Sounds like gear position sensor or clutch position sensor issue. Does it blink in low gears before engaging?
Originally Posted by BlackStarMiG
Ok guys, I'm new to the forum and ive owned this 2003 e46 M3 for about six months and I've had this problem with the transmission. For some reason the SMG takes too long to shift, for example say I'm driving from a stop and its about to shift into the next gear it go's limp for a second then it drops the gear and you keep driving. almost like really bad granny shifting, it doesn't always happen though. wen i go faster or i shift the SMG it works fine the higher gears work fine only in the lower gears. Also is it normal if wen i set it in auto mode it doesn't go down to 1st gear on a stop it go's down to 2nd? please help me out idk what wrong with my car makes me unhappy with it
Also, it's possible it may require a software update and/ or calibration of clutches.
So, I ask myself the question, what today..... what tomorrow?