Shared Knowledge
"BMW Z3 - Location of Outside Air Temperature Sensor"
18 March 2014
Summary: the outside air temperature sensor is attached to the bumper on the right side as you face the front of the car.
Background:
BMW Z3: 1997; 2.8 Liter; 60,000 miles.
Outside air temperature may or may not be displayed inside the cabin but is considered by the fuel management, emissions, system and thus you must have one.
If outside air temperature displayed in the cabin is incorrect, check connector on temperature sensor for corrosion.
If replacement of outside temperature sensor does not correct cabin display, check cabin display connectors.
Temperature sensor:
The temperature sensor is supposed to simply push into a hole in the bumper from the inside and be held in place by some bumper material on the inside.
I found I had to use a hose clamp around the sensor body and bumper material to make sure sensor was not dislodge by washing, etc.