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Yes, it was a bad water pump (archive)
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Posted by steve on December 02, 2001 at 20:37:27:

I posted a message several weeks ago about a suspected bad water pump on my 95 M3 with 60,300 miles. As predicted, the pump was bad - plastic impeller spinning freely but thankfully not blown apart. The dealer also replaced the thermostat under warranty (had it replaced last Dec).

Now - how has BMW gotten away with not replacing any of these when the plastic impeller was an obvious design defect? I'm pissed off that they just wait till these go bad, either merely inconveniently or much worse. Has anybody investigated a class action suit, or notified the Consumer Product Safety Commission or somebody like that? It's one thing for a water pump seal to wear and start to leak, but this is an obvious design defect. What do you say guys?

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