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BMW Differential and Gearing Upgrades for BMW 3 Series E46 (1999-2005)

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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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MFactory 188 Differential Bearings - Pair

T#:637214

Part#: MF-TRS-DBE46

Ships in 7 Business Days

$ 179.99 USD

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$ 179.99 USD

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Pair of out put shaft differential bearings

Team MFactory Helical Limited Slip Differential (LSD) - Final Ratio 3...

For vehicles with manual or automatic transmission (Gear ratio=3.15:1)

T#:379412

Part#: MF-TRS-05E46A

In Stock

$ 999.99 USD

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$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Helical Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Helical LSD puts the power to the ground and maximizes your vehicle's traction. A must for any car be it street, strip, or track. What exactly does an LSD do you ask? well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling.

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Metal Plate Limited-Slip Differential - 1.5/2.0 Way, V2

For vehicles with an automatic or manual transmission with a Final Gear Ratio of 3.15 ...

T#:379410

Part#: MF-TRS-10E90B

Back Ordered

$ 999.99 USD

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$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power-to-the-ground and maximises your vehicle's traction. This 2-way differential will provide torque transfer during both acceleration and deceleration. This means that regardless of whether there is load (throttle) being applied to the differential or not, it will lock up during slippage. Ideal for those with track use in mind. What exactly does an LSD do you ask? Well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Forged and Cryo-Tempered for unsurpassed toughness Advanced Shot Peening technology for increased surface hardness Coil Spring preload system ensures minimal power loss and maximum response Lower initial pressure ensures maximum durability and chatter-free operation Fully rebuildable with adjustable lock (80-100%) and option for different cam types Available in 1.0, 1.5, and 2.0 way options

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Differential Rebuild Kit M52 2.8L & M54 2.5L / 3.0L

T#:381007

Part#: MF-TRS-RBSE46

Ships in 4 Business Days

$ 99.99 USD

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$ 99.99 USD

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Ensure optimal performance for your BMW's differential with the Differential Ring Gear Bolt Kit from Turner Motorsport. Whether you've recently upgraded to a Limited-Slip differential or need to restore your existing one, this kit has you covered. It includes 10 high-quality bolts along with new axle seals to provide complete hardware replacement. Trust ECS Tuning to provide everything you need from start to finish for a hassle-free installation process.

Complete hardware replacement kit
Includes 10 Differential Ring Gear Bolts and new axle seals
Ensures optimal performance for your differential
Ideal for upgrading to a Limited-Slip differential or restoring your existing one
Hassle-free installation process

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Team MFactory Metal Plate Limited-Slip Differential (LSD) - 1.5 Way -...

For vehicles with a manual or automatic transmission

T#:379408

Part#: MF-TRS-10E90A

Ships in 7 Business Days

$ 999.99 USD

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$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power to the ground and maximizes your vehicle's traction. This 1.5-way differential works similarly to a 2-way in that it provides torque transfer during both acceleration and deceleration. However, the advantage over a 2-way is that it requires less force to lock the differential. This means that it will allow for different wheel speeds, like when cornering. A 1.5-way differential is typically the best option for track or street use, as it keeps from having one tire skipping or dragging.

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Team MFactory Differential Seal and Bearing Kit - E46 E82/88 E9X (wit...

T#:381009

Part#: MF-TRS-DBE46S

Ships in 6 Business Days

$ 299.99 USD

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$ 299.99 USD

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Installing a new LSD unit or just performing maintenance on your diff? This kit includes 10 Differential Ring Gear Bolts, new axle seals, and new differential bearings to make your project a bit easier.

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Differential Shim Kit E46 325Ci / 325i / 328Ci / 328i / 330Ci / 330i ...

T#:1762239

Part#: MF-TRS-SKE46

Ships in 6 Business Days

$ 199.99 USD

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$ 199.99 USD

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Streamline the setup process for your Limited Slip Differential (LSD) with this mandatory back-lash setting tool. This custom-designed tool is instrumental in reducing installation time by a whopping 50%! It's important to note that this tool is not part of BMW's offerings. Should there be any defects or warranty-related matters, it's advisable to directly reach out to Team M Factory for prompt resolution.

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Rear Differential Mounts - OEM/Meyle HD Rubber - E46, X3, Z4 ...

