Introduction
Use this guide to replace the driver side airbag in your BMW E36. This procedure was done on a US 1997 M3 with the four spoke steering wheel.
Tools
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            Remove the two screws securing the upper edge of the knee bolster. 
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            Pull the upper edge down to give access to the underside of the steering wheel. 
 
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            Completely loosen the two T30 Torx screws behind the steering wheel while supporting the airbag unit from the front. 
 
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            Lift the airbag unit up and away from the steering wheel. 
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            Disconnect the orange harness connector from the rear of the airbag unit. 
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            The airbag should now be free to be removed. 
 
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                            Conclusion
                          
                          To reassemble your device, follow these instructions in reverse order.
