Patents were later filed on 27 October 1993 in the United States. On 27 April 1993, German design patents were filed featuring a pre-production prototype as a design representation. In February 1991, the final production design for the new 7 Series was approved by the board 36 months ahead of scheduled start of production for 17 February 1994. Wolfgang Reitzle), when Boyke Boyer's concept design was chosen and further refined into production form. From 1988 to 1990 styling work was done initially under design director Claus Luthe (through April 1990, taken over by Dr. In early 1988, development began on the third generation of the 7 Series. In 2001, the E38 was replaced by the E65 7 Series.

The E38 was the first 7 Series to be available with a diesel engine and the last to be available with a manual transmission. It was also the first European car to offer satellite navigation and the first BMW to offer an in-built television.

The E38 was the first car available with curtain airbags. Three wheelbase lengths were available - short (i), long (iL) and Limousine (L7). The E38 replaced the E32 7 Series and was produced with petrol and turbo-diesel straight-six and V8 engines, along with a petrol V12 flagship model. The BMW E38 is the third generation of the BMW 7 Series luxury cars and was produced from 1994 to 2001.

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