Initially launched as a saloon in January 1988, the E34 also saw a "Touring" station wagon (estate) body style added in September 1992, a first for the 5 Series.

BMW replaced the E34 with the E39 5 Series in December 1995, although E34 Touring models remained in production until June 1996.

The E34 M5 is powered by the S38 straight-six engine and was produced in saloon and wagon body styles.

Development ran from July 1981 to early 1987, with the initial design proposal penned by Ercole Spada in 1982.

Following Spada's departure from BMW and styling approval in 1983, J Mays finalized the design for production in mid-1985.

Special attention was paid to aerodynamics, with the E34 basic saloon having a drag coefficient of 0.30.

The all-wheel drive 525iX uses a rack and pinion steering system along with front suspension similar to the E30 3 Series 325iX model.

[18] All front suspension components are steel, except that the lower control arms on some models are aluminum.

[19] Rear suspension consists of semi-trailing arms with coil springs integrated in a strut assembly.

Wiring had a big influence to the amount of possible options and functions of a car.

It was powered by the BMW M50 engine and was the first 5 Series to use a rack and pinion steering system.

The V8 version, which replaced the six-cylinder 535i in the lineup, was powered by the new BMW M60 V8 engine and was available with a 5-speed manual or 5-speed automatic transmission.

Despite the '535i' model designation and '3.5' casting on the intake manifold, the BMW M30 engine found in the E34 535i actually has a displacement of 3.4 litres (207 cu in).

In 1993, the 540i model was added to the top of the 5 Series lineup, powered by the BMW M60 V8 engine and available in both Saloon and wagon body styles (the latter not in US).

This 3.8 litre version of the M5 was first seen by the public at the 1991 Frankfurt Motor Show, where the E34 M5 Touring also saw its debut.

[22] After unveiling the BMW E1 and E2 concept car electric vehicles in 1992, BMW began a project to show it was possible to make a full-sized electric car, despite the obstacle of the weight of the lead-acid battery technology at the time.

To assist the electric drivetrain, the 518iev also had a four-cylinder petrol engine and a continuously variable transmission, a configuration similar to the first production hybrid cars produced by other manufacturers several years later.

[31] BMW built at least one fully functional E34 prototype, which was tested in the late 1990s by Deutsche Post and others.

It includes the features of the North American 540i M-sport, plus upgraded Euro-spec M5 brakes, 18-inch M-parallel wheels, and various trim pieces.

[32] The 540i LE (i.e. Limited Edition) saloon was sold in Australia and the United Kingdom.

[35][36] The 540i LE included the interior from the M5, "throwing star" M-System II wheels, EDC suspension with self leveling rear, Servotronic power steering, and front air dam.

70 of these 540i LE saloons were produced, all with a manual transmission, each individually numbered using an engraved metal plaque stuck onto the centre console beneath the handbrake lever.