E46 M3 - Differential V1 vs V2 LSD Unit Part 1

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mrgizmo

mrgizmo

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There were 2 different LSD units in E46 M3, which result in output shaft play on different sides. V1 LSD was on pre 2005 and V2 was on 2005 and later. Run through some differences. This is part 1 of several.
Post 2005 BMWs (like E9x M3, E60 M5, etc), not just post 2005 E46 M3s had the V2 design. This was most likely Giken's attempt at solving the diff clunk and making the LSD unit more stout to handle more power from the later cars. Unsuccessfully.
V1 units are easier to rebuild, have play in the right/passenger side output flange, have the round cutout and clutches on the left half of LSD (side/spider gears on the right half), internals (clutches, side/spider gears) are stacked, once the cover is on the unit is a fixed width which means that once the LSD unit is shimmed in the diff (to provide proper ring to pinion wear pattern) it stays fixed and can be taken out to replace the clutches going forward without requiring a reshimming.
V2 units are a bit more difficult, have play in the left/driver side output flange, have the rectangular cutout and clutches on the right half of LSD (vs side/spider gears on the left half), require extra tools to open the screw on cover, pins for spider gears use c-clips, additional tools are required to recheck breakaway torque (depending on how tight you screw the cover back on), and due to the screw on nature of the cover which changes the stack height - require reshimming every time you want to replace the clutches.
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