alt=""/> Remove the catalyst section from the exhaust header. Set these aside. If you have not already upgraded the exhaust, now is a good time for that job.
Profile: Valerie’s E36 M3 with an S54 Engine
Valerie Bradley went through the process of installing the S54 engine from the E46 series into her E36 M3 sedan. Here’s why she went to the expense and effort, and what she got out of building this street car into her track-day machine.
“The car is a 1997 M3, and I wanted to put more power into it. The stock engine was fine but wasn’t spectacular on the straights. I knew that there was more in the car than I could find with that engine. The VANOS was going bad, so instead of fixing that, we decided to put in a new engine,” Valerie says.
Among the options Valerie considered was a turbocharger kit and just buying a newer car with more power. But there was a good reason to stick with the E36. “Part of the reason for getting the older car was that we’re putting it on the track and that can be dangerous. I didn’t want to have that much money at risk on the track. So we decided to upgrade this car until we’re at the limits of what the car can do,” she says.
With the S54 engine installed, Valerie is ready to drive her 1997 E36 M3 on its first track day.
The swap to the E46 engine was more complicated than expected, but the results have been spectacular. “With the new engine, the car was dynoed at 297 hp at the wheels. It was a significant enough power increase to be worth the effort and money. I can actually pass people on the straights now. The car is more lively, more fun, and more nimble. There’s so much more it has to give now,” Valerie says.
In addition to the new engine, Valerie has installed a set of Moton coil-overs for suspension, Alcon front brakes, and an aftermarket radiator that was not required in order to clear the E46 engine, but does a better job of keeping that engine cool on track. Plus, the aftermarket radiator incorporates an oil cooler, which is absolutely necessary for the high-revving S54 engine.
The new S54 engine works great. You must use the digital motor electronics (DME) computer from the M3 model, and an adaptive wiring harness is needed to install that DME in any other E36, but all the major mechanical points bolt right up.
These barrel connectors are the points where the chassis wiring harness meets the engine wiring harness. Disconnect these before you lift out the engine.
One point at which engine replacement becomes hung up, literally, is the engine ground strap. Be sure it’s disconnected before you try to lift the engine out of the engine bay.
When you install the new engine, bear in mind that you can move these mounts to get a good fit before tightening them again.
BMW engine mounts are remarkably simple and straightforward. Undo the nuts and the engine lifts right off. The body-side mounts are movable so you can adjust the new engine to fit perfectly.
The engine lift point at the forward end is located right around the VANOS hardware. A convenient lifting loop is provided for you, and this attaches to strong points on the engine for safe lifting.
With the clutch and flywheel off, the S52 engine lifts out of the engine bay quite easily. Be sure you’ve drained the oil before you begin, as it’s much harder to drain with the engine out.
The flywheel is already removed from this engine for the lifting process, but you can also see the rear lifting tab, which you find on the driver’s side just behind the cylinder head.
Here’s the body-side engine mount, with its rubber isolator and vibration dampener. This mount moves around a bit so you can position the engine onto it and then tighten everything into place.
