The Restoration of a South African Classic: The Iconic BMW 745i

by | Apr 28, 2026

BMW Magazine Editor John Tallodi goes behind the scenes to find out more about the story of this dyed-in-the-wool car enthusiast and his latest project: the restoration of a South African spec 745i.

 

 

 

When you meet him for the first time, Stefan Schuett comes across as affable and laid-back, happy to chat about just about any topic, although the conversation inevitably shifts to the automotive world before long. Having been obsessed with cars since childhood that works just fine for me. Having written about cars, and BMWs in particular for decades, I am quite comfortable chatting about cars and am usually the one spouting off production figures, performance numbers and little details while my audience slowly backs away, realising what they have just got themselves into.

But with Stefan it immediately becomes apparent that he not only knows a lot more than most, he has also lived and breathed cars in a way that even the most avid automotive enthusiast would be in awe of. You may know the number of E36 convertibles built; he will be able to tell you the VIN numbers of all the blue ones with BBS rims from the factory.

 

More Than Just A Numbers Guy

Stefan’s sheer breadth of knowledge about the BMW brand in particular is impressive, and the fact that he is the CEO at BMW Financial Service in South Africa reveals that he clearly has a head for numbers, but his passion runs a lot deeper than that. He also owns a collection of vehicles that provide a much more rounded insight into his love of cars. From a recently acquired E30 M3 Convertible, to a Sepang Bronze Z4 M Roadster, he has an eclectic taste for unique and interesting models. Underlining his all-encompassing passion for all things automotive, he also takes part in club events of all types, attends and judges concours events around the world, and is currently restoring one of the rarest and most interesting BMWs ever built: a South African spec E23 745i.

 

The BMW E23 7 Series – a quick history lesson

The E23 generation 7 Series was introduced in 1977 and had the unenviable task of replacing BMW’s ‘New Six’ E3 sedans, the models that had helped establish the Bavarian automaker in the luxury sedan market. By the late ‘70s it was time for a refresh, and the E23 was a technically advanced offering with ABS brakes (a first for a production BMW), check control panel, Service Interval Indicator (SII) and a chassis that set the standard for sporty dynamics in its class.

To take advantage of the E23’s latent dynamic abilities, a turbocharged 3.2-liter M102 engine was fitted to the range-topping 745i in Europe in 1980. Developing 185 kW and 380 Nm of torque, it was a potent powerhouse that turned the luxurious E23 7 Series into a serious performer. This engine was updated to 3.4-liters in 1983, with the same power and torque figures, although produced at much lower rpm.

For the South African market, a different approach was taken. Instead of the turbocharged motor, or a bored-out version of the 735i’s 3.4-liter engine, the SA-spec 745i got a development of the M88 engine that had first debuted in the mid-engined M1 supercar. This M88/3 3.5-liter inline-six engine produced 210kW and 340 Nm of torque without the aid of forced induction, and featuring individual throttle bodies, dual overhead cams and a 7,000-rpm rev limit, it was one of the most advanced production engines in existence.

 

 

And if you think the size and weight of the E23 shell would blunt this engine’s performance, a 745i won Class A of the South African Modified Saloon Car Championship in 1985. Available with 5-speed manual dog-leg and electronically-controlled 4-speed automatic gearbox, the earlier was nothing less than the world’s fastest production four-door in 1984 until the sleeker M5 (E28) was launched later that year.

 

Number 14 – Stefan’s 745i

 

Of the 285,029 E23 7 Series models built, 16,168 were 745i models, and of these, 255 were the South African spec 3.5-liter versions. 15 of these were built with the manual 5-speed dog-leg gearbox which included one pre-production car. Due to the extreme rarity of these cars, manual or otherwise, Stefan spent a fair bit of time tracking down his example.

His car is one of the earliest, with serial number 14 of the automatic cars and it’s painted in charming opal-green metallic over oyster leather. It features amongst other extras the Gen I BMW on-board computer with green and red LED’s left and right –reminding one of the contemporary Star Wars movies. And its multitude of push buttons requires, by today’s standards, counterintuitive operation.

 

Only the very early vehicles feature the M badge proudly on both, speedometer and tachometer whereas on later models, only the rev counter shows the tri-coloured M badge. To the contrary, the cylinder head cover and the intake manifold show just “BMW” and not “M Power” like later models. Not known to many is that the SA 745i was the first application of the M88/3 engine (the M635CSi came later) and the first four-door with a BMW M engine as it preceded the E28 M5. It also bears the distinction of being the first with an M engine that was denied the M badge like later 320is (”Italo-M3”) and 850CSi.

The story behind the story

 

A road trip along the Garden Route, shortly after acquiring this car, allowed Stefan not only to learn about the past of this BMW, but also to meet the mastermind behind the SA 745i. A spontaneous stop at Iconic Classics Cars of Knysna revealed that they sold this very car two years earlier on behalf of the decade-long owner in Plettenberg Bay.

 

 

They also knew of Klaus Wambach, the man who had been in charge of M88 production for the M1 in Munich. He subsequently went on a long-term assignment at BMW SA to become first project lead for the SA 745i and eventually head of “Special Car Production” doing the 745i and later the M5 and BAUR Cabriolets.

Klaus had settled in South Africa, and thanks to this happy coincidence, Stefan met him at his home in Brenton On Sea. Klaus was only too happy to reminisce about the development of the car, quickly pulling out a folder with old photos of the 745i project. In one of the pictures a selection of 745is were parked in the production hall, two of them in Opal Green, and after some digging Stefan found that one of them had been the exact car he had just purchased.

The Road To Perfection: Part 1

 

Stefan has been putting his 745i through a rigorous restoration process, as unlike other low-volume vehicles with exotic engines, these luxury sedans were treated like regular family cars, with the previous owner using his to regularly tow a boat. When he bought it, the car looked presentable, but on closer inspection an earlier repaint had clearly been done on a budget, and mechanically there was a lot to be done too. Issues ranged from an overheating engine, to electrical issues, and several other gremlins that needed to be dealt with.

In our next installment, we detail the comprehensive ground-up restoration that number 14 has been undergoing, and hopefully it will be back to its former glory and ready to take its place among some of BMW’s rarest and most interesting models ever made.

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