Another improvement is the refinement. Since its predecessor was virtually unbeatable in dynamics (some may say Alfa 156 overtook it in the last minute, but I don't agree.), BMW made most effort in upgrading refinement and quality. Open the door, you will find a very classy interior just like a downsize 5 series. Turn on the engine and you will discover that its engines become a lot more flexible that you need not to work too hard to access the same performance. Its ride is the most improved aspect. While preserving high level of stability, the suspensions (still MacPherson and Z-axle, but with different spring / damping rate and aluminium arms) become as supple as the 5 series. You wouldn't believe a car in this class and this size could ride so comfortable.  

Although the previous 3 was virtually perfect in engine and handling, the new 3 still improves a little, if not huge. The grass-root engine is basically the previous 1.9 litres sohc unit with variable intake manifold, but now added with twin balancer shafts to reduce NVH. It becomes as smooth as a six cylinder. Those real 6 pots engines also received improvement - Double Vanos variable valve timing now extends service to the exhaust valves, thus leads to a broad torque curve and brings the peak torque earlier, from 3950 rpm to 3500 rpm. "Smooth, responsive" and "the best six cylinder in the world" were what I described the previous engine. The new engines are even better.

Handling enhancement might be less noticeable. Due to improved sound insulation and supple ride, you may subjectively feel less exciting than before. In fact, the new 3 corners more stable, with less body roll due to the stronger chassis and wider track, which grew 63 and 57mm in front and rear respectively. Anyway, its cornering ability remains unmatchable. On demand, power slide is still accessible in this rear-driven saloon, although normally it is extremely secure. Steering remains very communicative.  

As a whole, the new BMW 3 series becomes far more refined and comfortable than ever, but remains as exciting as before. It might not be as driver-biased as before, but still manage to cope with Alfa 156. In my opinion, the Alfa can steal some sales by its 2.0 twin spark version, since it is cheaper and faster than 318i. However, Alfa V6 can hardly compete with 328i. Without compromising with cost problem, the 328i has the best engine and the necessary power to make itself a perfect car. 
 

3-Series Coupe

Not many people remember the earliest 3-Series was a 2-door. Not called a "coupe" but it was understood to be a thrilling machine like its predecessor 2002 (also 2-doors only). 4-door version was added in the second generation to broaden the market share and gradually made the 3er a high volume, more market bias family / executive saloon. The 3-series Coupe was added just in the previous generation. It purposefully lowered the roof, decreased the inclination of windscreen and rear window to make more sense of sportiness. Real improvement to performance and handling was nearly none. 

The latest 3-Series coupe is without exception. The height is lowered by 46mm, mostly come from the lowered roof and others from the lowered ride height. Windshield loses 2 degrees of inclination. 18mm increase in width consumes in wider wheel arches which house the optional 18-inches wheels. Compare with its predecessor, the new Coupe differs more from the saloon in exterior styling. The roof line seems more streamline, especially helped by the thick chromed side window frame which runs smoothly towards the C-pillar. A new front bumper incorporates larger air intake and deeper chin spoiler also helps. However, compare with 406 Coupe and Mercedes CLK this is really nothing. 

Predictably, the powertrain remains unchanged. Virtually all petrol engines in the saloon can be found in the coupe, starting from 318Ci, 320Ci, 323Ci to 328Ci. Both the 323 and 328 offers respectable performance, others are just the value choices. The coupe doesn’t get stiffer suspension setting than the "Sports suspension package" which is optional in the saloon. Similarly, the standard 17 inches, 225/45ZR17 tyres can also be found in the option lists of the saloon. However, the optional 18 inches, 225/40ZR18 front and 255/35ZR18 rear rubbers are so spectacular that only available in the Coupe. In addition to the beautiful 7-spoke wheels, I wonder if the forthcoming 330Ci need more. 

Even so, the Coupe drive like the saloon, although the latter is already the most capable driving machine in its class. Like all the new 3 series, refinement and build quality are second to none. All the controls are precise and have adequate weighting. The chassis balances very well, with smooth and responsive powertrain and confident brakes to match. The suspension is especially admirable as it fulfils the conflicting requirements of high speed body control and low speed bump absorption, even has an edge over Peugeot 406 Coupe. If there is anything worth questioning, it must be that the steering feel could be sharper at low speed. As Alfa 156 and Lexus IS200 have no plan for a coupe version, this is not really a worry to BMW. 

It could be the most all-round coupe among its rivals, namely CLK, 406 Coupe and C70. The Pininfarina styled and built 406 Coupe used to be my choice, thanks to its beauty, its accommodation and exceptional handling / ride compromise. The BMW rates higher in build and refinement while performs at least as good in engine, handling and ride. What BMW can’t match is the styling and the rear seat space. And then there is a polished BMW logo telling you it’s likely to be a class higher ... well, it is really pricier. An equally specified 328i ask for 15% more than the Italian-French beauty. 
 

330i and 330Ci

Basically, the M54 is derived from the 2.8-litre predecessor, with stroke increased to 89.6 mm. Versus the bore of 84 mm, it seems to be a torque-bias powerplant. However, it is amazing that the maximum power has gained a massive 38 hp out of a mere 186 c.c. extra displacement. In other words, the specific output has been raised from 69.1 to 77.5 hp / litre, this implies more changes than increased stroke had been done. BMW said the extra c.c. contributed to 11.6 horsepower, with the remaining mainly come from improved breathing and exhaust, plus a bit from increased valve overlap of the re-calibrated Double Vanos variable valve timing. As a result, the 330i and 330Ci now tops an untouchable 155 mph, and more remarkable is the acceleration: 0-60 now takes just 6.2 seconds, that’s quicker than many sports cars ! No wonder Autocar’s Peter Robinson called it "Junior M3". 

