We know, the suspense is killing you. You're consumed wondering if eurotuner's M325i project car - armed with a host of budget-minded speed parts - will outperform a stock '95 M3 on the track. Well, hold onto your seat. You're clutching the penultimate chapter - Part 3 of a four-part series - so we're not quite there yet. But it'll be worth the wait.
In the meantime, we promise this episode will keep you sufficiently engaged, as it contains the tricks and tips we used to upgrade our '93 325is coupe's brakes, shifting, exhaust and lighting. Building a project car is like constructing a house: You start with the foundation (suspension) then build slowly, eventually tweaking all critical components to maximize performance - within the parameters of good sense and fiscal responsibility, of course.
Last month, if you recall, we revamped the suspension, converting the front underpinnings with M3 components bolstered by H&R springs, sway bars and Koni adjustable dampers - all sage recommendations from our E36 guru, Bob Tunnell of Bimmer Haus Performance in Broomfield, CO. After suspension modifications, Tunnell focused his attention on braking performance.
Ate Power Discs, with their...
Ate Power Discs, with their heat-dissipating grooves, are an inexpensive upgrade compared to big-brake conversions.
Braking has always been a focus of BMW engineers as well, with the E36 a prime example. The 325is comes stock with power four-wheel discs, aided by ABS. Front rotors are ventilated, 287mm in diameter; rear rotors are solid, 279mm. While big-brake conversion kits are popular, we went for a low-key and pocketbook-friendly approach: Ate grooved Power Discs in front, Goodridge stainless steel braided brake lines, Hawk Performance HPS Plus front pads and Ate Super Blue brake fluid. (The brake lines and pads were sourced through The Tire Rack's Upgrade Garage.) This combo promised to deliver a more solid feel to the pedal and improved braking performance (both stopping power and fade resistance) - crucial factors for our M3 challenge.
UUC Ultimate Short Shift kit...
UUC Ultimate Short Shift kit comes complete with all hardware and detailed instructions.
With the brakes handled, we addressed the transmission and shifting. The 325i five-speed transmission is a Getrag Type C; ratios are 4.23/2.52/1.67/1.22/1.00:1. As accomplished as this 'box is, E36 tuners have always felt the shifting action is a bit sloppy for performance applications. Enter the short-shift kit. Such kits feature a shift lever that changes the fulcrum point, thus "shortening" the distance the shifter travels to select a gear. While many BMW tuners offer a short-shift kit, we selected the Ultimate Short Shifter from UUC Motorwerks. Made from CNC-machined 303 stainless steel and 6061-T6 aircraft-grade aluminum, the kit comes with all necessary hardware and detailed instructions. And, like our previous E30 Budget Bimmer project, we topped off the shifter with UUC's handsome RK3 stainless steel knob. Not only does the RK3 look cool, its extra heft compensates for the reduced mechanical advantage inherent in the shorter shift lever.
UUC also supplied two additional, less glitzy shifting components: reinforced, firmer transmission mounts and a clutch stop. Stock E36 tranny mounts are notoriously soft (which explains that silky-smooth engine feel) - so soft that in high-stress competition applications they can deflect enough to throw off the accuracy of the shift gates. A missed shift spells disaster if the engine overrevs. Anybody using an E36 on the track or in autocross should consider upgrading to firmer tranny mounts (if the rules allow).
The UUC clutch stop is another nifty piece. It's an adjustable clutch stop that permits the driver to specifically set where the clutch pedal stops just after the clutch mechanism disengages. Once set properly, the gas pedal may be applied immediately after the clutch pedal is released. This lets the driver shift with one less item to worry about.
 A UUC transmission mount (left)...  A UUC transmission mount (left) and a stock rubber mount (right). |  Hawk Performance HPS Plus...  Hawk Performance HPS Plus pads are well suited to the Ate Power Discs. The combination offers shorter braking distances and increased fade resistance. |  While it isn't strictly a...  While it isn't strictly a performance modification, we did install new rotors and pads on the rear to ensure everything was at its best |
 Stainless steel brake lines...  Stainless steel brake lines from Goodridge give firmer brake-pedal feel. The kit comes with all six lines for front and rear brakes. |  Installation of the UUC Short...  Installation of the UUC Short Shift kit begins with removal of the stock shift knob and lever boot. |  A side-by-side comparison...  A side-by-side comparison of a stock E36 shift lever and the UUC Short Shift lever. Note the added distance between the end bushing and pivot ball on the UUC lever compared to stock. |
 The completed UUC Short Shift...  The completed UUC Short Shift kit assembly awaiting installation. |  The new tranny mounts fitted...  The new tranny mounts fitted to the crossmember. |  |