E38 1995

* E38 Production starts in 1994 for the 1995 Model Year replacing the E32. First E38s models were available with either a 2.5L Turbodiesel I6 3.0L or 4.0L M60 V8 or the 5.4L M73 V12 engine.
* US Model Range includes the 740i, 740iL and 750iL.

1995 E38 used a block made of Nikasil, which is Aluminium impregnated with Nickel and Silicon. Apparently, sulphur reacts adversely with the Nickel , causing very slight blemishes in the top few millimeters of the cylinder bore. The cylinder bores are crosshatched, which is the name given to a pattern scratched into the surface of the cylinder wall. These scratches help seat and seal the piston rings, allowing good compression. More information on Nikasil engine BMW's can be found here

E38 1996

E38 cars enhancing:
* 750i included Steptronic automatic transmission with manual shift mode.
* 728i and 735i was launched with traction control, ABS, alloy wheels, dual airbags, air-conditioning, leather upholstery, and electric front seats.
* 740i and 740iL E38 upgraded from the M60 4.0L to the M62 4.4L V8 engine.
* Steptronic and traction control become standard on 730i, 740i, and 740iL. Steptronic is not available in the North American market until 1999 when the 740i ZSP Sport Package was offered.
* An Alpina sports suspension, onboard TV and satellite navigation system were offered as options.


E38 1997

* E38 730i/730i SE and 735i/735i SE launched. Equipment includes central locking, front fog lamps and electric heated mirrors; 735i has rear head restraints and electric front seats; 730i SE has a sunroof; 735i SE has air-conditioning, cruise control and leather. *Revisions midway through the model year include front head airbags; automatic air-conditioning on 728i/735i; on-board computer on 728i; DSC III (Dynamic Stability Control) offered on 740i/740iL and 750i/750iL.
* xenon headlamps were included on 750i/750iL E38.
* 750iL E38 in move "Tomorrow Never Dies" - agent 007 James Bond.


E38 1998

* A new ZSP option (Sport Package) includes an Alpina suspension, multi-spoke alloys, sports seats and shadowline exterior trim.
* Revisions midway through the model year include new front and rear lights, a revised grille, black side sills and valances, and a remote locking with memory system
* Parking sensors become available on 728i, 730i,735i and 740i E38
* DSC (Dynamic Stability Control) now standard on all 7 series models
* Satellite navigation system become standard on 750i and 750iL


E38 1999

* 'Facelift' from 9/98 production featuring 'scalloped' headlamps, new front fenders with shorter turn signal lenses and side fascia improvements (including elimination of the visible jackpoints)
* The 735 and 740 E38 models receive an improved M62TU V8 engine with single VANOS variable valve timing. The 4.4 engine gets a marked increase in torque from 310 to 324 lb·ft (439 N·m) Horsepower remains at 282 hp (210 kW).
* A Sport Package becomes available for the 740i which includes: blacked-out exterior "shadowline" trim, Vavona redwood interior trim, 18-way adjustable sport seats, staggered 18-inch (460 mm) alloy wheels, a stiffer M inspired suspension with thicker front and rear anti-sway bars, Steptronic Transmission with higher stall-speed torque converter, and a higher 3.15 final drive ratio (versus 2.92).
* E38 750 receives an improved M73N 5.4 liter V12 engine making a slight increase in power and torque.


E38 2000

* A number of previously optional E38 features become standard. They include Xenon headlamps, rain-sensitive windshield wipers, headlight washers, GPS navigation system, and upgraded audio including DSP and 6-disc CD changer
* The sport package is extended to include the 740iL but without the same performance enhancing features as the 740i receives. The 740iL Sport maintains the same visual cues as the 740i Sport such as vavona redwood trim, shadowline exterior trim and 18" staggered alloy wheels. The iL comes standard with EDC for improved handling.
* In Europe, Adaptive Cruise Control became available as an option.


E38 2001

* Final year of E38 sales with production ending in July 2001.

The last E38 rolled off BMW's assembly line on July 27, 2001 to make way for the new E65. The E65 was received so poorly by consumers that sales of E38s increased noticeably in the car's final months of production as people moved to buy the car before it went out of production and used E38s increased in value.

* Body-colored side skirts and bumper facias, which were previously flat black
* Clear front and rear turn signal lights replace amber-colored lights.
* More previously optional features become standard, including a Motorola StarTAC or Motorola TimePort (depending on date of production) with BMW Assist telemetry system.
* Widescreen Navigation and a faster DVD based navigation computer were phased in from 9/00 production on all models.
* (US Models) Power folding exterior mirrors are now standard on the 750iL, and included in the optional convenience package on all other models.