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Yes, there was ONE problem with 1995 v8's (archive)

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Posted by John Feng on August 02, 2001 at 08:39:05:

In Reply to: Any known engine problem's in 1995 8 cyl.? posted by steve j on August 01, 2001 at 21:10:42:

BMW does not use sleeved engine blocks.
From 1993-95, their aluminum blocks
reacted badly to USA gas with high
sulfer contamination. This caused pitting
in the cylinder walls, with an eventual
loss of compression. BMW extended the
engine warranty for this one and specific problem
to 100kmiles and 6 years (from in-service date).
Other than this, I believe the 1995 540i
has no engine related weaknesses (I've not
experienced any in 90k miles).


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