10X Entries Into Our F80 M3 Sweepstakes

T#:339943

Part#: E46-MY-DIFF

Ships in 1-2 days

$ 78.99

This product was last offered at the strikethrough price on
05-07-2026

Starting at $ 74.99 USD

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Starting at $ 74.99 USD

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These rubber bushings from Meyle are a direct replacement for the stock differential bushings in the E46 3-series, E83 X3 SAV, and Z4 Roadster. If your original bushings are worn (likely around 100,000 miles) these are a great replacement upgrade. The front bushings are the stock OEM type rubber bushings. The rear bushing is a Meyle HD upgrade over stock - about 15% stiffer than the originals. This means the bushing will not flex and twist as much. This puts more power to the wheels since power is no longer used up for 'torquing' the bushing. These are not race bushings; the rubber material is perfectly suitable for street use.

The non-M E46/E83/Z4 models use three differential mounts - two front bushings in the subframe and one rear mount in the diff cover. This set of bushings covers all three. You can opt to include new mounting hardware in the Options list below.

This item fits the following BMWs:
1999-2005 E46 BMW 323i 323ci 325i 325ci 325xi 328i 328ci 330i 330ci 330xi
2004-2010 E83 BMW X3 2.5i X3 3.0i X3 3.0si
2003-2008 Z4 BMW Z4 2.5i Z4 3.0i Z4 3.0si Roadster

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Helical Limited Slip Differential - Final Ratio 3.07 or Less - BMW E4...

Gear ratio: 3.07:1

T#:379402

Part#: MF-TRS-05E46

In Stock

$ 999.99 USD

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$ 999.99 USD

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Gain a significant competitive edge with the MFactory Helical Limited Slip Differential, available at Turner Motorsport. This Helical LSD delivers a smooth and consistent distribution of power to your BMW's wheels, optimizing traction on the street, strip, or track. It's an essential addition for any BMW enthusiast.

Curious about the LSD's role? Without it, your car effectively becomes a one-wheel-drive vehicle, supplying torque to the wheel with less grip. The Helical LSD changes the game by allowing both wheels to receive power while limiting the speed difference between them, in contrast to open differentials commonly found in most vehicles.

Key Features:

30-Day Feel the Torque™ Money Back Guarantee: An industry-first assurance that lets you experience the difference. Plus, it's backed by a Limited-Lifetime Warranty for your peace of mind.
Forged and Cryo-Tempered: Engineered for extreme durability and longevity, ensuring it can withstand the rigors of competition-level drag racing.
Advanced Shot Peening Technology: Enhances surface hardness, making it well-equipped to handle the shocks of competition-level drag racing.
Maintenance-Free Gears: Bid farewell to special fluids or rebuilds associated with typical plate LSDs. It's designed for hassle-free ownership.
Lock-Free Operation: Ensures there's no adverse impact on steering response.

Break-In Procedure: For optimal performance, it's recommended to change the fluid after the first 3-400 miles of use.

Please note that any defects or warranty claims should be directed to Team MFactory.

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Differential Service Kit

10X Entries Into Our F80 M3 Sweepstakes

T#:15710761

Part#: 33117525064-KT

In Stock

Sale - Save 2% $ 100.76

This product was last offered at the strikethrough price on
06-15-2026

$ 98.71 USD

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Sale - Save 2%

$ 100.76

This product was last offered at the strikethrough price on
06-15-2026

$ 98.71 USD

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Often overlooked, scheduled rear differential service is very important. Over time gear lube breaks down causing bearings and internal components fail. Regular maintenance will keep your vehicle running properly for years to come. Kit includes 3 Bottles of Castrol SAF-XJ 75w140 2 Drain plugs

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Premium Differential Service Kit - E46 M3, E9X M3, E82 1 M Coupe ...

10X Entries Into Our F80 M3 Sweepstakes
Includes BMW SAF-XJ limited slip differential fluid with FM booster

T#:598688

Part#: E46M3DIFSERTMSKT

In Stock

Sale - Save 5% $ 301.99

This product was last offered at the strikethrough price on
05-03-2026

$ 286.01 USD

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Sale - Save 5%

$ 301.99

This product was last offered at the strikethrough price on
05-03-2026

$ 286.01 USD

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Servicing your differential is an important job and should only be completed using high quality components! To ensure our customers are getting exactly what they need, we have put together this limited-slip differential service kit that includes all new fluid from BMW, a new BMW drain plug, and one of our new Titanium Magnetic Differential Drain Plugs!

