The 740i was a variant of the E38 BMW 7 Series that was introduced for the 1995 model year. The 740i, like its long wheelbase 740iL sibling, were initially powered by BMW's M60B40 engine. This 4.0L V8 engine was only used for two years as it suffered from compression problems. The M60B40 was replaced for 1997 by BMW's 4.4L M62B44 V8 unit, which featured improved torque and a wider powerband, but similar horsepower. This 4.4L engine saw a technical update for 1999. Known as the M62TUB44, this V8 unit featured improved torque and response, while maintaining similar horsepower ratings. The 740i was offered with manual and automatic transmission options sending power to the rear wheels. Production of the E38 740i ended in 2001, although the model series would continue life in the next generation E65 BMW 7 Series.