The BMW E46 is a compact executive car which was produced by BMW from 1998 to 2007. It was introduced in May 1998 in the sedan body style. In 1999, a coupé and touring body style became available to all markets, and the sedan was released in the United States. A convertible and hatchback body style was released in 2000, the latter only for Europe, South Africa, Australia and New Zealand. The BMW E90 replaced the E46 sedans in late 2004, however the E46 coupe and convertible body styles remained in production until 2007.
All-wheel drive ("xDrive") was re-introduced in the 3 Series, after a break of 18 years. It was available for the six-cylinder 325xi and 330xi sedan/wagon models.
The E46 was considered the performance benchmark of its class and experienced success in many markets. The record selling year for the E46 chassis was 2002, when 561,249 vehicles were sold worldwide. The main competitors during the E46's production run were the Alfa Romeo 156, Audi A4, Lexus IS/Toyota Altezza, Mercedes-Benz C-Class, Saab 9-3 and the Volvo S60.
The M3 version of the E46 was powered by the BMW S54 straight-six engine. The M3 was released in 2001 and was available in coupé and convertible body styles. The transmissions available were a 6-speed manual or the 6-speed "SMG-II" sequential manual gearbox.
Exterior design


Since the production had started, the entire in-car entertainment system (Radio Function, Navigation System, Television and Telecommunications systems) is based on a very flexible automotive computer system. As a result the E46 models can all be easily upgraded with the newest BMW technologies including BMW's Bluetooth System, the DVD based Navigation system, as well as BMW's CD changers that play MP3s.
Weight and rigidity goals

In tune with BMW's core values, the E46 was released with a front engined rear-wheel drive layout with 50/50 weight distribution. This balance allows for optimal handling in regard to the drive train layout.