BMW unveiled the third generation of the 5 Series, the E34, in December 1987, less than eight years after the introduction of the car’s second generation in 1981.
The Italian designer Ercole Spada made the first sketches for the third generation of the 5 Series in 1982, just a year after the car’s second generation was released. BMW didn’t want to play it safe this time with a mild evolution. As a result, it started from a blank sheet of paper, and the new model was far more advanced in every way. It was longer, more comfortable, and fitted with more powerful engines. Furthermore, it was the first 5 Series to be equipped with an all-wheel-drive system and the first to be available as a station wagon starting in 1992. In addition, the German automaker developed not just one but two M5 versions based on the E34.
While the front fascia still featured the design signature of a four-headlight styling, that was the only visual connection with the E28 and the E12, respectively. Its main grille, crossed by thin horizontal slats, was interrupted in the middle by BMW’s specific kidney-grille design element. Furthermore, the bumper was extended downwards with an apron and could be fitted with rectangular fog lamps.
Unlike its predecessors, which were penned in a boxy styling, the 1988 5 Series boasted curved lines that improved the vehicle’s aerodynamics. The ascending beltline and the raked and curved windshield also helped lower the drag coefficient. A rubber stripe crossed the vehicle front to back, visually connecting the front and rear bumpers. To further enhance the premium look of the 5 Series, BMW introduced body-colored door handles and mirrors. In addition, most versions featured standard alloy wheels. At the back, the 5 Series featured narrower taillights than its predecessor. Unlike that model, this one had them split between the rear quarter panels and the trunk’s lid.
Inside, the idea of the center stack tilted towards the driver was carried over from the E28. There, BMW installed the HVAC controller, the stereo, and the available onboard computer display. That could show the driver various data such as remaining range, average fuel consumption, average speed, and service intervals. Fronting the driver was a trapezoidal-shaped instrument cluster integrated into the dashboard, showing the classic BMW layout, with large dials for the speedometer and tachometer and smaller gauges for the fuel level and the coolant temperature. The bolstered front seats could keep their occupants during high-speed cornering maneuvers. In the back, the automaker installed a bench seat for three passengers.
Under its skin, the E34 marked several new improvements. It was the first to boast two versions for the M5 and the first available with adaptive dampers. The engine range started with a mundane 1.8-liter inline-four powerplant, which was available until 1996, while the top version, non-M, was the 540i fitted with a 5.0-liter V8 unit. In addition, the automaker offered the car with a choice of turbodiesel engines. BMW also introduced adaptive dampers and the Automatic Stability Control + Traction (ASC+T), which limited the power sent to the wheels to prevent them from spinning.