i see. okay, in the beginning of the E46 line, the 316 was not planned to be built. When demand for a 316 increased and got big enough BMW decided to offer a 316 as well, all though they did not plan to. the engine chosen for this 316 was the one used in the 318 but with reduced power. that´s it.
maybe me or someone can find more information what they did to reduce the 318 power to make it a "316".