I've driven E60 M5's before with SMG transmission and I noticed they were very jerky in automatic mode while driving around town. I found that if I manually shift via the paddles into first and second gear and then I shift it into automatic mode, it is much better in terms of jerkiness. After 2nd gear the car shifts just fine IMO so if you could, from a standstill just up-shift manually then flip it into automatic mode.
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