BMW E38 Release, History, and Its 7-Year Run

A Timeless Blend of Tech, Style, and Substance

Unveiled in 1994, the E38 7 Series wasn't just a flagship—it was a statement. Sleek, purposeful, and packed with cutting-edge features for its time, it marked a new era of sophistication for BMW. Whether you're drawn to its elegant design, its broad engine lineup, or the sheer presence it carries on the road, the E38 has earned its place as a modern classic. Here's how it evolved—and why it still matters today.

Launched in 1994, the E38-generation BMW 7 Series marked a serious leap forward – and it looked the part, too.

There's no getting around it: the E38 is a complex machine. With all that '90s tech on board, age can be a factor – even the youngest examples are now over 20 years old. BMW famously claimed the E38 had more computing power than Apollo 11, and honestly, we believe them. Still, it remains a standout choice in the modern classic world – and easily one of the best-looking saloons ever built.

At the time, some critics argued it didn't push far enough past the E32, but hindsight has been kind. The E38 launched with two V8 options: the 730i and 740i, using 3.0- and 4.0-litre engines inherited from the outgoing E32. These were paired with a clever five-speed automatic that adapted to your driving style. And if you lived outside the UK, you could even spec a rare manual gearbox.

As with any proper 7 Series, the E38 was brimming with luxury kit. Much of it came standard, but the real magic was in the options list – TV screens, sunblinds, "picnic" tables comfort seats, adaptive dampers… it was all there if you wanted it.

The big hitter, the 750i, joined the range in September '94. Under the bonnet was an updated version of the previous-gen V12, now stroked to 5.4 litres and good for 326hp and 361lb ft. That was enough to push this luxury heavyweight from 0–62mph in just 6.6 seconds – seriously brisk for the time. If you wanted limo levels of space, the 750i and 740i were also offered in long-wheelbase iL form, stretching the chassis by 14cm.

Rounding out the lineup, the 728i arrived in September '95. With its smooth straight-six making 193hp and 207lb ft, it offered a nice balance of performance and refinement. Compared to the 730i's V8 (which lacked VANOS and made 218hp), the 728i was more efficient too. And for buyers chasing fuel economy, the diesel variants were well worth a closer look.

The 725tds was strictly a European affair—and a rare one at that. With just 143hp on tap, it was never going to set any speed records, but its exclusivity more than makes up for it. Fewer than 10,000 were built over four years, making it a real unicorn today. Two other diesel variants—the 730d and 740d—also skipped the UK entirely. The 730d used the familiar 184hp straight-six from the 330d/530d, while the 740d packed a 4.0-litre twin-turbo V8 good for 245hp and a hefty 413lb ft of torque. Only 12,336 units of the 730d and a mere 3,450 of the 740d ever left the factory.

In March 1996, BMW shuffled the lineup. The 735i was introduced alongside a revised 740i, while the old 730i quietly exited stage left. The new 735i featured a 3.5-litre V8 making 235hp and 236lb ft of torque. Thanks to the addition of VANOS variable valve timing, it was noticeably more flexible across the rev range. The updated 740i now used a 4.4-litre version of the M62 V8, also with VANOS, producing a solid 286hp and 310lb ft. Importantly, all 735i and 740i models built from March 1996 onward used the revised non-Nikasil engines—so there's no need to worry about those infamous cylinder lining issues.

Come September 1998, the E38 got its mid-life refresh. The facelift brought new headlamps styled after the E46 3 Series and jewel-style rear light clusters. Subtle changes elsewhere modernised the look, but the real gains were under the bonnet. Both the six- and eight-cylinder engines were updated: Double VANOS was now standard, giving variable valve timing on both intake and exhaust. The M52 six-cylinder became more torque-friendly lower in the rev range, while the V8s now made 254lb ft (735i) and 324lb ft (740i), respectively.

That same year, BMW introduced the M Sport Pack. It was more than just a styling exercise—18-inch alloys, sport suspension, body-coloured trim, de-chroming, M steering wheel, sports seats, and an anthracite headliner gave the car serious presence. By March 2001, it became a full model variant under the "Sport" nameplate.

As for how it drives? Back in 2008, BMW Car magazine summed it up perfectly:

"The Seven can still make a pretty good fist of attacking a challenging back road. The Servotronic steering can give a little bit of a remote feeling about the helm, but once you get used to the car's abilities it isn't really a problem. What the E38 does give you in spades though is oodles of space, both for passengers, luggage and cabin storage. You could quite easily apply the E39's 'Best car in the world' tag to the Seven and just add 'but a bit bigger'."