The story
History: facts, each with its source
BMWBlog says SMG stood for Sequential Manual Gearbox and was not a true automatic. An electrohydraulic pump and actuator worked the clutch and the shifts. In the E46 M3 it used the same six-speed Getrag gearbox as the manual, and a setting let the driver choose how fast, and how hard, it shifted.1
BMWBlog says BMW replaced SMG in the M3 with a Getrag dual-clutch transmission after six years, and that the SMG III E60 M5 and M6 ended production in 2010.1