The BMW E38 model was the basis for the 1995 through 2001 BMW 7 Series

BMW 7 Series

The BMW 7 Series is a line of full-size luxury vehicles produced by the German automaker BMW. Introduced in 1977, it is BMW's flagship car and is only available as a sedan or extended-length limousine...

 automobiles. Developed from early 1988(final design approved early 1993) to 1994, it was unveiled in the summer of 1994, replacing the BMW E32

BMW E32

After almost 7 years in development since September 1979, in July 1986, BMW introduced the second generation of the 7 series, known internally as the E32. Aimed at the high end of the luxury market, the car offered some of the latest innovations in automotive technology, and a new, top-of-the-line...

 that September and itself was replaced by the BMW E65/E66

BMW E65/E66

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 for the 2002 model year

Model year

The model year of a product is a number used worldwide, but with a high level of prominence in North America, to describe approximately when a product was produced, and indicates the coinciding base specification of that product....

.

The E38 models were offered with either a five-speed automatic

Automatic transmission

An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...

 or manual transmission

Manual transmission

A manual transmission, also known as a manual gearbox or standard transmission is a type of transmission used in motor vehicle applications...

; 730d, 740d, 740i/iL, and 750i/iL had a 5-speed ZF automatic standard.