Well, Part of the reason why the E39 M5s are built in larger numbers is that it's more user friendly than the E34. The E34 was more of a sports car. It was agressive, it had a very hard sports suspension system, etc. Another reason is that the E39 is built alongside the 'normal' fives on the 5 series prodcution line. The E34s were handbuilt at BMW's M factory. The fact that the the E34s were not sold after a while in the US is another reason, I guess.
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