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Replacing the Z3, first-generation production started in 2002 at BMW's Spartanburg, South Carolina plant, with both roadster and coupe forms produced. Starting with the 2009 model year, the second-generation Z4 is built at BMW's Regensburg, Germany plant as a retractable hardtop roadster.

The most powerful car of the Z4 line-up is the Z4 M. It features a naturally aspirated, in-line six cylinder engine, used in the third generation of the BMW M3, producing 338 bhp at 7,900 rpm and 365 N·m (269 lb·ft) of torque at 4,900 rpm. 0-100 km/h takes 5.0 seconds, and the top speed is limited to 250 km/h (155 mph).

Five-speed manual gearboxes are standard on all models except the 3.0 L and the M Roadster, which get a 6-speed Getrag. 5-speed or 6-speed automatic are available on all non M cars. The M Roadster shares its 6-speed Getrag 217 manual gearbox with the M3.

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