The E34 generation of the M5 was produced from September 1988 to August 1995. Hand-built at BMW M GmbH in Garching, Germany, it was based on the E34 chassis produced at BMW’s Dingolfing plant. After arriving as a painted shell from Dingolfing, the M5 was assembled by a team of M employees and took about two weeks. Only the South African M5 was entirely assembled at the Rosslyn, South Africa assembly plant from complete knock down kits supplied from Garching, Germany.
Cosmetic changes to the exterior from the standard E34 include unique front and rear bumpers and side rocker panels, contributing to a drag coefficient of 0.32 (from 0.30), while the inside saw upgrades that include an M5-specific shifter surround and rear headrests.
The E34 M5 released with the S38B36 engine which produced 232 kW (315 PS; 311 bhp) at 6,900 rpm and 360 N⋅m (266 lb⋅ft) at 4,750 rpm.
In the second half of 1991, engine displacement was increased to 3.8 litres with the S38B38, with exception to North America and South Africa, which continued with the 3.6 litre engine due to emission laws. Power increased to 250 kW (340 PS; 335 bhp), and the ignition changed to a distributor-less system with each cylinder having an individual coil. BMW also used a dual-mass flywheel in place of the single in the 3.6 for a smoother idle and throttle input at the expense of response. The standard self-leveling suspension (SLS) system, which maintained a constant ride height in the rear, was replaced with Electronic Damper Control (EDCIII+), an electronically controlled and hydraulically regulated system that can switch between comfort “P” setting and a more track-oriented “S” setting. A 6-speed manual transmission was made standard on the last model year (1995), which added an overdriven top gear. The E34 M5 was the last M5 to feature an engine with a historical link to a BMW Motorsport racing engine.
In 1992, a five-door Touring version (estate/wagon) was introduced in LHD form, with 891 cars made. The E34 M5 Touring was BMW M Division’s first wagon, as well as the last hand built M car made.
