One of the most important aspects of the new BMW M3’s and M4’s performance is the new rear differential. BMW has made great improvements to its electronically-controlled limited-slip rear diffs over the past few years and all of that experience and development has allowed for this new BMW M3 diff to be the best one yet. In this new video from BMW M, we get to see how it works and how important it is to the car’s performance.

The new rear differential of the BMW M3 and M4 is the brand’s best one yet and comes with two different final drive ratios; 3.15 for automatic transmissions and 3.46 for manual transmissions. It’s also electronically controlled, to provide the most precise and rapid response. It also helps to provide maximum traction out of corners, helping to increase the M3’s handling capabilities. The diff is also a bit part of why the BMW M3 and M4 can launch so well, despite currently only being rear-wheel drive.

This new video shows you how it works, with a breakdown of its parts. It also shows you its placement underneath the BMW M3, how its mounted, how it’s designed to create less noise into the cabin, and even how its output shafts work.

We haven’t had enough time in the new BMW M3 or M4 to properly test the new rear diff but we intend to do so soon. We’d also like to compare it to the F80 BMW M3, to see how improved it is over the last-gen car. Though, I do remember how much of an improvement even the F80 M3 Competition Package’s rear diff made over the standard version. So I have high hopes for this new M3’s rear diff and its ability to put all of its monstrous power to the ground.