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In the United States, the E46 M3 competed in the [[2000 American Le Mans Series#GT Standings|2000 American Le Mans Series GT category]] and finished third in the championship. The straight-six engine was viewed as uncompetitive compared to the [[Porsche 911 GT3#996 GT3|Porsche 996 GT3]], therefore BMW began to develop a new M3 racing car based around a more powerful engine. The resulting E46 GTR racing car was introduced in February 2001 and was powered by a {{convert|330|kW|hp|0|abbr=on}} version of the {{convert|3997|cc|L|1|abbr=on}} [[BMW P60B40|P60]] V8 engine.<ref name="M3 GTR Legends of the Autobahn2">{{cite web |title=2001 BMW M3 GTR Race and Road Cars To Be Presented at Legends of the Autobahn Concours D'Elegance |url=https://www.press.bmwgroup.com/usa/article/detail/T0229402EN_US/2001-bmw-m3-gtr-race-and-road-cars-to-be-presented-at-legends-of-the-autobahn-concours-d%E2%80%99elegance?language=en_US |access-date=25 August 2017 |website=press.bmwgroup.com}}</ref><ref>{{cite web |date=March 2003 |title=BMW M3 GTR |url=http://www.caranddriver.com/reviews/bmw-m3-gtr-specialty-file |access-date=25 August 2017 |website=Car and Driver}}</ref> With a more powerful engine than the straight-six powered M3 versions (which were outpaced by the competition), the GTR won the 2001 [[American Le Mans Series]] GT category, driven by [[Jörg Müller]].
The eligibility of the GTR was the subject of controversy, with some rival teams believing that the GTR was an in-house prototype vehicle rather than a production model available for purchase by the general public. The ALMS homologation rules for 2001 required the M3 GTR road car to be sold on at least two continents within twelve months of the rules being issued, which BMW claimed to fulfill by stating that 10 GTR road cars were available for sale. The ALMS rules were altered for 2002, now requiring that 100 cars and 1,000 engines must be built for a car to qualify without penalties. The GTR road car was never intended for production on this scale, so BMW withdrew the GTR from competition at this point.
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[[File:2022 BMW M3 Touring.jpg|left|thumb|G81 Front (Touring)]]
The full [[BMW M|M]] version of the [[BMW 3 Series (G20)|G20 3 Series]], powered by the [[BMW B58#S58 engine|BMW S58]] turbocharged straight-six engine that debuted in the [[BMW X3#Third generation (G01; 2017)|G01 X3 M]].<ref>{{cite web|title=2021 BMW M3 and M4: Everything We Know|url=https://www.roadandtrack.com/new-cars/future-cars/a29465143/2021-bmw-m3-m4-g80-details-rumors-photos/|website=Road & Track|access-date=31 October 2019|date=28 October 2019}}</ref><ref>{{cite web|title=New BMW M3 not until 2021|url=https://www.carsales.com.au/editorial/details/new-bmw-m3-not-until-2021-121300/|website=www.carsales.com.au|access-date=31 October 2019}}</ref> All-wheel drive ([[BMW xDrive|xDrive]]) has been announced as being optional on the new M3,<ref>{{cite web|title=Upcoming BMW G80 M3 will come with an imposing kidney grille|url=https://www.bmwblog.com/2019/08/07/upcoming-bmw-g80-m3-will-come-with-an-imposing-kidney-grille/|website=www.bmwblog.com|access-date=23 September 2019|language=en|date=7 August 2019}}</ref> which would represent the first time that an M3 has used a drivetrain layout other than rear-wheel drive.<ref>{{cite web|title=New 2020 BMW M3: choice of 480 or 510bhp, 2wd or 4wd confirmed|url=https://www.carmagazine.co.uk/spy-shots/bmw/new-2020-bmw-m3-codenamed-g80-revealed/|website=www.carmagazine.co.uk|access-date=18 September 2019|language=en}}</ref> A manual gearbox will be available only with rear wheel drive, and is the only transmission available on the standard M3 model.<ref>{{cite web|last1=Perkins|first1=Chris|title=BMW M Boss Confirms Rear-Drive Manual Version of Next M3 and M4|url=https://www.roadandtrack.com/new-cars/future-cars/a29878797/bmw-m3-m4-g80-manual-rwd-confirmed/|website=Road & Track|access-date=3 January 2020|date=22 November 2019}}</ref>
It will also be available as a Touring (estate) model, marking the first time BMW has offered an M3 Touring.<ref>{{cite web |last1=Hoffman |first1=Connor |title=Here's the 2021 BMW M3 Touring, and We Really Want It in the U.S. |url=https://www.caranddriver.com/news/a33796509/2021-bmw-m3-touring-wagon-video/ |website=Car and Driver |access-date=26 August 2020 |date=25 August 2020}}</ref> The BMW M3 G80 is on sale as a 2021 model, with the initial prototypes tested at the Nürburgring alongside the [[BMW M4#G82 generation (2021-)|BMW M4 G82]]. It was officially unveiled on 23 September 2020 alongside the new [[BMW M4|M4]].
=== M3 Competition ===
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