The BMW 540i in the third 5 Series generation (E34, built 1988–1996) was built with one engine, the M60B40: a 4.0 L petrol V8 with 286 hp.
This guide tells you which engine your 540i has, what goes wrong with it, what a replacement costs from our stock and what else to plan for when you fit one.
- Generation: third 5 Series, 1988–1996
- Body styles: E34 (saloon, Touring)
- Engines: M60B40
- Output: 286 hp
- Replacement engines in stock: ask the desk for the next arrival
Which engine is in your 540i?
| Engine code | Built | Power | Torque | Type |
|---|---|---|---|---|
| M60B40 | 1992–1996 | 286 hp | 400 Nm | 4.0 L petrol V8, naturally aspirated |
M60B40 in the 540i
The M60B40 was used in the E34 540i, built 1992–1996. It is a 4.0 L naturally aspirated petrol V8 with 286 hp and 400 Nm.
Reading the code: M marks an M-series code, the naming BMW used for its engine families up to the early 2000s; 60 is the family number; B stands for petrol (from the German Benzin); 40 is the capacity in decilitres, so 4.0 litres.
540i engines by model year
| Model year | Engine |
|---|---|
| 1992 | M60B40 (286 hp) |
| 1993 | M60B40 (286 hp) |
| 1994 | M60B40 (286 hp) |
| 1995 | M60B40 (286 hp) |
| 1996 | M60B40 (286 hp) |
The 540i kept the same engine for the whole E34 run, which makes ordering simple: any unit with the same code fits, subject to the gearbox, drive type and sump.
Other cars with the same engine as the 540i
A replacement engine does not have to come from another 540i. These models left the factory with the same engine code, so a unit from any of them is a candidate donor once the sump, mounts and ancillaries are matched to your car.
M60B40: BMW E32 740i, BMW E31 840i.
How to confirm your engine code
The 540i only used the M60B40, but the exact version can still change with the build date, gearbox and market. Send us the last seven characters of the VIN and we read the engine code from BMW's records, or look for the code stamped on the block. How to find your BMW engine code.
Known 540i engine problems
The M60B40 in the 540i shares the known weak points of the M60 family. Full M60 guide.
| Known fault | What to check |
|---|---|
| Nikasil bore damage | A cold and hot compression test or a leak-down test on all eight cylinders is the only reliable check. |
| Timing chain guides and tensioners | Listen for a rattle on a cold start, especially from the front of either bank. |
| Coolant leaks in the valley | Look at the back of the engine for coolant trails and pressure-test the system. |
| Valve cover and spark plug tube gaskets | Pull a coil and check the well for oil. |
| Engine wiring harness | Flex the harness gently and look for cracked insulation near the heads. |
Nikasil bore damage. Sulphur in fuel reacted with the Nikasil coating in some markets during the 1990s. Damaged bores lose compression, causing hard starting when warm, rough idle and poor running. Many engines were replaced under warranty, so survivors are often good units.
Timing chain guides and tensioners. The duplex chains last, but the plastic guide rails age and can crack, and tensioners lose their seal.
Coolant leaks in the valley. Coolant pipes and the water pump lead into the valley under the intake manifold. Leaks are hidden until coolant pools and corrodes.
Valve cover and spark plug tube gaskets. Oil seeps into the plug wells and onto the exhaust manifolds.
Engine wiring harness. Harness insulation becomes brittle with heat and age.
Symptoms to watch for on the 540i
Rattle for a few seconds after a cold start. The classic sign of a weak timing chain tensioner or stretched chain. It must be checked quickly: a chain that jumps a tooth can bend valves.
Hard starting when warm and low compression. On engines with Nikasil bores, the bore coating may be damaged. A leak-down test confirms it.
Looking after the 540i engine
- Oil: 5W-40 or 10W-40 fully synthetic, about 7.5 litres with filter.
- Service interval: Oil every 10,000 km or yearly; cooling system parts every 80,000 to 100,000 km.
- Timing drive: Duplex timing chains at the front, one per bank, with hydraulic tensioners.
- Workshop notes: Ask for a compression test before purchase. Replace the valley coolant pipes and water pump while the engine is out.
Buying a used engine for the 540i: checklist
- Confirm the exact engine code. Read the code stamped on the block and compare it with the code for your car. Send us the last seven characters of the VIN and we confirm the match before anything is paid.
- Why your old engine failed. Before fitting a replacement, find out why the original failed. An overheating radiator, a blocked intercooler or a failed turbo can destroy a second engine if they are not fixed.
- Sump, oil pickup and drive variants. Rear-drive, xDrive and front-drive cars can use different sumps, oil pickups and engine mounts even with the same engine code. Check that the sump matches your subframe and front axle.
- Ask how the donor car was damaged. Most good used engines come from cars with body damage. A front-end impact can crack sensors, the timing cover or the sump; a rear or side impact usually leaves the engine untouched. The yard records the damage on each unit.
