The first M5 was introduced on the first-generation very late, when the car was almost out of production line.
For the second generation though, BMW decided to offer it from the start.

The battle for the sport-sedan market had begun when the BMW M3 and the Mercedes-Benz 190 2.5-16 started to compete against each other on the track of the DTM races. That also started a competition on the sales floor where both manufacturers succeeded to gain respect and appreciation from their customers. Customers who noticed that fast and luxurious could fit in the same vehicle.

The production of the second generation of the BMW 5-Series started in 1987, but it was launched at the beginning of the following year. In September 1988, the M-version was ready to meet its customers. The E34 M5 was not very striking. It looked more like a regular 5-Series with different wheels and slightly different bumpers and sills. That was the idea: to offer a performance vehicle that looked just like a regular one.

Inside there was a different story. Its front seats were bucket-type and offered good lateral support on cornering. The M-letter along with its three light-blue, dark-blue, and red lines on the dashboard. The electrically adjustable steering column was a rare feature on the market. On the center console, there was a trip-computer that looked weird with a lot of buttons and a small, LED, screen.

The magic was under the hood where a naturally aspirated 6-cylinder was installed. The M5 was offered with a 3.5-liter between 1988 and 1991. After that, a 3.8-liter unit was installed. These engines offered 315 hp and 340 hp, respectively. It was mated to a standard 5-speed manual up to 1994. The 6-speed manual was offered only for a year.