BMW E36 Stripped-Down With M5 Diff, LS Engine Is A Drift Monster

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The car in the video above started out as a modest 1995 BMW 325 sedan. It was headed for the dump when Carl Balzer, owner of Hidden Motorsports, found and bought it, hoping to turn it into something much more fun to ride. We’re betting that he achieves his goal with this tuned E36. He didn’t buy it stripped down, but the project grew into what it is today.

While BMW seems to have seen better days with the new one Upper Equipment video, especially some of the remaining body panels, the assembly is secure, and NHRA certified thanks to the roll cage, safety harness, and safety seat. According to its owner, he designed it to go faster than eight seconds legally, and it certainly has the power-to-weight ratio to do that.

Powering the sedan is a twin-turbocharged LS engine which cannot be contained within a typical bonnet. The road BMW produces 1,200 horsepower (894 kilowatts), sending power to the rear wheels via the T-56 Magnum transmission and rear differential from the M5. It also runs on the E85.

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After Balzer finished building, he drove the car to the Ohio State Patrol for a proper inspection. He wanted to make sure the car was road legal, and almost everything, except for the exhaust, the police thought was too loud for public roads. Everything else is up, including the exterior lights.

Rob Dahm, Upper Equipmentthe tuning correspondent, is behind the wheel in the video, taking the BMW to Flat Rock Speedway south of Detroit for some fun on the track. However, it didn’t go according to plan, with Dahm’s smoky drift damaging the differential and leaking fluid in its path. However, that wasn’t the end of the journey as the car was still driveable, Dahm brought it back for even more drifting action.

BMW never designed the E36 to handle the 1,200 horsepower of the American V8 engine, but Balzer made it happen. It takes time to build, and while cars evolve from drag racers to drift machines, their real purpose is not. According to Balzer, “The point of cars is to have fun.”

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