The E46 M3, first introduced in October 2000, appeared worldwide with the new 3.2 L S54 M-tuned engine. It was only available in coupe and convertible bodies as the saloon version had been dropped.
The E46 M3 was offered with a standard 6-speed Getrag transmission, but optionally came with an SMG drivelogic transmission (also known as the SMG II). This is the standard 6-speed Getrag transmission with an electrohydraulically actuated clutch (no clutch pedal). Shifts are made via the SMG gear knob or the steering wheel mounted paddle shifters. The engine had a redline of 8,000 rpm. As with most M engines, the S54 again had 6 independent throttle bodies and this time electronically operated throttles (drive-by-wire throttle with no cable).

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