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Park brake shoes, replace.

Pull boot off park brake handle by raising the front edge, then pulling forward. 510002.jpg (14377 bytes)
Loosen both adjusting nuts on cable ends as far as possible.  340001.jpg (44563 bytes)

CAUTION: Hold squared off section (green arrow) of cable with pliers or it is possible to twist the end off the cable while trying to undo the adjusting nuts. If cable end breaks off, cable must be replaced.

Remove both 17mm bolts securing brake caliper to control arm. There is no need to remove the caliper from it's bracket. 340010.jpg (58367 bytes)
Pull caliper towards outside of car to force pads apart and slide caliper off rotor.  Tie caliper up temporarily. 340012.jpg (55756 bytes)
CAUTION: Do not allow caliper to hang from flexible hose.
Remove 5mm Allen bolt securing rotor to hub. If bolt head is stripped, and rotors are being replaced, use a hammer on the back of the rotor to break it off the hub. This will allow you to get full access to the head of the bolt with a pair of vice grips or even to cut a slot in the head for a screwdriver. 340014.jpg (18657 bytes)
The only purpose of this bolt is to retain the rotor while installing the wheel, if necessary, it can be left out, although it may cause problems later if you have to change a tire on the side of the road.
Remove rotor, if rotor is stuck to hub , hit it with a hammer. If rotor is to be re-used, do not hit the outer surfaces, hit the rotor where the wheel bolts go through. The shock of a few good hits will bounce the rotor off the hub, be careful not to drop the rotor.
Wind adjuster (red arrow) in to minimum setting. Remove both springs (green arrows). Insert 5mm Allen key into shoe retainers and twist 90°. Release pressure on retainer and remove. 340015.jpg (18806 bytes)

Note: Hub has been removed for clarity of photographs.  Do not remove hub unless you intend to replace wheel bearing.

Pull lever forward to expose cable pin. 340016.jpg (13873 bytes)
Pull on cable to ensure free movement.  Replace park brake cable if it does not move freely.
Slide pin (arrow) out of cable end. 340017.jpg (11874 bytes)

Installation

Clean and lube pin and hinge of lever with a very small amount of anti seize lubricant.
Dismantle adjusting assembly, clean and lubricate threads with anti seize lubricant.
Rotate the brake rotor until a wheel bolt hole is approximately 30° beyond the top vertical point.  Photo shows park brake assembly with wheel, rotor and hub removed for purpose of showing position of adjuster (arrow) 340009.jpg (64437 bytes)
Insert a screwdriver through the bolt hole and turn the Left adjuster UP to tighten and the Right adjuster DOWN to tighten. Tighten adjusters until wheel stops rotating, then back off approximately 2 full turns.
Pull park brake lever up 5 clicks and tighten adjusting nuts, while holding cables, until rear wheels begin to bind, but can still be turned. Each cable must be adjusted individually to achieve the same results at the wheel, do not simply adjust both cables exactly the same amount of threads as the wheels will not necessarily have the same braking force applied.
Check that the park brake warning lamp goes out with the lever lowered and ignition on, adjust switch at rear of lever if necessary. 610008.jpg (8563 bytes)

Part Numbers:

Park brake shoe (4 required) : 34 41 1 159 467
Brake shoe spring kit,  M3 : 34 41 9 064 267
Brake shoe spring kit, all except M3 : 34 41 9 064 266
Adjusting mechanism : 34 41 1 100 550
Expanding lever : 34 41 1 163 709
 

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E30 M3 Repair Manual V2.7.  Copyright ©1999-2001 Koala Motorsport & Brett Anderson