From front bumper to A pillar, the Compact is identical to the BMW 3 Series (E36) sedan, sharing the front fenders, bumpers, lights, windshield, wing mirrors, and the hood. As with the entire E36 range, the E36/5 also shares an identical wheelbase. Similarities with the E36 sedan/coupe range end here; from the A pillar rearwards, the E36/5 is unique from others in the E36 range featuring unique framed doors, windows, roof, trunk pan, taillights, and suspension.
The BMW E36/5 Compact shares its suspension with the BMW Z3. The front employs the E36's standard MacPherson strut design, while the and rear suspension uses a semi trailing arm from the previous model BMW 3 Series (E30).  http://www.designercars.net/
The E36/5 made use of the older semi-trailing arm rear axle, as opposed to the E36's Z-Axle Multi-link suspension, as the trailing arm design was smaller, it allowed for more a lower trunk floor height, fold down rear seats, and an exterior undermounted compact spare tire.
The inherent design of the trailing arm suspension was that it favoured oversteer. Consequently, the Compact received mixed reviews from the automotive press, some claiming the chassis was the most balanced of the E36 range, while others said that the car wandered and darted in a straight line, and was uncomposed in the corners. It is popular with enthusiasts, being the lightest, fastest, best handling and least expensive.