^ well E30's do, E36's not so much. They have less clearance before you hit the frame rail's. To do what Sean did you need E46 front control arms (which also work on E30's BTW)
it widens the track in the front, but it keeps your scrub radius low and reduces unsprung weight (the e46 arms are alot lighter) so yes you may need to run a higher offset wheel or fender flares