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Originally Posted by BiMMa b0i M3
the E36 M3's have 240hp with a 3.0L single VANOS engine
the E46 M3's have 333hp with a 3.2L double VANOS engine
pretty much no difference other than style, electronics, horsepower, and torque, and maybe balancing.
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The E36 M3 started out with a 3.0L engine for both European and U.S. versions.
The Euro version had a horsepower rating of 286 and 240 for the U.S. version.
Starting from model year 1996, both versions were equipped with 3.2L engines, which the Euro version horsepower was rated at 321 with the U.S. version unchanged at 240.