- Gearbox and flywheel match. Manual and automatic engines differ at the flywheel or flexplate, and sometimes at the crankshaft spigot. Make sure the engine you buy matches your gearbox or that you transfer the right parts.
- Timing chain noise. Listen for a rattle at the front of the engine for the first seconds after a cold start. On an engine that cannot be run, look at the chain guides through the oil filler or with the valve cover off.
- Bore coating. Early engines with Nikasil bores can be damaged by high-sulphur fuel. A compression or leak-down test is the only reliable check; units with Alusil or iron bores are not affected.
- Originality and numbers. For collectible cars, the engine number and correct ancillaries add value. Photograph the stamp and keep it with the car's documents.
- Both cylinder banks. On a V engine, check compression, plugs and coils on both banks. Faults on one bank alone are common and easy to miss on a quick test.
BMW 540i replacement engine cost
We do not have a 540i engine on the shelf at the moment. Send us your VIN or the code you need and the desk will tell you when the next unit arrives and what it will cost.
On top of the engine, budget for the workshop's labour and the parts that are best replaced while the engine is out: engine mounts, the rear main seal, cooling parts, a clutch or converter seal, fluids and filters.
Will it fit my 540i?
Engine swaps and upgrades for the 540i
These engines were fitted to other versions of the E34 at the factory, which makes them the most practical upgrades: the body was designed around them and many parts are shared.
Can I fit the S38B36 in my 540i?
It is a conversion rather than a replacement: the S38B36 is an inline-6 and your M60B40 a V8, so mounts, sump, cooling, exhaust, wiring and the engine control unit all change. The gain is 29 hp and 0 Nm. In Germany and most of Europe an engine swap must be inspected and registered.
Can I fit the S38B38 in my 540i?
It is a conversion rather than a replacement: the S38B38 is an inline-6 and your M60B40 a V8, so mounts, sump, cooling, exhaust, wiring and the engine control unit all change. The gain is 54 hp and 0 Nm. In Germany and most of Europe an engine swap must be inspected and registered.
Fitting a replacement engine in the 540i
- Inspect or replace the timing chain parts. Look at the guides and tensioner. On high-mileage engines, replacing them now costs far less than doing it later.
- Fill with the right oil and prime it. Fill with new oil of the correct specification and a new filter. Crank with the fuel and ignition disabled until oil pressure builds.
- Coding and adaptations. On modern BMWs, the engine ECU must be matched to the car's immobiliser (CAS, FEM or BDC). Reset adaptations, register the battery and clear faults with diagnostic software.
- First start and leak check. Start the engine, let it idle and watch oil pressure, temperature and fault codes. Check for leaks and bleed the cooling system.
- First 1,000 km. Drive gently for the first few hundred kilometres, vary the engine speed and avoid full load. Change the oil and filter after about 1,000 km to remove any assembly debris.
The full fitting and first-start procedure.
540i engine questions
How much is a replacement M60B40 engine for a BMW E34 540i?
A used M60B40 for the BMW E34 540i costs from about 2.000 € to 3.200 € in our yard. The price depends on the year, the mileage and the parts that come with the engine.
Shipping is a flat 249 € per order. It is added once at checkout and printed on the invoice, so there is no extra fee later. Inside the EU there is no import duty. Outside the EU, the receiver pays local duty and VAT.
A replacement engine is often much cheaper than rebuilding a damaged one, and much faster. The M60B40 you buy is photographed and checked in Hamburg before it is listed.
Eligible engines come with a 12 months warranty from the delivery date. It covers internal mechanical failure under normal use and correct fitting by a qualified mechanic or workshop. Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
Will the M60B40 engine fit my BMW E34 540i?
Yes, if your BMW E34 540i was built with the M60B40. BMW used this 4.0 liter (3,982 cc) petrol engine with 210 kW (286 HP) in the E34 540i from about 1992 to 1996.
In our records the M60B40 is the engine for the E34 540i, which makes the match simple. Still, check the code on your old engine or send us your VIN.
Also tell us if your E34 has a manual or an automatic gearbox. The flywheel or the flex plate and some sensors depend on it.
Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
Will the M60B40 engine fit my BMW E31 840i?
Yes, if your BMW E31 840i was built with the M60B40. BMW used this 4.0 liter (3,982 cc) petrol engine with 210 kW (286 HP) in the E31 840i from about 1992 to 1996.
In our records the M60B40 is the engine for the E31 840i, which makes the match simple. Still, check the code on your old engine or send us your VIN.
Also tell us if your E31 has a manual or an automatic gearbox. The flywheel or the flex plate and some sensors depend on it.
Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
Which cars use the BMW M60B40 engine?
BMW fitted the M60B40 to the BMW E34 540i, BMW E32 740i and BMW E31 840i. These cars were built with this engine from about 1992 to 1996.
The badge on the boot is not enough to be sure. The same model name can hide two different engines, for example after a facelift or a change in emission rules. Always read the engine code stamped on the block, or look it up with your VIN.
Other engines in the same M60 family are the M60B30 (218 HP). They look alike but differ in power, parts and electronics, so they are not always a direct swap.
Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
How long does delivery of an M60B40 engine take?
Orders confirmed before 14:00 CET on a working day leave Hamburg the same day. Later and weekend orders leave the next working day. Delivery to the Netherlands, Belgium, Germany, France, Luxembourg and Denmark takes 1 to 3 working days.
Spain, Italy, Portugal, Poland, Czechia, Austria, Ireland, the Nordics and the Baltics take 2 to 5 working days. Greek and Spanish islands, Malta, Cyprus and remote areas take 4 to 8 working days. The UK and other countries outside the EU are quoted one by one.
Shipping is a flat 249 € per order. It is added once at checkout and printed on the invoice, so there is no extra fee later. Every engine is drained, sealed at each opening, strapped to a heat-treated pallet and shrink-wrapped, then photographed before it leaves the yard.
You get a tracking number when the pallet is collected. Check the wrapping before you sign, and note any damage on the paperwork.
See all M60 Engines · Search M60B40 in the shop
Will the M60B40 engine fit my BMW E34 540i?
Yes, if your BMW E34 540i was built with the M60B40. BMW used this 4.0 liter (3,982 cc) petrol engine with 210 kW (286 HP) in the E34 540i from about 1992 to 1996.
In our records the M60B40 is the engine for the E34 540i, which makes the match simple. Still, check the code on your old engine or send us your VIN.
Also tell us if your E34 has a manual or an automatic gearbox. The flywheel or the flex plate and some sensors depend on it.
Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
Will the M60B40 engine fit my BMW E32 740i?
Yes, if your BMW E32 740i was built with the M60B40. BMW used this 4.0 liter (3,982 cc) petrol engine with 210 kW (286 HP) in the E32 740i from about 1992 to 1996.
In our records the M60B40 is the engine for the E32 740i, which makes the match simple. Still, check the code on your old engine or send us your VIN.
Also tell us if your E32 has a manual or an automatic gearbox. The flywheel or the flex plate and some sensors depend on it.
Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
Is the BMW M60B40 a diesel or petrol engine?
The M60B40 is a petrol engine. It is a 4.0 liter (3,982 cc) V8, DOHC, 32 valve unit with no turbo (naturally aspirated), and it was built to the Euro 1 emission standard.
The emission standard matters for registration and for low-emission zones in many cities. When you replace an engine with the same code, the car keeps the same paperwork and the same emission class.
Petrol versions need the correct catalytic converters and oxygen sensors on the car to stay legal and to keep the engine computer happy. Reuse the parts from your car if they are in good condition.
If you are not sure which version you need, send us your VIN. We tell you the right code for free.
See all M60 Engines · Search M60B40 in the shop
How much is a replacement M60B40 engine for a BMW E32 740i?
A used M60B40 for the BMW E32 740i costs from about 2.000 € to 3.200 € in our yard. The price depends on the year, the mileage and the parts that come with the engine.
Shipping is a flat 249 € per order. It is added once at checkout and printed on the invoice, so there is no extra fee later. Inside the EU there is no import duty. Outside the EU, the receiver pays local duty and VAT.
A replacement engine is often much cheaper than rebuilding a damaged one, and much faster. The M60B40 you buy is photographed and checked in Hamburg before it is listed.
Eligible engines come with a 12 months warranty from the delivery date. It covers internal mechanical failure under normal use and correct fitting by a qualified mechanic or workshop. Not sure? Send us your VIN and your gearbox code. We match the engine family, the year window and the parts on the engine before anything is reserved, and the check is free.
See all M60 Engines · Search M60B40 in the shop
How much power and torque does the BMW M60B40 have?
From the factory the BMW M60B40 makes 210 kW (286 HP) and 400 Nm of torque. It is a 4.0 liter (3,982 cc) V8, DOHC, 32 valve petrol engine with no turbo (naturally aspirated).
Without a turbo, the power builds smoothly with the revs. A clean air intake, healthy ignition and the correct fuel are key to getting the full figure.
A used engine reaches its factory numbers when it is fitted with the matching engine computer and software, and serviced with the right oil and filters. If the engine computer from your car is a different version, a specialist may need to code it.
Every M60B40 on our site lists its year and mileage. If you want more photos or a short video of a unit, ask the desk and we send them before you pay.
See all M60 Engines · Search M60B40 in the shop
Delivery, warranty and payment
Every 540i engine we sell is drained, sealed at each opening, strapped to a heat-treated pallet and shrink-wrapped before it leaves Hamburg. You receive photographs of the packed engine and a tracking number.
Door-to-door delivery is included to the address you give at checkout. Typical delivery takes three to five working days within Germany and neighbouring countries and five to ten working days to the rest of Europe and the UK.
A 12-month warranty covers eligible internal failure when the engine is fitted by a qualified workshop with new fluids and filters. You can pay by card, bank transfer or crypto and receive the invoice by email straight away.
All E34 engines · M60 engine guide · BMW 540i engines for sale · Send us your VIN