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Metal Plate Limited-Slip Differential - 1.5/2.0 way

T#:379411

Part#: MF-TRS-10E46B

Ships in 6 Business Days

$ 999.99 USD

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$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power-to-the-ground and maximises your vehicle's traction. This 2-way differential will provide torque transfer during both accelleration and deceleration. This means that regardless of whether there is load (throttle) being applied to the differential or not, it will lock up during slippage. Ideal for those with track use in mind. What exactly does an LSD do you ask? Well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Forged and Cryo-Tempered for unsurpassed toughness Advanced Shot Peening technology for increased surface hardness Coil Spring preload system ensures minimal power loss and maximum response Lower initial pressure ensures maximum durability and chatter-free operation Fully rebuildable with adjustable lock (80-100%) and option for different cam types Available in 1.0, 1.5, and 2.0 way options These Differentials are dependent on the final gear ratios. *Any defects or warranty clams will have to go directly to Team M Factory*

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Rear Differential Service Kit for various BMW Models

10X Entries Into Our F80 M3 Sweepstakes

T#:42133544

Part#: 835225790TKT

In Stock

Sale - Save 2% $ 60.99

This product was last offered at the strikethrough price on
09-21-2026

$ 59.72 USD

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Sale - Save 2%

$ 60.99

This product was last offered at the strikethrough price on
09-21-2026

$ 59.72 USD

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The kit includes 2 Quarts of Red line 75w90 - 57904 and brand new Rein rear diff oil drain plug M22x1.5

E46 Finned Differential Cover Upgrade Kit

10X Entries Into Our F80 M3 Sweepstakes

T#:401688

Part#: 33117512980KT

Ships in 1-2 days

$ 367.99

This product was last offered at the strikethrough price on
09-09-2026

$ 366.99 USD

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$ 366.99 USD

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The perfect upgrade for any E46, this finned differential cover increases cooling to the rear differential to prevent over heating and possible damage. This is a complete kit including fluid and drain plugs.

Includes the following

Aluminum finned differential cover
Drain & fill plug with sealing o-ring
2 Quarts of Redline 75w90

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Performance Differential Cover install kit

10X Entries Into Our F80 M3 Sweepstakes

T#:556968

Part#: 33112282482KT3

Ships in 3 Business Days

Sale - Save 7% $ 676.14

This product was last offered at the strikethrough price on
05-03-2026

$ 627.61 USD

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Sale - Save 7%

$ 676.14

This product was last offered at the strikethrough price on
05-03-2026

$ 627.61 USD

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This kit includes Turner Motorsport solid aluminum differential race mounts pre installed in the differential cover for a quick install. These mounts where developed by Turner Motorsport for their Grand-Am Cup E46 M3 race cars, the advantages of solid aluminum mounts is increased suspension & drivetrain response, less drivetrain loss resulting in more wheel horsepower, and longevity - they effectively last forever. These CNC-machined mounts are a direct replacement for the stock rubber pieces, and have been lightened to remove excess weight.

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BMW S38 Helical Limited Slip Differential

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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Differential Service Kit

10X Entries Into Our F80 M3 Sweepstakes

T#:15744025

Part#: 331175250640-KT

In Stock

Sale - Save 5% $ 274.99

This product was last offered at the strikethrough price on
05-03-2026

$ 260.36 USD

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Qty

Sale - Save 5%

$ 274.99

This product was last offered at the strikethrough price on
05-03-2026

$ 260.36 USD

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Often overlooked, scheduled rear differential service is very important. Over time gear lube breaks down causing bearings and internal components fail. Regular maintenance will keep your vehicle running properly for years to come. Three bottle of Genuine BMW Limited Slip Gear Lube 1 New Genuine BMW Drain/Fill plugs 1 ECS Magnetic Differential Oil Drain Plug Drain plug O-ring

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Metal Plate Limited-Slip Differential - 1.0 Way

For vehicles with an automatic transmission

T#:379404

Part#: MF-TRS-10E90

Ships in 6 Business Days

$ 999.99 USD

Add to Wish List

Qty

$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power-to-the-ground and maximises your vehicle's traction. This 1-way differential will provide torque transfer only during acceleration. This set up works the best for the drag race minded drivers. What exactly does an LSD do you ask? Well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Forged and Cryo-Tempered for unsurpassed toughness Advanced Shot Peening technology for increased surface hardness Coil Spring preload system ensures minimal power loss and maximum response Lower initial pressure ensures maximum durability and chatter-free operation Fully rebuildable with adjustable lock (80-100%) and option for different cam types Cam type provides the option for 2 distinct levels of initial torque transfer Available in 1.0, 1.5, and 2.0 way options

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Metal Plate Limited-Slip Differential - 1.0 Way

T#:379409

Part#: MF-TRS-10E46

Ships in 6 Business Days

$ 999.99 USD

Add to Wish List

Qty

$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power-to-the-ground and maximises your vehicle's traction. This 1-way differential will provide torque transfer only during accelleration. This set up works the best for the drag race minded drivers. What exactly does an LSD do you ask? Well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Forged and Cryo-Tempered for unsurpassed toughness Advanced Shot Peening technology for increased surface hardness Coil Spring preload system ensures minimal power loss and maximum response Lower initial pressure ensures maximum durability and chatter-free operation Fully rebuildable with adjustable lock (80-100%) and option for different cam types Cam type provides the option for 2 distinct levels of initial torque transfer Available in 1.0, 1.5, and 2.0 way options *Any defects or warranty clams will have to go directly to Team M Factory*

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Metal Plate Limited-Slip Differential - 1.5 Way

For vehicles with an automatic or manual transmission with a Final Gear Ratio of 3.07 o...

