BMW Differential and Gearing Upgrades for BMW E39 M5 S62 5.0L

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Upgrading various parts of the differential can have tremendous benefits in your car's performance. It's easy to forget that the differential is a source for making your car faster and handle better so it's often overlooked. The engine is not the only place to make the car faster. Our differential options vary from gearing upgrades to limited slip conversions. You can purchase the ring & pinion gear sets on their own (professional installation required) or have us build a diff around your own specifcations. The options are almost endless! Every custom-built diff is fully rebuilt with seals and bearings. We also design and supply bushing options to reduce driveline wind-up, finned differential covers for better cooling, and more!

Ratio Changes - Changing the differential gearing is one of the best and most-effective upgrades you can make on any BMW (old or new). By using a shorter (numerically higher) final drive ratio you are increasing your RPM relative to road speed - this puts you in a more powerful RPM range than before! Since you're in a 'meatier' part of the power band you're now putting down more power/torque to the ground. If you can trade outright top speed for faster acceleration at daily speeds then this is the perfect upgrade for you.

Limited Slip Upgrades - Sadly, many BMWs today are not equipped with a limited slip (posi-traction) differential. BMW has tried to compensate by using traction control that cuts power at the engine or applies the brakes to retard wheel spin (or a combination of both). But nothing beats the function and feel of a a true LSD which may be why BMW continues to use them in M cars. Our LSD upgrades can be done a number of different ways - a factory-type limited slip unit with either 2 or 3 clutch packs, helical type, OS Giken unit, or something truly custom. We can also vary ramp angles and setup to change the limited-slip behavior under acceleration, deceleration, and cornering. Need a custom diff? Call or e-mail to have a quote.

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Turner Motorsport - Corporate Logo
T#:593924
Part#: 027030TMS01
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When both extreme-duty protection and saving every gram matters: the Turner Magnetic Differential Drain Plug.
ECS - Corporate Logo
T#:366828
Part#: 009314ECS01A
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06-13-2026

$ 47.24 USD
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You use a magnetic drain plug for your engine oil, right? Why not apply the same proactive thinking to the differential too? This is a direct replacement magnetic differential drain plug for your BMW. It will catch and retain fine and larger metal particles in your diff oil. If you're proactive in your diff oil servicing, you will catch a minor issue long before it becomes a headache. Diff drain plug includes one sealing o-ring. Direct replacement for Genuine BMW part number(s): 33117525064, 33110308370, 33110152626
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ECS - Corporate Logo
T#:583896
Part#: 000920ECS01
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Ensure the longevity of your BMW's drivetrain with ECS Tuning's Magnetic Plugs. These plugs are meticulously engineered in-house to provide a perfect fit and feature a permanent magnet attached to the plug body. The magnet effectively attracts and captures tiny abrasive and ferrous metal particles, preventing their circulation through lubrication systems. Metal particles can accumulate due to various conditions such as normal wear, machining operations, casting flaws, and stress usage, leading to excessive wear of vital components. ECS Tuning's Magnetic Plugs help alleviate this concern by trapping these particles, thus safeguarding the internal components of your drivetrain. With a convenient 17mm hex head design, these plugs eliminate the need for special tools required for OEM plugs.

Key Benefits:

  • Removes abrasive metal particles from drivetrain fluid
  • Prevents excessive wear to internal components
  • Meticulously engineered for a perfect fit
  • Features a permanent magnet for efficient particle capture
  • Convenient 17mm hex head design for easy installation
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Powerflex Black Series - Corporate Logo
T#:379320
Part#: PFR5-526BX2
Ships in 1 Business Day
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$ 87.54 USD
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This product was last offered at the strikethrough price on
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$ 87.54 USD
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Differential bushings are responsible for keeping the differential in solid alignment while dampening drivetrain vibration. While OE rubber bushings are fine when they are new from the factory, aged and worn out rubber bushings create a multitude of issues that can range from annoying to dangerous. As a factory bushing ages, it begins to harden and become brittle. When this happens the bushing will actually shrink and allow for movement at the differential mounting point. At this point, the differential is free to shift under load causing a noticeable clunking noise under acceleration and deceleration and massively increasing the stress on the driveshaft and axles. Manual transmissions suffer the worst from this as it can make shifting difficult since the differential will shift when the clutch is engaged and disengaged.

By replacing these bushings with full polyurethane, the movement is eliminated since the mounting point is supported by a much stiffer material that will not harden or shrink over time. This means less stress on the driveshaft and axles and greater longevity of supporting components. 

Powerflex Black Series bushings are the ultimate in track and race bushings. Featuring 95A durometer polyurethane, Black Series bushings are 25% stiffer than street bushings. Engineered to perform, Powerflex performance polyurethane control arm bushings offer a supreme level of control, while still providing enough comfort for the street, with advanced polyurethane that reduces NVH that often accompanies lesser bushings. Expect improved acceleration response, more direct shifting feel and overall improved drivetrain composure with Powerflex performance polyurethane bushings.

