The sports model M5 had its world premiere at the Geneva Motor Show in March 1998 and was launched in autumn 1998. In contrast to its predecessor, the E34 series, the M5 of the E39 series was only offered as a sedan and was not available as a touring. His five-liter naturally aspirated V8 engine delivers 294 kW (400 hp), making it the most powerful BMW series engine ever produced. The engine develops a maximum torque of 500 Nm and is coupled to a six-speed manual transmission. The external appearance of the M5 largely corresponds to the models in the 5 series with the M Sport package or the Edition Sport but differs from them in a duplex exhaust system with 4 tailpipes (instead of a single tailpipe on the M Sportpaket or Edition Sport); a modified front bumper (identical to the front bumper, which is also used for the M Sport package or the Edition Sport, but without the central cross strut and with a modified grille); rounded exterior mirrors with mirror holders in body color (instead of angular exterior mirrors with black mirror holders on the M Sport package or Edition Sport); special 18-inch alloy wheels with wide tires of dimensions 245/40 R18 and 275/35 R18 (instead of 17-inch alloy wheels with 235/45 R17 and 255/40 R17 for the M Sport package or the Edition Sport). The production of the M5 was integrated into the regular production of the 5 series in the BMW plant in Dingolfing. By the end of production in June 2003, around 20,500 units had been manufactured.
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