T#:379401

Part#: MF-TRS-10E46A

Ships in 6 Business Days

$ 999.99 USD

Add to Wish List

Qty

$ 999.99 USD

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The best way to gain a prominent advantage over the competition is to do it with the MFactory Metal Plate Limited Slip Differential. The smooth consistent distribution of power to the wheels with the MFactory Plate LSD puts the power-to-the-ground and maximises your vehicle's traction. This 1.5-way differential works similar to a 2-way in that it provides torque transfer during both accelleration and decelleration. However, the advantage over a 2-way is that it requires less force to lock the differential. This means that it will allow for different wheel speeds, like when cornering. A 1.5-way differential is typically the best option for track or street use, as it keeps from having one tire skipping or dragging. What exactly does an LSD do you ask? Well without an LSD your car is actually 1 wheel drive, in that it can't supply torque to both wheels at the same time and will only supply torque to the wheel with less grip, which is what the shortfall is to an open differential (what most vehicles have). An LSD only lets the wheels spin at different speeds by a limited amount (typically this is a percentage difference) which is when the differential locks and both wheels get power. This is not how locked differentials work such as in off road trucks which supply equal torque and rotational speed to both rear wheels at the same time, which can cause issues with handling. Features: Forged and Cryo-Tempered for unsurpassed toughness Advanced Shot Peening technology for increased surface hardness Coil Spring preload system ensures minimal power loss and maximum response Lower initial pressure ensures maximum durability and chatter-free operation Fully rebuildable with adjustable lock (80-100%) and option for different cam types Available in 1.0, 1.5, and 2.0 way options *Any defects or warranty clams will have to go directly to Team M Factory*

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Metal Plate Limited-Slip Differential - 1.5 Way E46 / E8X / E9X ...

For vehicles with an automatic transmission

T#:15478740

Part#: TRS-10E90B-1.5

Ships in 6 Business Days

$ 999.99 USD

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$ 999.99 USD

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Unleash the full potential of your BMW and gain a competitive edge with the Turner Motorsport MFactory Metal Plate Limited Slip Differential. Engineered for superior performance, this differential ensures a smooth and consistent distribution of power to the wheels, maximizing traction and putting the power firmly on the ground. The 1.5-way design provides torque transfer during acceleration and halfway through deceleration, making it an ideal choice for those focused on track use.

Prominent advantage with the MFactory Metal Plate Limited Slip Differential.
Maximizes traction for enhanced vehicle performance.
1.5-way design for torque transfer during acceleration and deceleration.
Turns your car into a true 2-wheel drive, improving grip.
Ideal for track enthusiasts seeking superior handling.

Upgrade your BMW's drivetrain with the Turner Motorsport MFactory Metal Plate Limited Slip Differential for unmatched toughness and performance.

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Pre-XDrive Transfer Case Service Kit - E46

10X Entries Into Our F80 M3 Sweepstakes

T#:56616376

Part#: 27111226467KT2

Ships in 5 Business Days

$ 48.99 USD

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$ 48.99 USD

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This Transfer Case Service Kit replaces degraded fluid and sealing hardware to maintain proper lubrication within the all wheel drive transfer case. Unserviced transfer case fluid breaks down into sludge and deposits, causing lubrication loss and internal component wear; this service kit prevents internal wear by renewing fluid properties and drain hardware.

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Limited Slip Differential With Output Shaft Seal - 188 (Small Diff Ho...

10X Entries Into Our F80 M3 Sweepstakes

T#:55965861

Part#: 30309175WKWVTKT2

Ships in 10 Business Days

$ 1,269.99 USD

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$ 1,269.99 USD

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This AutoTech LSD Upgrade Kit pairs AutoTech’s highly engineered 188mm limited-slip differential carrier with a pair of Corteco output shaft seals, giving you everything you need for a leak-free install.

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Front Differential Input Seal Kit - E46, E53, E60, E61, F30

10X Entries Into Our F80 M3 Sweepstakes

T#:41289766

Part#: 31521428678TKT

Back Ordered

$ 52.99

This product was last offered at the strikethrough price on
07-23-2026

$ 50.99 USD

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$ 50.99 USD

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This kit comes with the seal and both dust covers needed to re-seal your vehicles input shaft on the front differential.

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