

A brief history of the BMW E46 3 Series
The E46 is the fourth generation of BMW's 3 Series medium sized saloon car. The E46 was introduced in 1998 and replaced the E36 saloon the same year. The smaller-engined version, despite having a 2.5L engine, was designated "323," not "325," to increase the apparent spread between it and the correctly-numbered (to purists) 328. The touring and coupe models appeared in 1999 with BMW's newly designed Steptronic Semi-Automatic Transmission (available in all 3 series models), and the convertible and M3 later in 2000. The E46 Compact a 3-door hatchback, was revealed in 2001 to be sold in European and Australian markets only.
In 2000, the E46 lineup received an engine boost when the new M54 engines appeared for Model Year 2001 cars; with the new 3.0 L 330 replacing the 328, BMW renamed the 2.5 L car the 325. Outside of the engine and exhaust upgrades, there were few cosmetic changes, the most noticeable being the 330 receiving silver accents on the front fascia.
The first major overhaul occurred when the E46 saloon underwent a facelift in 2002, which included re-designed headlights, new bumpers and a stiffer chassis. Also, the 316i and 318i models received new, more powerful engines. Then in 2004 the coupe and convertible had a facelift which included new headlights, new front wings and bumpers, new selections in exterior colour, and redesigned sidemarker lights and LED tail lights. The M3s got a much more mild facelift that same year, with the inclusion of the updated boot and LED tail lights from the coupe/convertible.
Despite being introduced last, the E46 compact was the first to be replaced when 1 Series was launched in September 2004. In mid-2005 the E46 saloons were phased out with the introduction of the new E90 saloons. The E46 touring was also replaced later that year with E91. The E46 remained in production as coupe, convertible and M3 until the E92 coupe and E93 convertible was revealed in late 2006. The new M3 coupe concept was later unveiled in March 2007 during the Geneva Motor Show.
The E46 experienced enormous success in all markets and was widely considered the performance benchmark of its class. The record year for the E46 was 2002, when 561,249 vehicles were sold worldwide. As a credit to the E46 platform, it was chosen for Car and Drivers magazine's "10 Best Cars" every year of its production.
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