In 1997, the awaited station wagon for the BMW 5 Series E39 was launched.
It was longer than the sedan version, but not by much. Just enough to make a good looking wagon. It was an instant hit for the premium station wagon market all over Europe and in the U.S. The 2000 kg (4400 lbs) towing ability and a big trunk transformed it into a favorite for the families.

Standard features included air conditioning, four power windows, traction control, on-board computer, ABS, airbags and an adjustable steering wheel.

The 4805 mm (15.8 ft) long car could accommodate five people and 410 liters (23 cu-ft) of luggage in the trunk with the rear seats up.

The gasoline engines offered started with an inline 6 unit with a 2.0-liter displacement and went up to a 4.4 liter V8 with outputs ranging between 150 hp and 286 hp, respectively. Another lineup of turbodiesel engines was prepared for Europe, with a displacement of 2.0-liter and 3.0-liter. Transmissions offered were either a 5 or 6-speed manual, depending on the engine, and a 5-speed automatic as an option for most of the versions, but it was standard on the 540i with the 4.4-liter and 286 hp engine.

Unlike the sedan sibling, the top performer 400 hp M5 was not available for the station-wagon.