BMW has a long and rich history of creating some of the world’s best driver’s cars. The type that, once you’ve settled down the spirited engine, becomes a treat to drive every day. A car you look forward to getting into in the morning. A car you double look at before going into work and thinking “that’s really mine”, and a car that is your weapon of choice on the weekends. With a well-documented history that auto fans are often knowledgeable about, the M5 has a certain sports car aura that is untouchable.

However, what if there was a BMW M5 lurking in the shadows that you didn’t know about? There is a BMW that has gone completely under the radar that shares almost everything with an M5, aside from the engine and name: the BMW 540i M-Sport (E34). Whilst this may sound like a toned-down M5 wannabe, those lucky enough to experience this model would certainly have felt like they were in a flagship M series car.

The History Of This Mysterious V8 Sleeper

bmw 540i m sport
BMW 540i M Sport rear 3/4 shot
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The 540i M-Sport was released during a transition period for BMW. With the E34 M5 coming to the end of its run, BMW’s original idea of federalizing the 3.8-liter for the USA never happened due to high costs, and so, America was without a performance sedan in the middle of the 1990s. Not wanting to make them wait until the next generation of M5, BMW took to the leftover parts bin to create something that, whilst admittedly last-minute, was extremely cool. As this was placed as a flagship, it had to have the guts to match. And so, the company took the shell of the 540i and turned it into a V8 monster. Similarities to the M5 included:

  • Electronic Damper Control suspension from the M5 Nürburgring edition
  • Servotronic steering box from the M5 for precision turning
  • High-performance brakes that featured on the outgoing M5
  • The M badge, aero, and side skirts

The skeletal 540is were sent to the prestigious BMW facility to be hand-finished with a plethora of M5 components. This was a serious endeavor.

The Outcome Was Sensational

bmw 540i m sport v8 engine
BMW 540i M Sport V8 engine
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Because it was simply a beefy 540i from looks but with the performance underpinnings of an M5, you had a vehicle that had a sporty edge, but clearly wasn’t an M-series car. But once it got going, that more mid-range Bimmer look transformed into a comfortable road-rocket with the performance of a genuine M series vehicle.

The 1995 BMW 540i M-Sport Specs

Horsepower

282

Torque

295 Ib-ft

Transmission

6-speed manual or auto

0 – 60 mph

6.0 seconds (manual)

Top Speed

155 (restricted)

Weight

3,800 pounds

The soul of the 540i M-Sport comes from the spectacular, naturally aspirated 4.0-liter M60 V8. Not only did it have an excellent soundtrack, but it actually offered more low-end torque than the more excitable M5 inline-six. That means, for highway trips and cruising, the 540i M-Sport actually has a smoother driver and more laid-back experience than its M-badged counterpart.

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But Could It Actually Rival The Rapid M5?

A Silver 1993 BMW M5 E34
A Front Left 3/4 shot of a Silver 1993 BMW M5 E34
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Astonishingly, due to the huge V8 engine, the 540i M-Sport was actually faster in a straight line than the outgoing E34 3.6-liter M5. Despite the M badge, it couldn’t quite fend off the huge naturally aspirated lump. In track performance, though, it swung the other way slightly. Although the 540i M-Sport made use of several M-series features for better handling, it wasn’t quite enough to fend off the top-of-the-line extra features of the E34 M5. With marginally better driving dynamics and the secret weapon, a limited-slip differential, it wasn’t enough to match the M5 in the corners, though giving it a valiant effort.

1992 BMW E34 M5 (3.6-Liter Specs)

Horsepower

311

Torque

265 Ib-ft

Transmission

5-speed manual

0-60 mph

6.3 seconds

Top Speed

155 (restricted)

Weight

~3,700 pounds

The True Rival Of M5’s, The 3.8-Liter Monster

 bmw m5 e34
BMW E34 M5 side shot
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Concluding that the 540i M-Sport was trading blows with the 3.6-liter variant of the E34, the true challenger comes into the spotlight. The one that birthed the circumstances for the existence of the shadow M5. The legendary 3.8-liter European model that the US missed out on. But did the USA really miss out? Or was the V8 rival actually the one to go for?

1995 BMW E34 M5 (3.8-Liter Specs)

Horsepower

340

Torque

295 Ib-ft

Transmission

6-speed manual (1994 onward)

0 – 60 mph

5.9 seconds

Top Speed

155 (restricted)

Weight

3,638 pounds

While the 3.6-liter model of the M5 and the 540i M-Sport were incredibly similar in overall performance, the 3.8-liter model posed the very best of BMW engineering at the time, which catered towards outright performance. Whilst their 0-60 mph times are impressively similar, once the two models passed this barrier, the M5 would begin to noticeably pull away with its 60 extra horsepower. Not only that, but the M5 was loaded with serious upgrades: even larger 13.6-inch brakes, thicker anti-roll bars for stability, and that trusty LSD. The two engines had different strengths, but for pure insanity, the 3.8-liter inline-six was intended for raw performance, though the V8 had a certain low-RPM urgency that is difficult to match.

White 1989 BMW 325i Coupe


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Does The 540i M-Sport Live Up To Its M5 Big Brother?

bmw m5 engine
BMW M5 engine
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Despite being an afterthought that was thrown together (albeit mostly by hand), the 540i M Sport not only does an impressive job of holding its own against an M5 90 percent of the time, but it actually has its own advantages. For some, a V8 engine is unbeatable. If you were happy with the 3.6-liter M5 performance, but you wanted something with a smoother edge, something that would cruise more effortlessly, the 540i M-Sport proved to be the perfect balance of both worlds. It had a more understated look than an M5, utilized several handling-based features from M-series cars, but had more of an ability to relax into a comfortable drive. Essentially being an E34 M5 lite, which loved a silky highway run.

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Which Do Enthusiasts Prefer?

bmw 540i m sport interior
BMW 540i M Sport interior
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Each of these three models discussed offers something similar, yet unique. The original E34 M5 3.6-liter offers a purer definition of what the traditional analog M5 experience was all about. With the engine linking back to the M1 supercar and fewer electronic aids to help physics-defying performance, this is for the enthusiast who wants the last hurrah of what the M5 used to be. Countering this, the 3.8-liter variant appeals to those who want to experience the absolute pinnacle of 90s sedan performance. With an insane 3.8-liter inline-six and its above-and-beyond tech, this is the E34 that still feels properly fast.

Black BMW 5 series E34
Front and side shot of a black BMW 5 Series E34
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And as for the 540i M-Sport, it is a machine way too solid to be as unknown as it is. To anyone on the road, it would seem like a pretty ordinary yet stylish sedan of the time, but once the driver puts his foot down, you are wondering what on earth happened. A true sleeper. It can hold its own in performance, in handling, and it has its own set of strengths that derive from that buttery smooth, raspy V8 engine.

Sources: BMW, Bring A Trailer



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