displacement, the M52B28 and M52B25 engines use the same head and block as the S52. M3 cams are a direct replacement on these engines, so some smart work on the valvetrain can bring a lower-cost 328i much closer to M3 engine performance.
Project: Swapping an E46 S54 M3 Engine into an E36 chassis
If you are looking for a lot more power in your E36 chassis, it is possible to swap in an S54B32 engine used 2001–2006 in the E46 series M3 and the 2001–2002 Z3 M and the 2002–2008 Z4 M. Before you set out to achieve this, however, be aware that this is a very difficult and expensive project.
You can tell the difference between an S52 and S54 visually because the S54 engine simply has an “M” logo on a plastic engine cover, whereas the S52 has a plastic cam cover that reads “BMW M POWER.”
Internally, the S54B32 used a larger 87-mm bore that results in 3,246 cc of displacement compared to the S52 series at 3,152 cc and the 1995 S50 at 2,990 cc. Both the S50 and S52 delivered 240 hp in U.S. trim, and 225 or 240 ft-lbs of torque respectively; the S54 boosts output to 333 hp and 262 ft-lbs of torque.
The S54 engine makes its power with the displacement increase and by using a new cam design with high-pressure infinitely variable double VANOS on both the intake and exhaust sides, plus increased compression to 11.5:1 (from 11.3 in the S52). With the E46 engine, you also get the European-style individual throttle bodies for each cylinder. The engine also offers other incremental efficiencies.
The S52 in this 1997 M3 was upgraded to the later S54 found in the E46 M3 series. This new engine makes 333 hp and 262 ft-lbs of torque.
The good news is that the S54 drops right in to the E36 chassis, and it saves you from extensive modifications required for other engine swaps. No modifications are required to the firewall, crossmember, or any other fixed parts of the chassis. You do need the BMW/Siemens MSS54 engine management control system, more commonly called an electronic control unit (ECU), but BMW official nomenclature is DME for “digital motor electronics.” The S54 does not run at all with an S52 or any other stock BMW DME. The engine mounts and pickup points are the same. The oil pan has a different shape in some areas, but these do not impact the crossmember or other features in the engine bay.
Looking at the front of the S54 engine, you can see the double VANOS bulge on both the intake and exhaust sides of the cam cover.
Unlike the E36 series engines, the S54 engine offers an individual throttle body for each cylinder. All of the E36 engines used in North American production offer a single throttle body leading to the intake plenum.
The project is made more difficult and expensive by the extensive modification and adaptation necessary to fit all the ancillary components and connect the older systems to the newer engine. Because the S54 engine uses an entirely different DME, that unit requires its own wiring harness and then an adapter harness as well to connect the chassis, engine, and DME.
The mechanics of this engine swap are comparatively simple, but the list of required additional parts is long. Here’s a rough shopping list to complete the swap:
• Drive-by-wire accelerator pedal
• S54 wiring adapter harness
• S54 transplant wiring harness
• Z3M engine wiring harness
• S54 DME and EWS (German abbreviation for electronic drive-away protection) and key
• S54 exhaust adapter pipe
• S54 catless header set
• Sport clutch kit
• Full replacement of gaskets, seals, and hoses
In all, the price of the S54 engine, extra parts, and labor to do this job can be expected to total as much as $15,000 to $18,000 before the car is ready to drive.
To remove and replace the engine in an E36, follow the specific procedure in the factory shop manual, but the following are some guidelines to give you an idea of what’s involved.
Follow These Steps
At the front of the driveshaft is the Guibo flex disc. This is a doughnut-shaped part made mostly of rubber but reinforced with steel. The front of the driveshaft has three bolt holes in a flange, and the tailshaft of the transmission has three holes on a flange as well. The Guibo has six holes, and the tailshaft and driveshaft are installed so that they use alternating holes in the Guibo.
All bolts are installed with the nuts at the forward end of the car because there’s no room to put the bolts in from the transmission side. Use a socket on the driveshaft side and an open-end wrench on the transmission side to undo the bolts. Once loosened, you can use a small pry bar to separate the driveshaft from the Guibo because the driveshaft is in two pieces and has a splined center fitting that slides to make room.
When you remove the Guibo, note that it has an arrow cast into the side to indicate which direction faces forward.
Tip: Use the parking brake to hold the driveshaft in place while you work. Release the parking brake to rotate the driveshaft.
At this time you must also disconnect the shift lever from the transmission, which makes this a good time to do a short shifter conversion if you have not already made that upgrade.
You need to remove the clutch to remove the engine. As part of the engine replacement, you should replace the stock clutch with a high-performance aftermarket model.
