Two problems related to rear suspension have been reported for the 1998 BMW M3. The most recently reported issues are listed below.
1) normal vehicle operation 2) left rear strut-tower failure resulting in penetration of strut and spring and failure of rear suspension. Could have resulted in loss of control and accident. 3) repairs pending. Known issue w/ BMW e-36's.
The shock wells rusted and cracked making shocks protrude out of it's mounts.