Only one example of the BMW M3 E36 Compact existed. It was based precisely on the E36 generation of the BMW 3 Series, and more specifically on the characteristic Compact bodywork. The BMW M division decided in 1996 to explore the possibilities of this Compact body. They manufactured a prototype with the S50B32 in-line six-cylinder engine, 3.2 liters of displacement and with the variable valve lift system (intake and exhaust) double VANOS. This atmospheric block offered a power of 321 CV, and was also mounted by the BMW M3 E36 Coupé a few years after its launch, although originally its engine was a 3.0-liter (also six-cylinder, logically) that was content with 286 CV. Most important of all, this M3 Compact weighed 150 kilograms less than the M3 Coupé of the time, and was also 23 centimeters shorter, so it should have been somewhat faster and more agile. BMW M equipped this M3 Compact one-off with four exhaust outlets (two on each side), Recaro bucket seats with carbon fiber structure in the passenger compartment, or Alcantara upholstery for the steering wheel, the gear knob and the handbrake handle.