• The E36 Compact has a bit of an unfortunate reputation in certain quarters but Dávid Haas’ example is here to prove that potential is everywhere, and these offbeat hatchbacks can be turned into proper little jaw-droppers… Words: Daniel Bevis. Photos: Krisztian Bolgar.

    2.8-swapped E36 Compact

    There’s a popular saying that you may have heard: ‘When life gives you lemons, make lemonade.’ The kind of mawkish sentiment that seems to make some sort of sense when you see it on a cheesy pink fridge magnet or in somebody’s Twitter bio, but it is, in fact, a pretty dumb statement. If you find yourself with free lemons, just sell them. That’s 100% profit. If you’re going to turn them into lemonade, you’re committing yourself to all manner of time, effort, the expense of ingredients and equipment… the saying should really go: ‘When life gives you lemons, brilliant, free lemons.’ Why overcomplicate things?

    Now, as us car people know, the term ‘lemon’ has a darker meaning. It’s a scathing word applied to cars that are, well, not quite up to par; cars that sometimes feature noteworthy flaws (like the Ford Pinto having those bolts near the fuel tank that means the thing catches fire if it’s rearended), or that have a secret cut-and-shut past, or sometimes simply aren’t considered to be as good as they could have been. And in the eyes of some, the E36 Compact falls into this latter category. The first generation Compact, designated E36/5, was identical to a regular E36 from the front bumper back to the A pillars, but the truncated tail hid the suspension setup from the older E30. This allowed for a lower boot floor and undermounted spare wheel and thus maximised the utility of the hatchback, though many saw it as a compromise.

    But screw that. There’s enough negativity in this world, let’s spin the Compact’s reputation around, shall we? And we’ll let Hungary’s Dávid Haas lead the charge. He’s probably the man for the job – just look at his Compact! The thing’s so aggressive you have to tip-toe up to it in case it nips your hand. Angry, scary thing. “I bought the car to be a daily driver in 2012,” he explains. “It was in quite bad condition but it came with the factory MSport option, which made it attractive.”

    This trim level comprised M-tweaked suspension, foglights, alloys, sports seats, and a few other trinkets to elevate it above the lesser base models. This car as bought came equipped with an M52B25 – the spiciest option that the E36/5 came with; North American readers will probably only be familiar with four-cylinder Compacts, but the European market 323ti served up 170hp from a straight-six, which makes it easier to swap in bigger engines… but let’s not get ahead of ourselves. Where did Dávid go from here, with his ratty but brimming-with-potential motor?

    “It didn’t take much time to decide on the first few mods,” he grins. “I run a small BMW shop here called Han’s Garage, so I had the means at my disposal to make the changes I wanted. This began with hiding the original tired silver paint under a white wrap, and fitting a set of 9.5x16” Hayashi Racing wheels, along with fully adjustable coilovers.” A strong start, but the game was only just beginning to hot up…

    It’s worth noting that Han’s Garage, while Dávid describes it as ‘a small BMW shop’, walks pretty tall in the Hungarian tuning scene. Before this car, he enjoyed much internet celebrity thanks to his E30 cabriolet, E36 coupé, another E30, and a bagged E36 Touring, each one sporting a variety of unexpected home-grown tricks. Any possibility of this Compact retaining a semblance of factory originality was really dead in the water.

    “After a couple of months of use, I decided to make a few further changes as I wasn’t happy with the setup,” Dávid explains, ever the perfectionist. “I replaced the wheels with a set of 10x18” rims from Japan Racing, although the sizing threw up some immediate fitment problems.” He’s used the word ‘problems’, but this is a guy who really only sees challenges as a path to further excellence.

    The sleeves were rolled up, the tongue was poking out of the corner of the mouth, he was in deep: “I fitted a set of 3D camber plates,” Dávid continues, “along with BMW E46 control arms and eccentric bushes to solve the problem, but even all of this couldn’t help me avoid widening the arches… in the end, however, everything was perfect. But I made a wrong move and sold the car in order to turn to a whole new project.”

    Wait, what?! We were just getting into the story Dávid! You’re such a tease… “Yeah, I totally regretted it,” he ponders, scratching his chin thoughtfully. “After about six months I really had the urge to finish what I had started – I’d been having a lot of ideas for the car after I’d sold it. Thankfully the buyer was a friend of mine though, and I managed to convince him to sell it back to me! He’d barely touched the car throughout his time owning it too, so I was able to pick up pretty much where I left off.”

