BMW’s E36/5 3-Series Compact was an unusual and in some ways flawed car, yet despite its missteps and moderate sales figures, the little Kamm-tailed RWD hatch is definitely one of the more interesting and unexpected Munich models of the past quarter century. The car is not without is dedicated fans, but even inside the fiercely-loyal BMW enthusiast community, the Compact remains somewhat of a controversy as we approach its 25th anniversary. Will it ever be collectible? It certainly meets many of the criteria, including relatively low production numbers, a brief four-year US market production run and dwindling second (or fifth) hand availability, yet for one reason or another the market has yet to take notice in a big way. It’s always good to see nice ones on the street and at shows, as infrequently as those occurrences are, and they drive nicely too, with an even stronger rearward-biased handling balance. So far we have had seven of them listed on BaT Auctions.
Launched in Europe in 1994 (a year later in the US), the Compact was BMW’s first production hatchback since the discontinuation of the 2000 Touring in 1974. Designed to compete primarily with highly-optioned Golfs and similar top-range Euro hatchbacks, the E36/5 was unconventional in that it retained RWD, albeit with a semi-trailing arm rear suspension design (cribbed from the previous E30 platform 3er) rather than the multilink Z-axle fitted to all other E36 models. BMW’s reasoning for the change was two-fold, as the E30-based suspension setup facilitated not only a lower, larger trunk within the constrained space of the Compact’s cropped tail, but also much reduced production costs, allowing the car to be marketed at prices closer to those of its FWD competitors.
From the A-pillar forward, the E36/5 was all standard 3-series, but pretty much everything from this point back was at least modified and frequently unique to the Compact–even the framed doors, although similar in shape to those of the coupe were specific. One notable exception was the wheelbase, which at 2700mm (106.3 inches) remained identical to the rest of the contemporary 3er range, despite the Compact’s roughly eight-inch shorter overall length.
The interior was another departure, again with lowered production costs playing a large role in the decision to use a simpler dash design with E30 carryover elements such as the vents. The above image appears to be from a late Euro-market car (despite the automatic trans), as this style of three-spoke airbag wheel doesn’t seem to have been fitted to US market examples. Note also the Compact-specific door trim panels. In back, the rear bench was a split folding design to allow for more cargo space when needed.
Worldwide, launch models were available only with gasoline four-cylinders–a 1.6 liter SOHC M43 of ~100 horsepower in Europe, or a (standard in the US, optional ROW) twin cam M42 1.8 delivering ~140. A turbodiesel four and 174 HP M52B25 2.5 liter six would later become available in some markets, but excluding swaps, all North American cars were 1.8 powered. All US cars (and most European cars except for base 1.6 models) wore the historic ti (turismo internazionale) badge, though on this side of the Atlantic at least, the most desirable option was probably the Club Sport.
It’s believed only 200 of these cars were built for the US market, with changes over the standard ~$19k (base) 318ti including M-sport suspension tuning, M3-style mirrors (not seen in the brochure image above), front bumper and sideskirts. Special 16×7″ wheels with 225/50/VR16 tires, sports seats, a sport steering wheel and M-branded shift knob were also standard on the Club Sport, and only two colors were offered–Schwarz (black) and Hellrot (bright red). Options were limited to a limited slip diff, sunroof and premium audio, and pricing started at roughly $25k.
Other notable variants included the US-only California Edition, whose claim to fame was a big Webasto-style electric folding fabric sunroof. Like the CS, these are now sought-after among enthusiasts, though with fewer than 300 built supply is limited. For context, less than 23,500 E36/5 ti’s were sold in North America, out of a total world market production run of ~375,000.
