August 15, 2017 – The 3 Series Compact was a small rear-wheel drive hatchback introduced by BMW in 1993 and it was based on the E36 3 Series. The 323ti was its most powerful trim and it made 170 horsepower and 245 Nm of torque from a straight-six engine.

The Sedan and Coupe versions of the E36 had M3 variants, but not the Compact. However, one 318ti owner decided to make a special case out of his car and swapped the inline-four with an S52 straight-six from an E36 M3, thus creating an unofficial E36 M3 Compact.

The hot hatch produces 240 horsepower and features a variety of upgrades, including M3-sourced limited-slip diff and alloy wheels, a brand new suspension and a 5-speed manual transmission from an E46 325ci.

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