The M340i Is Dead. BMW's 437-HP M350 xDrive Replaces It, With Yellow Lights and a Drift Mode That Arrives Later

The M340i is gone. BMWBLOG put it about that plainly when the new eighth-generation 3 Series was revealed at the end of September, and its replacement has a new name: the M350 xDrive. BMW positions it as the entry point into BMW M. Orders opened Sept. 30, and production is set to start in November at Dingolfing, according to BMWBLOG.

437 hp, all-wheel drive, no manual

Power comes from a 3.0-liter turbocharged inline-six with mild hybrid help. BMW rates it at 437 hp in the US (443 PS in Europe), and AutoGuide lists 428 lb-ft. A 13-kW (18-hp) electric motor lives inside the eight-speed Steptronic Sport automatic. The car is xDrive only and automatic only. AutoGuide reports BMW's 0-60 mph time as 3.9 seconds, and top speed is electronically limited to 155 mph.

The chassis gets the hardware you would expect: standard adaptive M suspension, variable sport steering and an M Sport differential. BMW added a new tower-to-front-end strut and a V-shaped strut at the rear axle for stiffness. M Sport brakes use four-piston fixed front calipers, painted blue as standard in the US with red optional. The standard 19-inch 1139 M wheels come in Bi-color Jet Black, with 20s and Bridgestone sport tires optional. It is not light. BMWBLOG lists 1,860 kg on the European DIN scale, 180 kg (about 400 lb) more than a 320.

Drift Moment, coming later

The headline feature is not there yet. Drift Moment sends all of the power to the rear wheels with DSC fully off, and AutoGuide says it does that by decoupling the front driveshafts. You turn it on through the Central Display. BMW says it will arrive by software update during 2027, including for cars already delivered, and BMWBLOG says it is exclusive to M Performance models.

A software update that turns an all-wheel-drive sedan into a rear-drive one is either the most modern thing BMW has done or the most BMW thing it has done in years. Either way, it is going to make for a lot of parking lot videos next year.

Yellow lights are back

The M350 is the only new 3 Series with M Yellow Lights. In the US the daytime running lights glow yellow and switch to white when the headlights come on, and the feature is optional here while it is standard in Germany. The grille gets an M Performance graphic with three vertical lines instead of two, and the car wears black mirror caps, a gloss black rear spoiler, darker taillight graphics and four exhaust tips. The Iconic Glow lighting package is standard, and there are 11 launch colors, including M Le Castellet Blue, which is exclusive to the 3 Series range.

Inside is a 17.9-inch Central Display running BMW Operating System X with Alexa+ integration, M Sport seats with an illuminated M logo and an M steering wheel with red accents, an M mode button and a Boost mode. A panoramic glass roof is standard, and there is no sliding sunroof option.

Price and the rest of the lineup

BMW's US price for the M350 xDrive is $65,900. Below it, AutoGuide lists the rear-drive 330 at $49,900 and the 330 xDrive at $51,900, both with a 255-hp turbo four and 295 lb-ft, good for 0-60 mph in 5.9 seconds. The new 3 Series reaches US dealers in early 2027, AutoGuide reports.

For the people who bought M340is to tune, the M350 changes the math. There is more power from the factory, all-wheel drive is standard, and the rear-drive party trick arrives later as a download. What it does not have is a third pedal, and BMW did not show a new M3 alongside it.