This 1986 BMW 325e is a European model that was imported from Germany to Texas in December 1985 and federalized in early 1986. Second owner acquired the car from a friend in April 2017, subsequently replacing its failed stock engine with a 3.2-liter S52 inline-six featuring an M50 intake manifold, Racing Dynamics headers, a 3” exhaust system, a catalytic converter, and a MagnaFlow muffler. The stock G260 5-speed manual transmission was retained and fitted with an S52 clutch kit as well as a short shifter. Additional modifications include a Z3M 3.25:1 limited-slip differential, E36 M3 steering rack, new Fortune Auto 500 Series coilovers, front subframe reinforcements, brake upgrades, and more. The car is finished in Zinnoberrot and features European-market exterior touches including wider license plate housings, fender markers, different headlight grilles, and slimmer bumpers compared to the US model. Modifications include additional side markers, clear Startec taillights, and blanking panels in place of fog lamps. 14″ Borbet Type C wheels are equipped, and brake work included fitment of new ventilated rotors and pads as well as a booster from an E21 3-Series. The previous owner revamped the suspension with new Fortune Auto 500 Series coilovers as well as front subframe reinforcements and new front control arms, tie rods, and sway bar end links. The cabin retains factory cloth seats with houndstooth inserts and features a manual-crank sunroof and windows, an M-Tech I steering wheel, an overhead check panel, a Euro analog clock, and vent mounted forward of the shifter in the lower center console. Several dash cracks are highlighted in the photo gallery. The previous owner added a CoolerWorx adjustable short shifter and a new European blower motor for the heater and air conditioner. A period Blaupunkt AM/FM cassette player was fitted by a prior owner. The instrument cluster features metric fuel and economy gauges as well as an MPH speedometer and an odometer reading 76k miles. The 3.2-liter S52 inline-six was reportedly sourced from a donor with approximately 78k miles. The previous owner had the ECU tuned by Kassel Performance, and an M50 intake manifold and M42 aluminum radiator have been installed. The exhaust system consists of Racing Dynamic headers, 3” piping, a catalytic converter, and a twin-tip Magnaflow muffler. Shifting is through a G260 5-speed manual transmission fitted with an S52 clutch kit as well as a Garagistic transmission brace and selector rod. The Z3M 3.25:1 limited-slip differential has been fitted with a finned cover. An E36 M3 steering rack was fitted during the engine installation.