1998 BMW Z Series: Rollover bars became standard this year, and more heavily bolstered sport seats joined the option list. Wood trim and the power top also were available as separate options.A high-performance M roadster joined its Z3 mates in spring of 1998, packing a 3.2-liter 6-cylinder engine borrowed from the M3 sedan and coupe

1999 BMW Z Series: A hatchback coupe joined the 2-seat convertible and the 4- cylinder engine was replaced by a 2.5-liter inline six for '99. The new hatchback came as the Z3 Coupe 2.8 and the M Coupe, powered by the 2.8- and 3.2-liter engines. Side airbags were now standard across the board and the 2.8-liter six gained four horsepower.

2000 BMW Z Series: Convertibles got revised tail styling and some new standard features, going on sale in spring 1999 as early 2000 models. Convertibles also gained an inner top liner and a new center console. All models got upgraded interior materials and a 3-spoke steering wheel.

2001 BMW Z Series: All models had more power for 2001. The Z3 2.5i convertible got a 184-hp 2.5 liter in place of a 170-hp 2.3. The 3.0i convertible and hatchback got a 225-hp 3.0 in place of a 193-hp 2.8. The high-performance M Series models' 315-hp 3.2 liter replaced a 240-hp 3.2. Optional on 2.5i and 3.0i models was a 5-speed automatic in place of a 4-speed. All Zs got redesigned wheels for 2001, plus BMW's Dynamic Brake Control. M models now included a low-tire-pressure warning system.

2002 BMW Z Series: An in-dash CD player was newly standard for 2002. BMW's Z4 would replace Z3 for 2003