E46 M3 Engine Failure

BMW has issued bulletin # 11 02 03. They are replacing oil pumps, and
connecting rod bearings on M3 cars produced from 10/2001 through
02/28/2002. They are paying 6.9 Hours to do this. Looks like our friends
at the dealers are going to be busy! Includes a full tank of fuel also!

(Courtesy of Brett Anderson)

I have in my hands, an internal BMW email dated May 23, 2002.

It says: Subject: 2001 and 2002 M3 Engine We have received reports of model year 2001 and 2002 M3 engine damage. We are evaluating every situation where engine damage occurs and are currently analyzing failed engines to determine the cause.

Please be assured that we at BMW will stand behind our product and will fairly address all cases of engine damage on an individual basis.  Also, we will cover the cost for engine replacement where there is a defect. Respectfully, we ask our owners to adhere to the following (found in the owners manual) to avoid engine damage. - Be sure to properly break in the engine. (Owners should refer to the owner's manual for proper break in procedures.) - Drivers should not exceed the maximum RPM of 8000. - Drivers should pay particular attention to the engine oil level and only use recommended oil. The only engine oil currently approved for the current M3 models is Castrol Formula RS or Castrol TWS Motorsport SAE 10W-60

Owners with questions should call Customer Relations at (800) 831-1117 or email us at http://www.bmwusa.com 

End of quote

BMW extends M engine warranties while it investigates engine failures
By BOB GRITZINGER

BMW has extended factory warranties on more than 17,000 M3 six-cylinder engines—a powerplant some owners have referred to as the “Engine of Damocles”—while it investigates the cause of a number of engine failures.

The standard four-year, 50,000-mile warranty is extended to six years and 100,000 miles on M3s, M coupes and M roadsters equipped with the 333-hp 3.2-liter engines. The extension covers vehicles with BMW designation “S54” engines built in model years 2001, 2002, and until further notice, 2003.

In a letter sent to owners in December, BMW confirmed “cases of damage to the connecting rod bearings resulting in engine failure” in the 3.2-liter engines. The company told owners it is “conducting an in-depth engineering analysis to determine the reason for the failure.”

In December, AutoWeek reported that more than 100 M3 owners had logged complaints online about potential engine problems. Some owners estimated that as many as 500 vehicles could be affected (AW, Dec. 2); BMW put the number at under 100 and said it was dealing with engine failures on a case-by-case basis.

BMW continues to urge M owners to use BMW-approved 10W60 synthetic oil instead of the usual 5W30. The company also recommends that the engine be properly warmed to normal operating temperature before full power is used, and that the accelerator should not be pumped when the vehicle is sitting still with no load on the engine.

Anyone with questions or concerns is asked to contact their local BMW dealer or BMW Customer Relations at 800-831-1117.