Flexibility throughout the whole rev range is particular impressive - maximum torque is 221 lbft occurring between 3,500 and 4,750 rpm, and there is at least 90% of the peak torque available between 1,500 and 6,000 rpm ! This provide superior in-gear acceleration, hence overtaking ability and effortless driving style. On the other hand, the free-revving all-aluminium unit is eager to rev to 6,500 rpm cut-off without losing smoothness. Cool. 

Without surprise, the new engine deliver better emission that meet the requirements of EU D4 (which will be effective in 2005). This made its achievement more appalling.  

The larger engine doesn’t get weight, but the whole car does. Because of the new-found performance, larger brakes are specified, as well as standard 17-inch wheels for the coupe. Unlike the sedan, the coupe also get new front air dam. 
 

Engine enhancement in mid-2000

All BMW’s six-cylinder engines were replaced steps by step, started from 5-series, then 3-series and Z3. The 7-series may not follow before it will be replaced by the new generation 7-series in late 2001. 
 

330xi Touring

4-wheel-drive sedans are not very popular in Europe, but American buys a lot of Audi and Subaru equipped with full-time 4WD. That calls for BMW’s re-enter the 4WD sedan market with the 330xi. Yes, it’s "xi" instead of "ix", the latter appeared since the E30 325ix but disappeared in recent years. However, the new 4WD system is derived from the X5 SUV rather than the previous ix.

As you might know, the X5’s system is a very simple permanent 4WD, with 3 regular differentials but no Limited Slip Differentials or differential lock-up at all. That means in the absence of tire slip, torque split between front and rear wheels is always 38:62, preserving most of the rear-bias character of the BMW. A little bit knowledge with 4WD will tell you this setup alone can’t deal with poor conditions, say, when one wheel rides on mud and loses traction, the basic principle of differential will transfer even more power to that spinning wheel and ignore other wheels that have traction. Therefore BMW employs electronic brake differential to get out of trouble. What is that ? as you might already learned that in my Technical School’s article about Porsche EBD, it is not actually a real differential. EBD employs ABS hardware to detect wheel spin, then apply braking to the spinning wheel so that the differential will transfer more power to other wheels. The same goes for the torque split between front and rear - apply brake force to rear wheels will lead to the transfer of more torque to front wheels by the center differential. Using EBD instead of LSD saves a lot of money. 

Then why not Audi or Subaru employ that ? because EBD is far less effective. While LSD can implement torque split continuously and fluently, EBD applies brake in discrete and jerky style, because until today we still fail to make a braking system operate smoothly (ABS just lock and loose at a very high frequency). Moreover, the response is relatively slow.  

Therefore whenever 330xi rides on muddy surfaces, it can’t overcome that as smooth as A4 Quattro. It struggles in the mud, switches on the off individual brakes times to times, moving slowly, worrying the driver. If the surface is really bad, brake discs may get overheated before overcoming the trouble, then the electronic throttle will automatically reduce engine output. Driving quick on wet and muddy roads, the rear-bias manner fail to provide the security of Quattro and leads to going side way if too fast.  

Obviously, 330xi isn’t the best all-weather 4WD sedan. Care must be taken on the worst road and weather. However, on dry gravel it goes very well yet provide superb ride comfort and noise insulation. Moreover, with the new 3.0 litre engine good for 231 hp, the 330xi Touring matches the performance of the previous 328i sedan. 
 

2002 update and new 318i

The steering rack is also tightened - now it takes 3.0 instead of 3.2 turns from lock to lock - while reduced power assistance increase steering weighting significantly. Now the steering feels more communicative. In combine with the aforementioned suspension upgrade, the new 3-series turn in sharper, balance better in corner, especially at the limit.  

Biggest news is the adoption of a new 2.0-litre four-cylinder engine for 318i. As the old one actually displaced 1.9 litre, you won't be surprised that the new engine displacement does not match with model number. Compare with the old 8-valver, the new engine is far more advanced. Built in BMW's engine plant in UK, it is constructed entirely in aluminium, having 16 valves, Bi-Vanos, 2-stage intake manifold and the famous Valvetronic fuel-saving technology (first appeared in 316ti Compact). According to EU's test data, it drinks 23% less petrol than direct-rival Mercedes C180. The new engine is perfectly smooth across a wide range of rev. Simultaneously, throttle response is crisp (should we call "throttle response" ? Valvetronic has no throttle) and the engine generates noises like any typical BMW straight-six. Both 143 hp and 147 lbft are competitive, especially the latter. 

However, biggest surprise is the introduction of SSG (Sequential Shift Gearbox) to 325 and 330i. BMW claimed it is a simplified version of the M3’s sequential manual box, but it is actually built around the regular 5-speed manual rather than the M3's 6-speeder and most importantly, the shift mechanism is supplied by Italy's Magneti-Marelli instead of Siemens. You might remember Magneti-Marelli is the maker of Alfa Romeo's Selespeed and Ferrari's F1 system, so SSG should be much cheaper than the SMG. Unfortunately, shift response is far slower than SMG. There are 3 modes: in "Normal" mode, shift takes 400-500ms; in "Sport" mode, it is reduced to 250-300ms but shift quality is less smooth; in "Launch" mode, 150ms can be achieved from first to second gear. 

Lastly, the late-2001 update completes with a slight facelift. This include restyling to headlamps, grille, front and rear bumpers. Prettier they might not be, but they remind you this is a better-than-ever 3-series.