Poweflex is a leading manufacturer of aftermarket suspension bushings. Using state of the art design and manufacturing, all replacement bushings are engineered to out-perform and out-last the ones that came in the car. Each line of bushings is meticulously tested and then re-tested to ensure perfect fitment and enduring quality through the life of the vehicle. A full lifetime warranty backs every one of their products and demonstrates the level of confidence and commitment Powerflex has to their customers. 

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OS Giken - Corporate Logo
T#:1387
Part#: BM237-HA
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$ 1,950.00 USD
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The M Dynamic limited slip unit on the M3 is designed to be a pure street car differential. It's simply not up to the rigors of professional or amateur racing. The OS Giken Super Lock LSD is giant step up in from a stock M3 lsd unit. It's ready for the extreme conditions of racing, offers 100% progressive locking capability, and is able to do this while operating smoothly and quietly. It's use of advanced technologies that make it perfect for both street cars AND pro race cars... and everything in between. We're excited to be carrying the OS Giken LSD unit in our performance catalog, as we've been using them in our own Championship winning M3 race cars.

OS Giken incorporated revolutionary new ideas when developing the their own limited slip diff, utilizing their accumulated racing knowledge and experience and over 4 years of development. Their design uses an unprecedented number of friction plates (up to 28 total!) for better locking force, better engagement/disengagement, and less generated heat. The end result of their efforts is the OS Giken's OS Super Lock LSD which offers incredible durability and reliability on street and track driven BMWs. The use of highest quality materials, precise machining, forged gears and sound engineering makes this LSD durable and reliable enough for road racing performance (which we can personally vouch for!). This is such a great design, in that it can be used in any situation -- whether it's for a street car, or a 100% Professional race car. Zero break-in required. Super smooth and quiet engagement, and 100% progressive locking capability. Professional installation is recommended.

This Limited Slip Differential Unit fits the following BMWs:
2001-2006 E46 M3 coupe & convertible
2008-2013 E9X M3 coupe & convertible
1991-1995 E34 M5 sedan
1999-2003 E39 M5 sedan
2006-2008 E85 Z4M Z4 M Coupe, Z4 M Roadster
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Powerflex - Corporate Logo
T#:34549562
Part#: PFR5-526H
Ships in 1 Business Day
Sale - Save 15% $ 93.99

This product was last offered at the strikethrough price on
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$ 79.89 USD
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Sale - Save 15%
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$ 79.89 USD
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The Powerflex Rear Differential Rear Mount Bushings for the BMW E39 5 Series are designed to provide a significant upgrade to the vehicle's rear differential system by replacing the stock rubber bushings with high-performance polyurethane. This enhancement leads to improved handling, stability, and durability.

Key Benefits:

  1. Enhanced Differential Control: The stiffer polyurethane material reduces unwanted movement and flex in the differential mount, ensuring better alignment and stability under load. This translates to improved power delivery and handling during cornering and acceleration.

  2. Increased Longevity: These bushings are crafted to resist wear and degradation from oil, heat, and road debris, offering superior durability compared to traditional rubber bushings. This longevity ensures that the performance benefits are maintained over time.

  3. Improved Driver Feedback: By minimizing movement in the rear differential, these bushings enhance the connection between the vehicle and the driver. This results in better feedback and control, allowing for a more engaging driving experience.

  4. Direct Fit for Easy Installation: Designed specifically for the E39 5 Series, these bushings fit directly into the existing differential mounts, facilitating a hassle-free installation process without the need for modifications.

This upgrade is perfect for BMW E39 5 Series enthusiasts who want to improve their vehicle's handling and performance, making it suitable for both daily driving and spirited performance applications. The Powerflex Rear Differential Rear Mount Bushings provide a reliable solution to enhance the overall effectiveness of the rear suspension system.

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OS Giken - Corporate Logo
T#:34382136
Part#: BM237HAKT
Ships in 2 Business Days
$ 2,100.00 USD
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Upgrade to a better performing LSD, includes tune.
Condor Speed Shop - Corporate Logo
T#:597363
Part#: TRANSIX_E39P
Ships in 1 Business Day
$ 35.00 USD
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The 70A poly mounts are the solution if you are trying to minimize vibration and NVH. They are currently the softest polyurethane mounts on the market. We suggest these for all street cars. If you are building a track car, check out the solid UHMW transmission mounts from Condor Speed Shop.
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Team MFactory - Corporate Logo
T#:379403
Part#: MF-TRS-05E39
Back Ordered
$ 999.99 USD
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$ 999.99 USD
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Allows for traction at all times by providing the most power to the wheel with more grip. Unlike plate differentials (1,1.5,2-way) helical LSDs can supply different spin rates to each axle, like when cornering.
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OS Giken - Corporate Logo
T#:34382134
Part#: LSD-TUNE
Ships in 2 Business Days
$ 150.00 USD
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$ 150.00 USD
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