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SMG II - Gearbox: Available only on the M3 (at the time of writing), SMG II is a clutchless manual gearbox drawing on BMW's William F1 transmission technology. With 11 separate programmes which can be operated by two paddles behind the steering wheel, by the traditional gear selector, or a mixture of both, it can also be driven in self-selecting mode where the gear changes take place automatically.

The Sequential Manual Gearbox, aka Sequential M Gearbox, Tiptronic. This is not an automatic, and its not a manual. It's a sort of mix between the two. There's no torque converter ( like an Automatic ), yet the driver can opt to have the onboard computers change gears for them. The clutch is also no longer required in this type of gearbox since the SMG-II computes the information, all gear changes are made via hydraulics which are electronically controlled.
Illustrated
Illustrated : M3 Shifter and Paddles
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In 1996, BMW became the first manufacturer to offer a clutchless manual gearbox on a commercial road car and half of E36 M3 owners specified it. SMG II, the latest system on the new M3, offers a significant leap forward with this technology.

Declutching and gear shifting is carried out electro-hydraulically following computations made by the engine management system and a new transmission control unit. A tap on the paddle, or a flick of the gear lever delivers instantaneous changes - it is 'shift by wire'. The fastest gear changes take place in an astonishing 80 milliseconds. Other similarities to the cockpit of a Formula 1 car include shift lights in the tachometer which light up to indicate the optimum shift point.
Illustrated
Illustrated : M3 SMG-II Shifter
A system unique to the M3 is 'acceleration assistant'. This system allows the driver to use the maximum possible acceleration from a standing start- rather like launch control in an F1 car. An additional, practical function of the SMG is the 'climbing assistant', which ensures that car will pull away on slopes without rolling backwards. This system can be used in both automatic and sequential mode.

The sophisticated SMG II incorporates 'Drivelogic' which offers 11 different driving programmes from 'relaxed' or 'winter' mode to 'very sporting'. Such flexibility really does tailor the M3 SMG to each driver's precise requirements.
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