While the North American BMW E36 M3 was always an underpowered, poor relation to the model the rest of the world received, this modified build has no such issues thanks to an S54 swap, and it’s got the looks, handling and performance to impress wherever it goes.
We Brits love a moan. Truth be told, though, we honestly don’t know how good we’ve got it when it comes to cars. Other countries have outrageous purchase prices; some countries have astronomical road tax charges; and while we pay a chunk for fuel, prices are far higher in many places around the world. And when it comes to BMWs, we’ve been fortunate enough to have never really missed out on anything desirable. There have been a few exceptions here and there for sure, like the E34 M5 Touring, for example, but, generally speaking, our selection of M-cars has almost always included the cream of the crop.
And we’ve always been treated to the full-fat models, unlike other markets, which have had to make do with detuned versions due to emissions and other restrictions. Case in point, North America and the BMW E36 M3. Our cousins across the pond never received a good version of the third-gen M3 – it launched with the 240hp S50B30US, and the Evo came with the S52B32, which didn’t even get any more power. So it’s little wonder Stateside BMW enthusiasts like Alex Tran look for ways to give their E36 M3s the power they deserve, and this example is simply sensational on every level.
Alex’s car history
It’s fair to say that Alex has come a long way since his first set of wheels, a 2000 Honda Civic Si, but while he is a massive BMW fan now, it was Japanese machinery that captured his heart initially. “I started to become interested in BMWs around 2012. I wanted German engineering. A step away from the JDM scene that’s something more comforting with power,” he explains, and he took the plunge into Bavarian motoring with an excellent first choice. “My first BMW was a 2008 E92 335i. I bought this model for its sleek body style, dual exhausts and mainly for the twin-turbo N54 engine it came with. I loved the power it’s capable of, especially after upgrading to a single turbo,” he grins, and if it wasn’t obvious from looking at his E36, Alex is a keen modder.
“My Civic Si had almost every JDM part possible from the interior to the exterior. Under the hood was wire-tucked with a built B18C1 turbo. My E92 335i was a complete show car, which was also featured in Performance BMW a few years ago. It had everything from custom-built three-piece BBSs to full carbon rear seat delete to a DOC Race 6266 single-turbo making 600whp,” he says with a smile.
Why a BMW E36 M3?
So, what led him to the door of E36 M3 ownership? “The E36 M3 has always been one of my dream cars. They are only getting older and pricier. Luckily, I scored this one right before COVID hit and changed the market dramatically,” Alex tells us. “I found the car on the OfferUp app. It was bone stock with 219k miles on the original S50 engine and chassis and definitely needed some TLC. To name a few things, it had the infamous headliner sag, broken door panels, a cracked windshield, and the radio and power windows didn’t work,” and while that doesn’t make this M3 sound like the most appealing prospect, Alex was able to look beyond all that. “All that mattered to me was the straight body,” he says, and that’s fair because it’s easier to fix all those bits than waging war against rust.
Engine swapping the modified BMW E36 M3
“My original plan was to keep it stock and restore everything back to functional and showroom condition,” explains Alex, “but that didn’t turn out as planned at all. After blowing the original S50 engine, I decided to go all-out with the build, and went with an OEM-plus track-theme powered by a S54,” he grins, and while that’s not what he had in mind for this E36, you won’t hear him complaining about the end result.
As impressive as this whole build is, the S54 swap is what makes it really special, and it gives this American E36 M3 the heart it always truly deserves. And needless to say, with Alex’s penchant for modifying, the legendary straight-six has not been left standard. “When I first received the engine, I replaced the rod bearings, Vanos, and resealed it top to bottom before throwing the swap in the car. I went with the Karbonius carbon CSL intake, Megan cat-less headers, Radium fuel rail, fuel gauge and oil catch can. I chose these mods because it has that OEM+ performance look and keeps it classy,” Alex explains, and those enhancements have just given this S54 the edge.
The carbon airbox dominates the engine bay, and it’s pretty much the rule that if you’ve got an S54 and aren’t adding forced induction into the mix, you’ve got to have a CSL-style airbox on there because the induction noise will change your life. With the combination of an E46 M3 mid-section and an Eisenmann Race silencer, Alex’s E36 is making all the right noises and delivers plenty of performance.
Exterior changes on the modified BMW E36 M3
On the outside, it’s clear this isn’t a stock M3, but it’s actually surprising how little Alex has added. This is very much a case of the right mods coming together to make a big difference, and it goes to show that it’s not always about going all-out but rather, making the right choices.
