I would be interested in hearing other perspectives on what it would take on an M3 to equal the the record track time from the stock Z and other supercars.
I would venture to say that it would take $25K in (the correct) mods without weight reduction to do it as follows:
Intercooled ESS blower kit + no cat exhaust + 100 octane
Sleeved coil-overs with square set-up/275's all around (like the MRF shop car)
Sport Cups
Camber plates and a perfect alignment (1.8 neg)
M3 GTS bushings
6 or 8 piston front and 4 piston rear brakes
I have a lot of respect for the Z, and it's untouchable bang-for-the-buck. But not everyone is into Vette's. The weight disadvantage of the M3 is its achilles-heel, but it's platform is solid and so by upgrading every major aspect of the car (engine, suspension, braking), it may be able to equal the track performance of the supercars.
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