The third generation of BMW 5 Series was introduced in 1988. Known as the E34, this new generation of 5 Series was available as a sedan or a station wagon. The E34 was offered with a variety of engines, including inline 4, inline 6, and V8, as well as a diesel option. The E34 was the first 5 Series generation to offer four wheel drive as an available option. E34 5 Series variants include the 540i, 535i, 530i, 525i, 525iX, 525tds, and the 520i, as well as the M5. Built until 1996, the third generation 5 Series was replaced by the E39 5 Series starting in 1995.