“I tried my best to keep the exterior looking as stock as possible,” Alex tells us. “The only things I added were the LTW wing, Fancywide V2 diffuser and Rieger GT front lip,” but just those three elements do so much together. Up front, the Rieger lip adds a big hit of aggression, and it’s balanced beautifully by that high-rise rear wing while the diffuser fills out the rear bumper to perfection. There are plenty of small details, too, which make all the difference, like the Euro clear rear lights, the 50th-anniversary heritage roundels, and the Goldenwrench green fuel cap.
Wheels and brakes on the modified BMW E36 M3
Of course, Alex’s choice of wheels also makes a big difference to the car’s looks, and they add so much just on their own. “You can never go wrong with a nice set of BBS LM wheels. They flow so well on almost every car, especially this one,” Alex reasons, and he’s not wrong. The LM is such an iconic wheel, one that works well on just about any BMW you care to mention.
The classic cross-spoke 17s have been treated to raw brushed and lacquered faces courtesy of Sensei6 and look fantastic, mounted with Project Kics R26 wheel nuts, plus, we love the British Racing Green centre caps that add just a flash of colour. And visible through the spokes are the red calipers of the Porsche 996 911 big brake kit that’s been fitted along with R1 Concepts discs, a combo which delivers serious stopping power whenever Alex demands it.
Chassis upgrades
The drop that Alex has applied here to get the arches scraping over the tyre sidewalls is absolutely spectacular and comes courtesy of the chassis setup his M3 has been endowed with. “I decided to go with BC Racing BR coilovers, Megan Racing rear camber arms, Turner Motorsport front and rear sway bars, and an OMP front strut bar and changed every suspension and subframe bushings to Garagistic’s poly bushings. I also reinforced every weak point these cars have that is prone to cracking.
The car handles great for such a simple street setup,” enthuses Alex, and this selection of mods has made a big difference to how the M3 drives. The chassis is hardly lacking in standard form, but these chassis upgrades have ensured there is virtually no slack left in the chassis, and this E36 now handles like an absolute dream and delivers sheer driving pleasure from behind the wheel. In fact, the chassis is what Alex loves most on the whole build; “I would have to say the suspension is my favourite modification. That’s what makes this car handle so well and makes this car fun to drive,” he enthuses, and that’s why you should never scrimp on suspension.
Modified BMW E36 M3 interior changes
Alex has also worked his magic on the interior, and it is packed full of impressive additions. “A roll-cage in this car looks so perfect, so I had to have one. I kept the entire interior in the car for that street OEM+ look. After I parted out my E92, I took everything that works in the E36 and threw it in, like the Recaro Pole Positions, RTD shifter, and Pedal Haus pedals and floor plate,” Alex tells us, but there’s so much more going on in here.
The Recaros are joined by Takata harnesses, and there’s a Renown steering wheel with Chasing JS titanium steering wheel bolts, an NRG short hub and a Works Bell tilt hub. There’s also an RTD Race shifter with a CAE British Racing Green knob – a nice little nod to the centre caps on the outside – along with a Storm Motorwerks handbrake handle with a Condor M-Rain gaiter. Finally, Alex also has an ST Track gauge pod that houses the AEM AFR, oil pressure and volt gauges, plus an Ecliptech shift light, and the finishing touch comes courtesy of the carbon LTW-style shifter and glovebox trim. It’s all rather more full-on than the exterior, but we like the contrast and we love everything that Alex has done in here.
Conclusion
In fact, we love the whole build; it really shows off the E36 M3 at its very best, and this car is the culmination of what Alex set out to achieve when he started this unexpected project. “I wanted to build this for the street, track, and show,” he explains, and this is an M3 that can do it all. It’s got the chassis, seats and shifter that make it a dream to drive on the track, enough comfort to make it a perfectly reasonable street car, and the flair and individual touches that ensure it never goes unnoticed at any car show that Alex pulls up to.
It’s taken Alex just one year to get the M3 to how you see it here, and in that time, he’s managed to do everything he wanted. While that doesn’t happen very often among modders, it’s a great feeling when it does. “The car is right where I want it to be without anything else needing to be done,” he smiles, which means it’s time to hit the streets, tear up the track, and park up at some shows to make the most of everything this awesome S54 M3 has to offer
Photos: Sheldon Yagyagan (@finalshutter)
Want to see modified cars as cool as this in person? We’re hosting our Ultimate Performance Event, Trax Silverstone, this September 1st. With club tickets virtually sold out, you’ll be able to ogle over more than 3000 modified cars at the home of motorsport. Visit the event website here for more information on tickets.
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