The engine is installed longitudinally in the engine compartment. A 5- or 6-speed manual transmission or a 5-speed automatic transmission with or without the Steptronic system was used to transmit torque from the engine to the rear drive wheels.
The fully independent front suspension consists of a beam, MacPherson struts, wishbones and an anti-roll bar. The rear suspension is a multi-link design with a subframe and double elastic suspension of the main gear. The levers and drive wheels are geometrically located in such a way that they, together with the rubber supports, create the effect of joint control of the rear wheels and provide precisely calculated adjustment of the steering angle of the rear wheels.
The brakes are equipped with a vacuum booster. The brake mechanisms are disc brakes, and the ABS system is installed as standard.
The BMW E38 is equipped as standard with front airbags for the driver and front passenger, and from July 1997 also with side airbags.
Steering is of the "nut and bolt" type, with hydraulic booster.
