Don's S54-Swapped E46: Backroad Blitzer and Golf Club Carrier

Though this doesn’t get picked for track work much anymore, Don’s understated E46 wagon fulfills the role of dual-purpose performance car better than most that try to do that challenging task. First of all, this subtle 325i comes from good stock. Don definitely has high standards when it comes to trackable BMWs, which means that this wagon, admittedly the least focused car in his fleet, is capable on both canyon romps and casual track days.

With an S54 powering it, a few important handling modifications, and an extremely inconspicuous exterior, this swapped E46 wagon is one of those machines which make people double-take. Not at its appearance, but at the way it’s able to move in a way that a wagon shouldn’t. Once they’re able to witness what this car, a machine which looks a dentist’s daily, is truly capable of, they’re left shaking their head in disbelief.

Only a set of APEX wheels hint at a sportier character than the demure exterior suggests.

Ticking Boxes

“Remember, it is a wagon,” Don chuckles. Don has 911s, plenty of M cars, an S2000 or two, and a few Benzes making up his enviable collection of cars. Clearly, he’s got a wide range of interests and an extensive number of boxes to check.

Many cars are ruined by trying to make them equally capable at grocery getting and cornering. They’re asked to do too much. Perhaps this car’s secret is that it’s never tried to be exceptional. It’s not the fastest machine around and it’s far from Cadillac-plush, but it hovers around the middle of the spectrum and has a wide enough range of capabilities to make it genuinely enjoyable in many situations. In other words, it’s comfortable enough for a trek to the supermarket and taut enough to entertain if that supermarket is at the other end of a mountain pass.

An interior made livable with lots of tan leather and strong air conditioning. Some wouldn’t like the abundance of black plastic against the tan leather, but it suits this two-sided car well.

A Strong Compliment

Going to the lengths of swapping this engine into a uninspiring 325i might make little sense to some, but when the swap was already done and the entire package went on sale for peanuts, it’s not hard to see why Don was intrigued. In addition to the motor, it also had the Getrag box and the differential from the M3. When he learned it’d already been BARred, he had no trouble writing a check.

As he quickly learned, the new motor complements the car wonderfully. Unlike the M54B25, the S54 has a good amount of low-end before it really wakes up. It’s drivable and at normal operating speeds, it works almost as if it were the factory powerplant. True, it’s a revvy engine, but even in stock trim, it works far better in the city than the standard engine. It’s not just torque, but its more aggressive throttle mapping, combined with the 325i’s heavily weighted throttle pedal, that makes it feel eager and athletic.

A swap so clean it looks factory.

Funnily enough, the engine note doesn’t connote any great power; the S54 flows through the 325is’ twin exhaust, lacking that familiar raspy buzz offered by the four-pipe arrangement it’s usually connected to. That fits with the general character, as does the restrained coat of Grey Green.

A tick over 3,300 pounds makes it a middleweight with cornering potental, so Don figured the wagon deserved a little bit of work on the suspension. Though he grabbed most of the parts from the leftover bin, he made it change direction competently. A set of AST 4200 two-way coilovers, Ground Control camber plates, delrin bushings, a set of swaybars, and a decent alignment is all it really needed to be sharper and surefooted.

Sharper, but far from perfect; the balance is a little off, but in an endearing way. Don hasn’t not forgotten the first few track days at Laguna Seca. The rear end would start to rotate at higher speeds—not the most encouraging trait—and the front would push at slower speeds. While these could be tuned out, Don decided to focus on tracking other cars. For now, the E46 does the dual-duty business better than the other cars, and that’s why it’s kept a place at the table. It’s just fine for spirited driving, but it’s better enjoyed as a hauler of golf clubs. After all, it does have the biggest trunk in his collection.

Though it doesn’t stand out in this company, it has a versatility that few cars can match.