Owing to high tax charges levied on automobiles with a displacement of more than 2.0 litres in Italy, the BMW M3 with a capacity of 2.3 litres was not an economical proposition for potential customers there. BMW therefore developed the BMW 320is especially for the Italian market. The sports car was fitted with a revised version of the S14 engine and supplied as a two-door or four-door car. In spite of the reduced displacement, it provided similarly good driving characteristics to the BMW M3. However, the appearance was clearly distinguishable from the BMW M3 because it was not as wide. The wolf in sheep's clothing only revealed its athletic nature through the rear spoiler.