BMW introduced the Manual Sedan version of the E36 M3 in 1994. The M3 sedan was created in part to maintain a performance sedan as part of BMW's model lineup due to a gap between E34 M5 and E39 M5 production. Like all E36 M3s, European versions had more power than their North American counterparts. The European 3.0L inline six used between 1994 and 1995 produced 286hp, while the later 3.2L inline six produced 316hp. This contrasted with the North American variants, which used a 240hp 3.0L in 1995, which grew in 1996 to 3.2L without any significant increase in power, and only marginal increases in torque. Although initially, all manual E36 M3 sedans featured a 5 speed manual gearbox, European examples recieved a 6 speed manual beginning for the 1996 model year while North America examples retained the 5 speed unit. Production of the E36 BMW M3 Manual sedan lasted until 1998. The following generation E46 M3 did not feature a sedan variant.