Very difficult and involved process- but the quick answer is 'yes'. However, it begs the question as to why anyone would want to. The M3 is a V6 where the 318 is only a 1.8L 4-cylinder. Almost EVERYTHING would have to be changed including circut boards, fuel lines, exhaust manifold, possibly even the a/c blower. The electrical output from the smaller alternator on the 1.8L is less than on the V6 so all of the existing resistors would be too much, and anything with built-in resistors, like the speedometer and the a/c, would also need replaced. Not to mention the fact that the motor mounts on the V6 aren't even close to where you need them for the 1.8L. About the only thing that you'll have left from the original M3 is the body and interior, but if that's all you want. . .
Why indeed ! By the way, BMW does not use a V6 engine. The M3 is a 3.2L inline six.
The 1995 M3 uses a 3.0L.
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