►After stripping the E36 Touring of its roasted engine and crusty base model suspension and brakes, there’s still plenty to do to get the car running within the next two days. Although the M54 is a BMW engine, it’s a generation newer than the E36, so fuel system and wiring harness modifications are on the table. Beyond that, the nearly 30-year-old chassis has seen better days, and there’s no better time to address the suspension than with most of the car already apart. 

With just two days to get the E36 wagon to a running and driving state, Gareth and Jamie are looking at a monumental task, but not one out of reach. The E36’s previous life in Germany has kept it relatively rust-free, making chassis improvements quick and painless. How will they get on with the rest of the work, and will they get it running in time? You can find that out right here in episode 2!

00:00 – Intro
00:45 – What We Did To The Engine
03:34 – Divide And Concour
06:58 – Time To Install an Engine
10:51 – Making It All Work
15:59 – Finishing Touches
20:58 – Final Thoughts

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20 Comments

  1. As Im drooling over an estoril blue E46 318 wagon down the road from me.Been parked for years getting baked daily in the African sun and the owner won't even entertain any conversation about selling it😢. Lovely build. Hurts but lovely. Hello from South Africa.

  2. I know that voice narrating, what up Nate Brown! Shout out from Aberdeen. Funny , NGP still has your voice as their on hold advertisement when you call and get put on hold.

  3. Great to see this swap done! I have an E36 Touring 6cyl (320i) and have been contemplating an M54 swap. I would love to see a video and/or article on your site about the electronics side of the swap… it was kind of glossed over in the videos. Also a parts list would be fantastic, especially parts that were massaged to make the swap work.

  4. I make an adapter harness for that. I can do both CANbus (for Z3 cluster with working CEL and A/C) or non-CANbus (original cluster and no solution for CEL or A/C). I've been making them since 2013. I invented it.

  5. Hey Gareth,

    I did a similar thing but with a M52>M52tu dual vanos. How did you sort the speed signal from the ABS and also the M54 requires 2 additional labmda O2 sensors, the computer won’t let these error go away and also runs the fuel super rich. Do you perhaps have a solution for the MS41 > MS42 adaptation for the gen difference?

  6. Nice job As BMW technician Is nice see this project 😉 special when I moved from Europe to Canada And know how diffecle Is see some wagons 😉 just have a question Is not Worth buy a engine table fór thé project what you doing 🙂

  7. The engine mount (rubber) to use are the E34 M50 (520i 525i) as the pins are offset and have a lot of leeway. They are solid and not the E36 hydraulic style yet do not transmit much, if any more vibration.

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