The E38 generation (1995-2001) had a five-speed automatic or manual transmission. The engine variants in Europe were 725tds, 728i, 730i, 730d, 735i, 740i (4.0 and 4.4 L), 740d and 750i (with a 5.4 L 322 bhp [240 kW] engine, as was used in the Rolls-Royce Silver Seraph).

The 5-speed automatic transmission came with Adaptive Transmission Control, Sport and Manual modes for responsive handling.

The base prices in 2001 were US$62,900 for the 740i, US$66,900 for the 740iL and US$92,100 for the 750iL.