Within BMW circles, it's a commonly held belief that the U.S.-spec M3 wasn't a "real M3" because it didn't have a real M engine. The 1995 M3 used a 3.0-liter version of the regular 325i's straight-six — whereas European cars used a special 3.0-liter straight-six with a Independent-throttle-body cylinder head taken from the McLaren F1. The horsepower difference was 240 hp (US) versus 286 PS (DIN.) To make matters worse, the 1996 and later U.S. M3 used a 3.2-liter that also made 240 hp, whereas the Euro car got a 3.2-liter with 321 PS. The primary reason for the US engine was financial — the E30 M3 was a sales failure in North America, and BMW NA didn't want to risk another one. The E36 M3 was a bargain — unlike the E30 M3, which was a buzzy, four-cylinder homologation-special race car, the six-cylinder M3 did everything better than the 325i. And instead of an $8000 price premium over the base car, the M3 cost just $3000 more. The US car was a huge sales success, selling three times the number of cars BMW anticipated. And BMW NA then convinced Germany to add a 4-door sedan, and it outsold even the coupe. The reason - it was a handling high watermark for BMW, a perfectly balanced sports car with a real back seat and daily usability. The Euro M3 engines were fizzier than the US — the S50B30 revved to 7280 rpm; the S50B32 3.2-liter revved to 7600 rpm. They made amazing noises — but also suffer from some big maintenance issues that the lower-stress U.S. engines don't: spun bearings being the biggest. Most importantly, in a drag race between the U.S. and Euro cars in this video (both 3.2-liters), they were dead even to 60 mph — and stayed that way through third gear, leaving Cammisa to conclude that the more reliable U.S. car, especially in sedan form, is the E36 to own. === Subscribe to our YouTube channel for new videos every day! http://bit.ly/HagertyYouTube Visit our website for daily automotive news, cars stories, reviews, and opinion: https://www.hagerty.com/media Stay up to date by signing up for our email newsletters here: https://www.hagerty.com/media/newsletter/ Follow us on social media: Facebook | https://www.facebook.com/Hagerty Instagram | https://instagram.com/Hagerty Twitter | https://twitter.com/Hagerty If you love cars, you belong with us. Hagerty Drivers Club is the world’s largest community for automotive enthusiasts. Members enjoy valuable automotive discounts, exclusive events and experiences, roadside service created specifically for collector vehicles, and a subscription to the bimonthly Hagerty Drivers Club magazine. Join Hagerty Drivers Club here: https://www.hagerty.com/drivers-club Like what you see? Watch our other series including: Redline Rebuilds | Time-lapse engine rebuilds from start to finish http://bit.ly/RedlineRebuild Barn Find Hunter | Tom Cotter searches the country for abandoned cars http://bit.ly/BarnFIndHunter Jason Cammisa on the Icons | The definitive car review https://bit.ly/JasonCammisaICONS Revelations | Untold Stories About Automotive Legends with Jason Cammisa https://bit.ly/JasonCammisaRevelations Contact us: Suggest and feedback - tips@hagerty.com Press inquiries - press@hagerty.com Partnership requests - partnerships@hagerty.com