In December 1998, at the Birmingham Autoshow, the prototype for the E46 was presented by Alpina. It was equipped with the engine of the B3 3.2.

At Geneva motorshow in 1999, Alpina introduced their variant of the E46 – the B3 3.3. The B3 is a real bargain, “only” 88500 DM for the saloon and 90600 DM for the coupe which was introduced at the IAA 1999 in Frankfurt.

The Touring version was introduced at Geneva Motorshow in 2000 and the convertible followed at the Autoshow in Birmingham in 2000.

At Geneva motorshow in 2001, Alpina introduced the B3 3.3 Allrad. This model continued in production after the B3 3.3 was replaced by the B3 S.

The B3 3.3 engine is based on the S52B32 engine from the US-spec E36 M3 3.2 with 240 hp. The cylinder head and the single-VANOS system have more in common with the BMW M50 engine than any M-engine, with a regular M50 intake and hydraulic valve lifters.

Alpina increased the bore to 86.4mm as well as a longer stroke (94mm). The cylinder head is tuned in traditional fashion as well a new exhaust manifold. Extremely light pistons as well as a newly developed crankshaft have been used in conjunction with a new torsional-vibration damper, sustaining permanent revs of up to 7200 rpm with ease. The engine produces 280 bhp at 6100 rpm and a torque of 335 Nm at 4300 rpm. The new B3 3.3 is also very frugal, only 9,9 litre/100 km in mixed driving conditions

The standard gearbox is a Getrag six-speed unit, optionally a five-speed Switch-Tronic box is available.

The suspension has been uprated with stiffer springs and modified dampers. Tires are Michelin Pilot Sport, 225/40 ZR18 at the front and 255/35 ZR18 at the rear.

The B3 3.3 uses 330i disks and calipers, with upgraded brake pads.

Inside the B3 3.3 is equipped with sport seats in Alpina design leather, new instruments with blue background and red needles, luxury wood “Myrtle”, a hand-stitched leather steering-wheel, Alpina floor mats, Alpina door sills and a silver-plated production plaque. The exterior changes are very subtle, front and rear spoiler lips are fitted.

Alpina claims a 0-100 km/h time of 5,7 seconds for the manual and 6,8 for the Switch-Tronic version. The top speed is more than 265 km/h.

However, Auto Motor und Sport´s test shows that the B3 is even faster. 0-100 km/h in only 5,5 seconds, 0-160 km/h in 13,1 seconds and 0-200 km/h in 21,4 seconds. The coupe is just as fast but has a higher top speed. The Touring accelerates from 0-100 km/h in 6,1 seconds and a top speed of 261 km/h.