BMW M5 E34
The BMW E34 M5, produced from 1988 to 1995, perfected the formula that the original E28 M5 had pioneered: a discreet executive sedan with the heart of a sports car. Where the E28 had been a somewhat raw and uncompromising machine, the E34 M5 combined its ferocious straight-six power with a level of refinement, comfort, and daily usability that made it the definitive super sedan of its era. For many BMW enthusiasts, the E34 M5 represents the finest balance of performance and luxury that BMW M division has ever achieved.
The S38B36 engine was the star of the show. This 3.5-liter inline-six traced its lineage directly to the BMW M1 supercar's M88 engine and the M635CSi's S38B35. For the E34, the S38 received numerous refinements: a revised cylinder head with larger intake ports, a new intake manifold, optimized camshaft profiles, and Bosch Motronic ML3.1 engine management. The result was 315 horsepower at 6,900 RPM and 360 Nm of torque at 4,750 RPM. In 1992, European-market cars received the S38B38, an enlarged 3.8-liter version producing 340 horsepower, though the US market retained the 3.5-liter unit throughout production.
What distinguished the S38 from merely fast engines was its character. The inline-six was silky smooth at low RPM, pulling with quiet authority in urban driving. But above 4,000 RPM, the engine underwent a transformation: the exhaust note hardened, the intake began to howl, and the tachometer needle swept toward the 7,000 RPM redline with an urgency that belied the car's executive sedan appearance. The S38 was an engine that rewarded drivers who explored its full range, revealing new layers of performance with each thousand RPM.
Each S38 engine was hand-assembled by a single technician at BMW M's Garching facility, a process that took approximately 30 hours. A brass plaque on the intake manifold bore the assembler's name — a tradition that connected each M5 to its builder and reflected the care invested in its construction. This hand-assembly process ensured exceptional quality and contributed to the S38's reputation for durability when properly maintained.
The E34 M5's chassis was a masterful evolution of the standard 5 Series platform. BMW M engineers fitted stiffer springs, Bilstein shock absorbers, thicker anti-roll bars, and M-specific subframe bushings. The self-leveling rear suspension maintained consistent ride height regardless of passenger and luggage loads, preserving handling balance during long-distance touring. The steering was a recirculating ball system — less direct than a rack-and-pinion but beautifully weighted and communicative, with a natural feel that many E34 M5 owners consider superior to modern electric systems.
Visually, the E34 M5 was distinguished from standard 5 Series models by subtle details: wider front and rear bumpers, M door mirrors, a discrete rear lip spoiler, and unique 17-inch M System throwing star wheels. The approach was deliberately understated — BMW M division understood that M5 buyers valued discretion over exhibitionism. From twenty meters away, the E34 M5 looked like a well-optioned 535i. Only the cognoscenti would notice the wider track, the different bumper profiles, and the telltale quad exhaust tips.
A Touring (wagon) version was introduced in 1992, creating one of the most desirable estate cars ever built. The M5 Touring combined the S38's prodigious performance with genuine family-car practicality, offering a driving experience that no other manufacturer could match. Only 891 Touring models were produced, making them significantly rarer and more valuable than the sedan.
The E34 M5 was produced during a golden era for BMW, when the company's engineering priorities emphasized driver engagement, mechanical quality, and understated excellence. It was the last M5 with a naturally aspirated engine, the last with a manual-only transmission, and the last built on a platform designed before electronic intervention became prevalent. These characteristics, combined with the S38 engine's magnificent character and the car's all-round capability, have elevated the E34 M5 to icon status among BMW enthusiasts.
The S38 engine is robust but demands meticulous maintenance — verify timing chain tensioner condition (critical), oil changes at 5,000-mile intervals, and valve adjustment history. Check for oil leaks from VANOS unit (later cars), valve cover gaskets, and oil pan. Cooling system components (water pump, thermostat, radiator, hoses) should be proactively replaced if original. Inspect subframe rear mounting points for cracking, a common E34 issue. Self-leveling rear suspension spheres eventually fail — check for sagging. The Getrag gearbox is durable but clutch hydraulics can leak. Rust affects wheel arches, jack points, and trunk floor. Service history with S38 specialists is crucial. Touring models command a significant premium due to extreme rarity.
Total production of approximately 12,254 units: 11,363 sedans and 891 Touring (wagon) variants. The initial S38B36 3.5-liter engine (315 hp) was used worldwide. European markets received the S38B38 3.8-liter engine (340 hp) from 1992. North American cars retained the 3.5-liter throughout. The Touring was available from 1992. A 6-speed manual was offered in later European cars. Each S38 engine was hand-assembled by a single BMW M technician.