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I have been looking for a 1994-1995 540i. In the process of looking, I have found a few with an engine replaced at very low miles. Sellers have claimed that this was due to a recall on the auto, and that BMW replaced engine for free. I'm looking for the details of this recall, if it really exists. Especially in what caused the problem, what the symptoms of the problem are, and if the replacement engine had improvements that eliminated the problem.
One seller told me that the cause of the problem was high sulfur content in US fuels which affected the cylinder liners. Sounds like typical German engineer response - never an engineering problem, always a customer problem.
I had the engine in my previous 95 540i replaced. Everything was fine, no problems at all. In fact, you get better and smoother power from the new engine. It also helps with resale when you sell the car in future, hopefully with warranty still left over! (100k or 6yrs) The guy who bought it from me was kinda impressed with the warranty. B)
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