Third generation 5-series: E34 - 1989-1996
The third-generation 5 Series, designated E34 within BMW, was truly an all-new vehicle. The 1989 5 rode on a longer 108.7-inch wheelbase, had an all-new structure with an all-new suspension, was significantly roomier than before and was a leap forward in sophistication, refinement, performance and overall comfort. As good as the E12 and E28 5 Series cars were, it was the E34 that propelled the line to the forefront of critics’ minds.
The E34 arrived in America powered by slight variations of familiar drivetrains. The 525i used a 2.5-liter version of BMW’s small SOHC straight six making 168 hp, while the 535i used a 3.5-liter version of the big SOHC six rated at 204 hp. While Europe got a new E34-based M5, it wasn’t initially offered in America. A driver-side airbag became standard on all 1990 BMWs, but otherwise changes to the 5 Series were minimal. Automatic Stability Control (ASC) was added to the 535i’s options list during the year, however.
The M5 returned to America during the 1991 model year with its 3.6-liter, DOHC, 24-valve Motorsport six now whacking out a full 310 hp. Available only with a five-speed manual transmission, the M5 was again a sensation despite the fact that it wore a set of the ugliest 17-inch wheels ever made.
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