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Mechanically, the car utilised the hydraulic brake control, gear box, clutch and front suspension system first seen on the BMW 326, along with the live axle used on the BMW 320 and BMW 328. The BMW M78 straight-6 engine was used. The advertised top speed was 125 km/h.
A higher-powered model, the 327/28, was offered with the M328 engine. 569 of these high-powered 327/28 cars were built up to 1940.