In 2002, BMW will be the third generation of S50B30 E46M3 engine upgrade and named S54B32. Using 3.2L inline six-cylinder naturally aspirated engine, engine parts hardened, intake and exhaust DoubleVANOS bilateral system, and electronic throttle new electronic program so that the maximum power of 256kW (348ps), the maximum torque to 365Nm, liter power reached 80kW (108ps), BMW was the highest power-liter naturally aspirated engine, but also the last generation M3 inline six-cylinder naturally aspirated engine. As the BMW Z cars in the only remaining fruit, released in 2006 Z4M The engine models are also equipped.
BMW ever confident claiming not use turbocharging technology, but later had to compromise to the market demand, in 2008, equipped with S65B40A4 the fourth-generation M3 .0LV8 publishing engine, BMW announced that the classic S54B32 engine completed its historic mission, officially retired, this is a BMW M3 almost let the whole world fans sigh news.