When BMW began production on the Z4 in 2002, reviewers and consumers were pleased with what they saw. The 2-door roadster replaced the earlier Z3 and essentially corrected any issues that buyers had reported with the predecessor like cramped interior space and a rough ride. The BMW Z4, designed by Chris Bangle, was a departure from the typical BMW style with a more aerodynamic front end and curved lines. After four years of being on the market, BMW decided to unveil a coupe version of the Z4 at the Frankfurt Motor Show where critics raved about its possibilities. Many felt that the Z4 coupe would be a perfect match for use in the new James Bond films, while others simply praised the dynamic styling.

In the United States the BMW Z4 is available with four different engine levels ranging from a 2.5L I6 to a 3.2L I6, while Europe saw the addition of both a 2.0L I4 and 2.2L I4. America's base model generates around 192 braking horsepower and the 3.2L version gets about 330 braking horsepower. BMW also released a Z4 M that is equipped with a 340 horsepower inline 6-cylinder. The Z4 M borrows its engine technology from the BMW M3, a sports car produced by the maker since 1986. All trims of the Z4 come standard with a 5-speed manual transmission, but buyers can swap it for a 6-speed automatic in every trim except the Z4 M. Up until the 2006 model year, the BMW Z4 was only available with the I4 engines as well.

The BMW Z4 is currently used in several racing competitions like the KONI Challenge, FIA GT4 European Cup, and the Silverstone Britcar 24 Hour Race. Its claim to fame came when the Z4 M, driven by Tim Mullen, won the Silverstone Britcar Race. BMW, long known for their high-profile vehicles, has allowed the Z4 to be used in several popular television shows and films. Some of the most recognized television appearances include The Office, Desperate Housewives, and Veronica Mars. The Z4's film spots consist of License to Wed, The Girl Next Door, and Spanglish.

In 2009, the Z series of vehicles from BMW is set to gain an addition called the Z2. Rumors have been flying that the upcoming model years might bring a twin turbocharged engine for the Z4, while others are reporting that the BMW Z4 will receive a complete makeover including a revamped, more streamlined exterior.