Heavy flood caused HydroLock of my '94 M60 3.0 engine. Darn! this wagon is pretty restored and a clean machine, with some $10000 added over past 6 years to keep it nice and stock.

Now, I am considering swapping in a 4.0 M60 B40.

I live in Hawaii, and the used engines are in California at Bavarian Salvage...concerned about the Nikasil leakdown problem. They say they have no Alusil engines. Used engines come with 2 year guarantee, leaktested.

I am told my ZF tranny will bolt right up to the 4.0.

I will need wiring harness and brains for 4.0...do I need new control for the tranny too?

Would I be smarter to get a matching tranny?

How about differential? My wagon rear end is high geared, like 3.08.
Will it be ok for the 4.0? should I lower it? Too much hassle?

I just want to get running, and have a good independent BMW shop to do work. They said around $3000 for the swap. Is that reasonable?
About 20 hours to do job?

Hoping to get running again in a couple of weeks!

Any advice will certainly be appreciated.

Thanks, and Aloha!
Surfer Bob