The History:

The BMW Z3 was the first modern mass-market roadster produced by BMW, as well as the first BMW model assembled in the United States. It was introduced as a 1996 model year vehicle, shortly after being featured in the James Bond movie, GoldenEye. There were a few variants of the car before its production run ended in 2002, including a coupe version for 1999. It was manufactured and assembled in Spartanburg, South Carolina. The Z3 was replaced by the BMW Z4 in late 2002 at the Paris Auto Show.

Overview:

The Z3 was developed from the E36 platform of the 3 Series. The resulting platform is sometimes referred to as the E36/7(roadster) or E36/8(coupé). The rear semi-trailing arm suspension from the E30 was used rather than the more sophisticated multilink suspension from the E36. At first, only the 1.9 L M44B19 straight-4 engine was offered, but its 138 hp was not up to buyers' expectations. 

Interior appointments too were not up to the standard of other BMW models, and the plastic rear window looked poor compared to the glass unit found on the much cheaper 1999 Mazda Miata.

In the North American market, the inline 4 engine was complemented by a larger straight-6 engine in 1997: the 2.8 L M52B28. This engine, similar to the BMW M52 in the 328i except with an all aluminum block and head, was especially desirable with its 189 hp. The M Roadster (see below) appeared in 1998 with a 3.2 L S52B32 I6, just as the four was retired. In 1999, the 1.9 L 4-cylinder engine was replaced with a 2.5 L straight-6 M52TUB25, producing 170 hp. Due to marketing, BMW wanted to differentiate the 2.8L engine from the 2.5L engine, so it was badged it 2.3 just like the 3-Series 323i which also has a 2.5L engine.

Outside of North America, the 1.9 L 4-cylinder was replaced with a 2.0 L straight-6 in 1999.

Year to year standard equipment changes

1997 - Traction control;
1998 - Rollover bars;
1999 - Side airbags;
2000 - Revised tail styling;
2001 - Dynamic Brake Control.

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