The Z4 M Coupe/Roadster was introduced in 2006 and is powered by the S54 straight-six engine shared with the E46 M3. The S54 was also on the Ward's 10 Best Engines list for 2001 through 2004.The engine in the North American Z4 M models are rated at 330 hp (246 kW) at 7,900 rpm, 3 hp less than the North American M3. In other markets, the power output is the same 252 kW (338 hp) as the M3. The engine had BMW double VANOS system and a compression ratio of 11.5:1. The torque generated by the engine amounted to 355 N⋅m (262 lb⋅ft) at 4,500 rpm. The torque was available from 2,500 rpm.

The Z4 M uses hydraulic power steering, unlike the electric power steering used by the rest of the Z4 range. The Roadster used the E46 M3 steering rack, the Coupe the faster M3 CS/CSL rack. Other changes include a wider front track, revised front suspension, wider non-runflat-tires (measuring 225/45 at the front, 255/40 at the rear), and steering geometry. The brakes and the entire rear axle was too from the M3 CS/CSL.

The M coup
e's production began at the Spartanburg BMW plant in Greer on 4 April 2006.

The worldwide model breakdown for the E86 Coupe over its life cycle (2006–2008) is 12,819 Z4 3.0si coupés, and 4,275 Z4M coupés. Even from its introduction in 2006, the Coupé was relatively rare: In its first 13 months on the market, the roadster outsold it at a ratio of 7 to 1. For the UK 3.0si coupe model, 1598 cars were produced with an manual transmission and 1998 cars with an automatic transmission.

The North American (United States and Canada) production total for coupe models is 3,919, comprising 1,815 M-Coupes and 2,104 were the 3.0si Coupes. Of the 2,104 3.0si Coupes produced for the North American market, 1,276 were automatics and 828 were manual transmission; the Z4M was only available with a manual transmission.

In North America, the 3.0si coupe was only available for sale in the United States although a number were imported into Canada from the US.

The yearly breakdown of North American market coupe production totals are as follows

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