    This buyback move took a lot of Dávid’s friends by surprise. With his strong legacy of building desirable and unique BMWs, why was he wasting his time monkeying about with such a lemon? There are plenty of other ’90s BMWs out there in need of salvation, why take the retrograde step of going back to this Compact again?

    “They were wrong, I guess,” he laughs. “I knew the potential was in there, I just had to let the car do the talking. The first job was to begin the transformation to Army Compact: I painted it flat military green with the help of my friend 819Lacika. Then I ordered a set of zero offset JR11 wheels from #Japan-Racing – 9.5x18” up front, 10x18” out back.” Blimey. And he thought he had fitment issues before! This is real go-big-or-go-home stuff.

    “At this point, I just knew it had to go lower,” Dávid smirks, with the malevolent air exuded by all full-bore modifying addicts. “The TA coilovers were good but they had their limits, so I shortened the bodies and made the shocks stiffer.” This had the desired effect of ensuring that the car has very little in the way of suspension travel at all, which is just what was required. Look at the wheel-to-arch interface, you’ll understand why.

    From this point on, Dávid was keen to really up the game of the aesthetics, and his next move was to acquire an adjustable front splitter from the super-obscure E36 M3 GT homologation model. Trust us, these things make hen’s teeth seem rapaciously abundant in comparison. And to complement this, he added a set of MHW tail-lights, projector headlights and, just for the sheer modern screw-you-ness of it all, some quick release bumper mounts. Because motorsport, yeah?

    “Christmas was coming by this point, and I decided to pause the project for a while,” Dávid recalls. “But my girlfriend thought differently! She put a Wilwood hydraulic handbrake lever under the tree, which of course made me very happy! And that spurred me on to carry out further interior mods – along with the army camo trim, I bolted in a set of E46 front seats, junked the rears along with lots of other superfluous stuff back there, and fitted an OMP steering wheel.” Proceedings are largely dominated by that towering hydro ’brake though, and no bad thing.

    Oh yes – and we should probably return to the idea of power, shouldn’t we? Remember how we were talking about the opportunities created by BMW’s decision to shoehorn an M52B25 into the 323ti? Well, that was just the sort of thing Dávid was keen to capitalise upon.

    “I swapped in an M52B28,” he beams. And he’s right to do so – this is the 2.8-litre motor you’d find in the likes of the 328i and various others, and it’s a lot of displacement for a little hatchback.

    He hasn’t left it stock, either; well, would you expect anything less? “It’s running an OEM BMW Motorsport ECU,” he explains, “along with the usual M50 intake manifold swap, a BMC filter and a full custom exhaust. It’s probably running about 220-230hp now.” And that’s a fairly staggering amount for a 1990s hot hatch. It’s evident that this car was always intended to be as much about ‘go’ as ‘show’.

    What Dávid’s done here, in essence, is to go against the flow and actively seek out one of life’s lemons. And while he may have taken our advice (not always recommended…) and sold the lemon, he quickly pulled it back and decided to make it into something fresh. Not just lemonade, but a full three course meal of lemon sole canapés, oriental lemon cashew chicken, lemon drizzle cake, and a shot of limoncello to round things off. This is his riposte to the lemon-haters, and it’s finger-lickin’ good.

    Interior has been given the same army treatment as the exterior and also features E46 front seats and hydraulic handbrake.

    “I knew the potential was in there, I just had to let the car do the talking”

    TECHNICAL DATA FILE 2.8 / #BMW-E36-Compact / #BMW-328i-Compact / #BMW-328i-Compact-E36 / #BMW-328i-E36 / #BMW-E36 / #Japan-Racing-JR-11 / #BMW-3-Series / #BMW-3-Series-E36 / #BMW-3-Series-Compact / #BMW-3-Series-Compact-E36 /

    ENGINE AND TRANSMISSION 2.8-litre straight-six #M52B28 / #M52 / #BMW-M52 , OEM #BMW-Motorsport ECU, M50 intake manifold, #BMC air filter, custom exhaust system with carbon rear box, power estimated at 220-230hp, five-speed manual gearbox

    CHASSIS 9.5x18” (front) and 10x18” (rear) #ET0-Japan-Racing-JR11 wheels with 215/35 (front) and 225/35 (rear) tyres, 3D camber plates, E46 control arms, eccentric bushes, custom-shortened TA coilovers, #Wilwood hydraulic handbrake

    EXTERIOR Flat military green, adjustable E36 M3 GT splitter, MHW tail-lights, quick release bumper mounts, projector headlights

    INTERIOR Camo trim, OMP steering wheel, E46 front seats, rear seats removed 2.8 E36 Compact