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If you have issues with your SMG Gearbox/Clutch system, you are wise to consider an SMG-to-Manual Conversion from the offset. This is because the labour costs The E46 M3 had a couple major issues, one of the lesser ones is the SMG gearbox. The hydraulic pump often fails resulting in a costly repair EuroMpire BMW E46 M3 SMG to manual transmission conversion details - $3500.