How the E39 M5 V8 Saved BMW M in the US

BMW’s V8 Revolution: How the E39 M5 Won America’s Heart and Redefined M Performance

There’s something inherently naughty about a German luxury car with a big V8 and a manual gearbox. It’s like seeing a tailored Hugo Boss suit paired with cowboy boots—it shouldn’t work, but damn, it does. In the case of the E39 M5, it not only worked—it rewrote the script for BMW’s M division and helped it sashay into American garages.

BMW has long been the darling of the enthusiast world, but in the early ’90s, things weren’t so rosy for M cars in the US. The sublime E34 M5—with its hand-built, high-revving S38 inline-six—was complex, expensive, and sold like last season’s pleated pants. Only 1,476 made it to the States. Ouch. BMW NA was on the brink of pulling the plug on M cars entirely. The mood in Munich? Existential dread with a side of bratwurst.

Meanwhile, Lexus was storming into American driveways with silky V8s and buttery ride quality. BMW’s vaunted straight sixes, once the crown jewels, were starting to look a bit underdone—especially in larger luxury sedans. Something had to give.

Enter the S62: BMW’s first proper M V8. Based on the production M62 from the 540i, the engine was worked over by BMW’s motorsport elves. It was still a naturally aspirated, free-breathing marvel—no turbos, just engineering finesse. It gained displacement (from 4.4 to 5.0 litres), Alusil-lined bores, eight individual throttle bodies, and variable valve timing. Oh, and it redlined at 6,600 rpm—far from stratospheric, but still plenty spicy for a luxury performance saloon.

But here’s the kicker: the engine wasn’t created as a marketing stunt to woo Americans. It was the result of a protracted internal battle in Munich, where engineers considered everything from a V6 (gasp!) to a turbo inline-six. Cooler heads prevailed—eventually. As Project Leader Alex Hildebrandt put it, “We wanted to create a sports car for gentlemen, and the V8 was a natural choice.”

Once the V8 path was set, the E39 M5 developed fast—too fast. BMW had already lost two years faffing about with engine configs. And when one of the final long-term test engines grenaded just two months before production, panic spread faster than rumours at Mardi Gras. But the engineers fixed it, just in time.

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ABOVE: bmw-E39_M5

That S62 was paired with a Getrag 420G six-speed manual and a limited-slip diff. No fancy dual-clutch, no flappy paddles. You, your left foot, and nearly 400 horses (394 in US spec). It was raw, mechanical joy in a three-piece suit. The handling? Courtesy of stiffer springs, uprated brakes, and a suspension that had spent hours being flogged on the Nürburgring by M boss Gerhard Richter. It felt taut, precise, and balanced—not like a luxo-barge with ideas above its station.

Visually, the M5 kept it subtle. A discreet body kit, unique 18-inch “M Double Spoke” wheels, and aerodynamic tweaks whispered “I go fast,” rather than shouting it. Inside, it was all buttery leather and brushed trim—equal parts boardroom and backroad bruiser. Heated sports seats, Xenons, sat-nav, and a thicc M steering wheel came standard in the US. You could even pick two-tone interior options. Fancy!

BMW NA had its doubts—understandable, given the E34 M5’s sluggish sales. But the E39 platform was already brilliant, and the V8 just made it transcendent. A reasonable US list price ($69,700 at launch) helped, as did the inclusion of a track day at BMW’s Performance Center in South Carolina. Talk about value: drive it home, or drive it sideways.

By the end of production in 2003, the US had snapped up 9,198 of the 20,482 built. That’s nearly half. The E39 M5 not only brought the US back into the M fold—it defined it. And it wasn’t just for bougie execs or track-day dads. The gays were in too—just ask any man who wore tight jeans and a vintage leather jacket in 2002. It was the thinking man’s muscle car, the stylish rebel, the power-top of the Autobahn.

And the S62? It didn’t stop at road duty. It found its way into racing, from Grand-Am to the Daytona 24, even helping Chip Ganassi win championships. That kind of success is rare for a production-based engine, especially one designed in haste. But it proved that M’s first V8 wasn’t a compromise—it was a triumph.

Looking back, the E39 M5 was the turning point. It helped America become the biggest market for M cars, ensured the survival of the M badge, and laid the groundwork for everything that followed—the E60’s bonkers V10, the E92’s V8 screamer, and today’s twin-turbo terrors.

As BMW moves further into electrification, with AWD systems and hybrid wizardry, it’s worth remembering what made the E39 M5 so special. It was analogue perfection in a digital age, a car that made you want to drive, not just arrive. And it all started with the gutsy decision to go V8.

We love a good comeback story, and the E39 M5 was the M division’s fiercest glow-up. In a world of forced induction and automatic-only snoozefests, it remains a symbol of everything BMW once stood for—drama, balance, and a bit of leather-clad mischief.

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