Why do some late North American-spec E36 M3 sedans have M stripes on the headrests?
BMW was no longer able to produce the standard Nappa leather interior for the E36 M3 sedan in either Black (N5SW) or Light Grey (N5TT) starting in early March of 1998. Therefore, North American-spec E36 M3 sedans with either a Black or Light Grey interior produced after this time received the lower-grade Bison leather from the normal E36 3 Series and a “leather credit” refund (listed as Option Code 996 in the build sheet) of several hundred dollars. These cars also received M stripes on all four headrests, as the Bison leather did not include the usual M stripes on the seats themselves. E36 M3 sedans with a Mulberry, Magma or Modena Natur interior were not affected.