The S54 six-cylinder engine was replaced by the BMW S65B40, a V8 naturally aspirated engine with two overhead camshafts (DOHC) and 32 valves that has been in production since 2007. The BMW S65, which is exclusive to the BMW M3, shares the same bore and stroke as the 10-cylinder S85. However, in contrast to the S85, the VANOS system is powered by oil pressure. This power unit was replaced by the 6-cylinder S55.

Specifications
| Manufacturer | Munich Plant |
| Also called | S65 |
| Production years | 2007-2013 |
| Cylinder block alloy | aluminum |
| Fuel system | injector |
| Configuration | V |
| Number of cylinders | 8 |
| Valves per cylinder | 4 |
| Piston stroke, mm | 75.2 |
| Cylinder bore, mm | 92 |
| Compression ratio | 12.0 |
| Displacement, cc | 3999 |
| Power output, hp | 420 /8300 rpm |
| Torque output, Nm / rpm | 400 /3900 rpm |
| Fuel type | petrol |
| Euro standards | Euro 4 |
| Weight, kg | 202 |
| Fuel consumption, L/100 km (for E90 M3) — city — highway — combined |
17.0 9.0 11.9 |
| Oil consumption, gr/1000 km | up to 1000 |
| Recommended engine oil | 10W-60 |
| Engine oil capacity, liter | 8.8 |
| Engine lifespan, km | ~200 000 |
| Transmission — 6MT — M DCT |
ZF Type-G Getrag GS7D36SG |
| Gear ratios, 6MT | 1 — 4.06 2 — 2.40 3 — 1.58 4 — 1.19 5 — 1.00 6 — 0.87 |
| Gear ratios, M DCT | 1 — 4.78 2 — 2.93 3 — 2.15 4 — 1.68 5 — 1.39 6 — 1.20 7 — 1.00 |
Disadvantages of the S65B40 engine

The connecting rod bearings on the BMW S65 have to be replaced every 80,000 kilometers due to their rapid wear during power unit operation. It is best to replace the liners beforehand to prevent significant damage.
The Vanos system needs to be repaired on a regular basis; a repair kit is used for this. Engine rattling may be caused by running issues.
Subject to routine maintenance, no overheating, and prompt replacement of worn parts, the motor operates flawlessly for a considerable amount of time.
