The E34 is the third generation of the BMW 5 Series. It went on sale in 1987, receiving decent feedback. Shortly after, in September 1988, the German manufacturer introduced the BMW E34 M5. This sportier, more capable iteration of BMW’s executive sedan was now in its second-generation and had big shoes to fill following the success of the original E28 M5.
Handbuilt Perfection
The E34 M5 packed a more powerful engine, better tech, and electronics and boasted superior build quality and luxury. However, it was also heavier and less agile and so wasn’t as well-received as its predecessor.
That isn’t to say that the E34 M5 wasn’t a thoroughly capable machine. It was. This M5 was also the last production car hand-built by the ‘M’ division. Over time, it’s grown to be a favorite amongst tuners, especially since the two iterations on either side of this one are significantly more expensive to get your hands on and more complicated to work with.
Even in stock form, the E34 M5 is a joy to drive. It didn’t pack the explosive performance that the M5s that followed became known for, but keep the revs high, and you’ll forget all about any other car.
Under the Hood
Over its 7-year production run, the E34 M5 was powered by two engine variants — a 3.6L and 3.8L, naturally-aspirated inline-six. Both engines were derivatives of the M88 engine from the legendary BMW M1 and were part of the S38 engine family that also powered the previous-generation M5. Simply put, the E34 M5 featured an upsized iteration of the engine from the E28 M5.
The E34 M5 debuted with a 3,453cc inline-six that produced 311 hp and 266 lb-ft of torque. This was enough to propel the car from 0-62mph in 6.3 seconds. In 1992, this engine was replaced by the S38B38 — the ’38’ at the end, signifying a bump in displacement to 3,795cc.
BMW did this to comply with stricter emission norms, but the update never officially made its way to the North American and South African markets. This also saw peak output figures jump to 335hp and 295lb-ft, enabling the M5 to put in its first-ever sub-6-second 0-62mph time — 5.9 seconds.
The E34 M5 may not be quick by today’s super sedan standards, but numbers seldom paint the perfect picture. Most people who’ve driven it have come back with similar opinions — the inline-six really gets going once it spins past the 3,500 rpm mark. And since peak power is produced only close to 7,000 rpm, this is an engine you’ll have to rev if you want to play with it. This isn’t necessarily bad as the S38 enjoys climbing revs and sings quite the tune as it does.
Beyond The Powertrain
The E34 M5 featured a classic design that drew inspiration from the BMWs that came before it, and it can be easily mistaken for the standard 525i. In a sense, it was the perfect sleeper back in the day.
What set it apart was the addition of a beefier body kit that included different bumpers on either end and an interesting M System alloy wheel design that featured a fan to channel cool air to the brakes. Many will argue that this is the coolest yet ugliest set of wheels to grace a car… and they’re right. While this system did work, it made the wheels look somewhat awkward.
Overall, the M5 was as low-key as a performance sedan could get, and it wasn’t even trying. BMW just decided not to equip it with rear diffusers or a spoiler, and the only giveaway at the rear is the larger exhaust pipes.
Interiors
The basic approach to styling continues on the inside of the E34 M5 as well. If you knew what to look for, you could quickly tell the difference between the M5 and the 525i, but the inexperienced eye would have a more challenging time.
The M5 featured sport seats in the front and a different instrument cluster with four analog gauges. Like all BMWs of the time (and today), build quality, fit and finish were top-notch. Where the interiors got interesting was with the rear passenger seats.
A giant storage block split the rear seats, and the seats themselves had prominent bolstering. Granted, this is common in cars of today, but it was a novelty feature back then.
This isn’t an M5 that screamed for attention. It was simple but brilliantly put together. The gray and black interiors may come across as a little too ordinary for many, but there was no questioning that it was a great car to be in.
Ergonomics and Dimensions
The arrival of the E34 M5 also marked the dawn of BMW’s transition into becoming “the ultimate driving machine.” While it wasn’t the company’s official tagline, the German paid a lot of attention to how the car drove. And they did a splendid job at getting it right.
Drivers have reported that the driving experience of this M5 flowed as naturally as possible. You didn’t have to look for the gear lever or force a shift; everything came together in a beautifully analog, yet effective manner. The E34 M5 represented the pinnacle of BMW engineering.
One of the downsides of the M5 was its weight. At 3,681 pounds, this was a heavy car even back then. That said, the team behind the project managed to engineer a sophisticated suspension system that, quite literally, carried a lot of the car’s weight on its shoulders.
BMW E34 M5: Down the Line
BMW made a total of 12,254 examples of the E34 M5 from 1988 to 1995. Only 1,678 of those reached North American shores between 1991 and 1993, so getting your hands on one might be a tall order these days; finding one that’s been well taken care of, harder still.
BMW also introduced the M5 Touring — as the name suggests, a 5-door wagon iteration of the E34 M5 — that was the M Division’s first wagon as well as the last hand-built M car. Only 891 units of this model were produced, and they’re, understandably, rare.
Apart from the standard cars, BMW also developed four special editions of the E34 M5 — the Cecotto, Winkelhock, 20 Jahre editions, and an RHD UK Limited edition.
A Note For Buyers
The E34 grew to be a hit amongst tuners because it was reasonably easy to customize, and there’s an array of aftermarket parts that you can get. Yes, the M5s that came after offered just as many, or more, opportunities to modify; however, the generations that followed, starting with the BMW E39 M5, were far more sophisticated and required more time and money to work on.
That’s why the E34 M5 is considered the last of the tuner-friendly M5s.
Things to Look Out For
If you’re in the market for an E34 M5, don’t be tempted by some of the lower-priced options you may find. These cars have been around for decades and have very likely been through multiple hands and extensive repairs.
If you narrow down on one, make sure to check if the engine valve clearance has been done at regular intervals and the timing chain tensions have been replaced. It’s also to do a check for any oil leaks.
Another aspect to watch out for is the suspension. The SLS (Self Levelling Suspension) on the M5 were prone to leaking, and it’s pretty common to find that they’ve been replaced with aftermarket units.
BMW E34 M5 – Not to Be Forgotten
The BMW E34 M5 was bookended by the original BMW E28 M5 and the BMW E39 M5, widely considered the best M5 ever made. Unfortunately, it means that it occupies an often forgotten role in its family. The silver lining is that its lesser-known status enables a more affordable price tag.
While a used E28 or E39 generation will cost you over $100,000, you can get yourself a relatively decent E34 M5 for nearly a quarter of the price. A steal, no matter how you look at it.
