The Z4 (E89) was officially announced on 13 December 2008 and was unveiled at the 2009 North American International Auto Show in Detroit.
The 35is was only available with a 7-speed dual-clutch transmission (DCT) in the M Sport trim and uses an upgraded version of the N54 engine shared with the 1 Series M Coupé. The engine has a computer-controlled over-boost function for 3rd to 7th gears. The boost function activates after each gear change with full throttle and lasts for 7 seconds between 1,500 and 4,500rpm. Peak torque during overboost is 500 N⋅m (369 lb-ft), compared to 450 N⋅m (332 lb-ft) without overboost. The 35is sits 10mm lower than the standard Z4 adding a more aggressive look to optimise the stance.