The Z3 was the first vehicle built by BMW exclusively outside Germany and it was the first mass-produced Z-series model.
It was the first vehicle built by the German car-maker to be featured in a James Bond movie franchise.

The predecessor of the BMW Z3 was the Z1. There was not any Z2 on the market. The Z3 was based on a mixed platform based on the E36 3-Series model, but with the rear axle taken from the E30 due to its compactness.

Z3 was a typical roadster with a long hood, short cabin, and even shorter rear deck. Its rounded form and wide headlights covered by a clear-lens cover attracted a lot of customers. It was produced until 2003. On the front fenders, there was an exhaust vent with four slats, that resembled the BMW 507 roadster.

Inside, there was a two-seat layout with a big center console between the occupants. The central stack was slightly tilted toward the driver. With the dials and gauges carried-over from the E36 model, the Z3 was fit for sporty driving.

Inside, it offered sport-bucket seats for both occupants. On the center stack, BMW installed a stereo and the controls for the air-conditioning unit. The bucket-seats featured high bolstering to support the occupants while fast cornering.

Even if it featured a mixed platform/drivetrain, the Z3 was a fast and nimble car. It was offered with a choice of engines ranged between 1.8-liter and 2.8-liter before the facelift. In 1999 the car went through a mid-life cycle refresh and received some updated engines. The 2.0-liter inline-six was replaced by a 2.2-liter, and the 2.3-liter was upgraded to a 2.5-liter, while the 2.8-liter was increased to 3.0-liter. The M versions were a different chapter.

A high-performance Z3 model was introduced by BMW in 1998, the M Roadster.
Apart from the more powerful engines - 3.2L units borrowed from the updated M3 models delivering 321 hp - the new M Z3 Roadster featured a redesigned exhaust system, an aerodynamic body shape, revised braking and a new transmission. This model was available for both European and North-American. The US-sped models received an engine update in 2001, being fitted with a powerful 315-hp 3.2L S54 unit and a 5-speed manual transmission. The BMW Z3 M Roadster was discontinued in 2002, after it was produced in about 15,000 units.