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The replacement for the original M3 appeared at the 1992 Paris Auto Show. This E36 coupe model got the 3.0 L S50B30 straight-6 engine, which produced 286 hp (210 kW).
The first E36 M3 to be imported to the United States was the 1995 model, which received a 3.0 L engine with 240 hp (176 kW) and 305 Nm (225 ft-lb) (S50B30US) and a different suspension. The reasons for the less powerful motor were largely due to excessive costs for the US market with the original engine and possible difficulty in getting the Euro engine to pass emission tests. The 1996-1999 model years had displacement bumped up to 3.2 L, with 240 hp (176 kW) and 320 Nm (236 ft-lb) which is the same engine used in the early M Roadster and M Coupe. The 1996+ model is known for being more difficult to performance tune, due to slightly smaller intake manifold runners and more complicated electronic parts. It was also available as a sedan starting in model year 1997, and as convertible in 1998. Production of the sedan was halted in 1998, while the other models continued until 1999.
Source: Wikipedia (original)