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BMW recaps the glory days of M3 performance

Next in the BMW series chronicling the M3 come the second-generation E36 and third-generation E46 models. The E36 ran from 1992 to 2000, upping the game over its predecessor with a 3.0-liter inline-six that started out with 286 horsepower in Europe, or 240 hp when it came to the US in 1994. By the time it ended its run in 1999, it had vastly expanded the lineup and ushered in some key BMW firsts. Going beyond the coupe-only E30, the E36 added sedan and convertible bodystyles, and gave us BMW's Vanos variable cam timing system and the six-speed SMG sequential gearbox. The E46 that launched in 2000 would pare down the bodystyles to coupe and convertible yet go further with design and technical changes. The 3.2-liter inline-six shared only three minor components with the previous motor and put out 333 horsepower at 7,900 rpm. It introduced the power dome, fender vent, and inset exhaust tips as design trademarks. The special editions included the Euro-only M3 CSL, and the second-generation homologation special M3 GTR with a 493-hp, 4.0-liter V8, of which just ten were made. Having made the complete transition from racer for the street to comfortable, perfectly balanced sports car, BMW sold even more of the E46 with just two bodystyles than the E36 with three. Check out the video on the E36 above, then enjoy the look back at the E46 below. If you want to catch up on the latest BMW M3 and its M4 siblings, take a look at the video at the very bottom. Related Video:

BMW can't build enough M3 wagons, but the U.S. won't see any

Why, oh why, won’t the automobile companies that supposedly cater to Americans give us a viable touring wagon? Seems that BMW is one manufacturer thatÂ’s aware of the question, but skirts the answer. WhatÂ’s more frustrating is that the German company, and others, have for years been off-handedly tossing out the same refrain: “Maybe weÂ’ll bring a wagon back to the U.S.” Not. All the more irritating then is the news that the Bavarians have increased production in Munich of its M3 Touring longroof version to keep up with demand. The information comes via Bimmer Today, which spoke with BMW M CEO Frank van Meel. He said that the company was surprised by the amount of interest in the M3 Touring since its debut during last year's Goodwood Festival of Speed. In fact, he said, the company had to facilitate a production ramp-up within its Munich facility. Despite that increased production, the backlog of orders means that customers are still on wait lists, he said. Last year, van Peel admitted that demand for M-wagons in the U.S. has been steadily increasing, and exporting a touring example was a concept BMW was "taking into consideration.” Crossovers certainly are this decadeÂ’s version of the wagon, which leaves American enthusiasts will few choices: only expensive versions from Audi, Volvo and Mercedes-Benz and a couple of others. Details that were announced last year — a few months before the wagon went into production for sale in Europe, the U.K. and elsewhere — noted that the M3 Touring was only available in Competition spec with xDrive all-wheel drive and a 3.0-liter twin-turbo inline-six with 503 horsepower and 479 pound-feet of torque. Pricing started at GBP80,550 ($105,000 U.S.) More data on the M3Â’s intro here. Related video:

BMW, Toyota warn about Chinese market slowing down

BMW and Toyota are the latest automakers to become concerned about the closing throttle on the once rapidly accelerating vehicle market in China. There might be drastic effects on their ledgers at the end of the year. With the Chinese stock market no longer looking so healthy, the people just aren't buying as many new cars as in the past. Things got really bad in June after the first drop in deliveries in two years. BMW has already reduced Chinese production by 16,000 units so far this year. Despite the slowdown, the company has kept a brave face. "We experience that volatility in all emerging markets," BMW CEO Harald Krueger said in a conference call, according to Automotive News. The problem for Toyota is a bit stranger. Through July, the automaker's Chinese deliveries were actually up 12 percent. However, the gain was offset by falling sales prices. "This is making our business in China quite difficult. The business environment is getting tougher," Toyota Managing Officer Tetsuya Otake said, Automotive News reported. Much of the weakness in China has come in the middle part of the year, and from January through June deliveries were still up 8.4 percent. This means the effects haven't hit the financial results of some automakers too hard quite yet. In the second quarter, General Motors referenced the "challenging conditions" there but still posted a growing net income of $1.1 billion. Despite falling global sales, Toyota managed record income for the quarter, too.