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Originally Posted by Vivek.
Fully agreed--so many posters are making claims that don't align with M GMBH history.
What're your thoughts on the "IS" trim level that was offered on the 3-series from e30 thru e92 (except e46?)? To me it seems like the precursor to the current M-performance models like an M340i; back in the E30 days you'd even get a real mechanical LSD on an IS model, something that's today reserved for the "proper" M cars. Basically, a 325is in 1990 would be the equivalent of an M340i today, IMO.
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You're forgetting that the "s" designation in the E30 didn't get you any more power from the engine, just sport seats, air dam, trunk-lip spoiler, and a couple of other touches. In the E36 "is" simply meant it was a 2-door car instead of the 4-door. Don't remember any "is" designation in the E46 and even the ZHP option didn't offer a separate model designation though it purportedly offered more power than the standard car. It wasn't until the E92/93 that 335is actually meant more power.
My recollection is that when BMW offered LSD, you didn't need to order a different package to get it in most cases. It was just an option. I know in my E28 535is most of those came with it but it was still the same option as it was in the regular 535i.