}} Launched in March 1994, the E36 3 Series Compact (model code E36/5), was BMW's first hatchback since the
2002 Touring model was discontinued in 1974. It reportedly cost BMW $500 million USD to develop the hatchback from the E36 platform. From the front bumper to the
A-pillar, the E36/5 is identical to the E36 saloon. From the A-pillar back, the E36/5 is unique. Some reviewers believed that this arrangement caused the E36/5's to be prone to
oversteer. The launch models were powered by four-cylinder petrol engines, with the range expanded over the years to include a four-cylinder
compressed natural gas engine, four-cylinder diesel engines, and six-cylinder petrol engines. In North America, the sole model available was the 318ti, initially powered by a
DOHC 1.8 litre,
inline-four BMW M42 engine. In 1996, in conjunction with making the car compliant with
OBD-II, the M42 was replaced by the 1.9-litre
M44 engine. A large sunroof, covered by a folding canvas roof was available from mid-1995. This model was known as either the
California Top Edition or the
Open Air Edition. In September 1996 (for
model year 1997), the 3 Series Compact received a
facelift in line with the remainder of the E36 range. Changes included revised tail-lights, grille, bumpers and mirrors. The car embodied all the technical and optical characteristics of the standard E36 M3, but in the compact body. Quad exhaust tips,
Recaro sports seats, four-point seatbelts, an Alcantara steering wheel and gear lever were specific for this model.
Reception and sales figures The E36 Compact received a positive reception, as it retained the ride/handling compromise of the saloon and coupe, with the Compact being more responsive (due to lighter weight) and more prone to oversteer (due to its different suspension), while also having a practical cargo hold. The pricing was also attractive, as the North American base price of the Compact (318ti) was $20,370 USD which undercut the next-cheapest BMW 3 Series (the 318i saloon) by $5070 USD. The total production for 1993 to 1999 (ie excluding 2000, the final year of production) is 371,498. ==Second generation (E46/5; 2001)==