The BMW E34 is the third generation of the BMW 5 Series, which was produced from November 2, 1987, until 1996. Initially launched as a sedan in January 1988, the E34 also saw a "Touring" station wagon (estate) body style added in September 1992, a first for the 5 Series. BMW replaced the E34 with the E39 5 Series in December 1995, although E34 Touring models remained in production until June 1996.

The BMW S38 is a straight-6 DOHC petrol engine which replaced the M88 and was produced from 1984–1995. The S38 was originally produced for North America as an equivalent to the M88 with slightly lower power output. In 1989, power output of the S38 was increased and it became the worldwide replacement for the M88.