With the introduction of the E30 3-series, Alpina phased out the previously popular four cylinder engines and focused their efforts on the small-block six-cylinder models. All of these cars were based on the same platform with different versions of the same basic engine.

The C2 2.7 had been among Alpina’s most popular E30 models. In 1986, BMW introduced the 195bhp M3 which significantly undercut the 210hp C2 2.7 in price. Until that time the C2 2.7 had been the most powerful series-produced E30 – which justified a high price. This price also supported the expensive production process which involved Alpina buying a complete 325i and rebuilding it to C2 2.7.

Now this no longer was financially viable, Alpina requested BMW to provide half-finished 325i bodyshells for C2 2.7 production. This wish was granted, which marks a major step in the relationship between Alpina and BMW. To differentiate the new – cheaper – model from its predecessor it was renamed B3 2.7.

The B3 2.7 was only available with catalytic convertor and 204hp.

Between 1989 and 1991, in total 259 examples of the B3 2.7 were built.