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MOTRS

E30 3-Series

1982-1994 / Sedan / Convertible / Estate / Germany

Critical Engine, M20 (320i, 323i, 325i, 325e)

Head Gasket Failure

Symptoms

Coolant loss without visible external leak. White smoke from the exhaust (coolant burning in the combustion chamber). Overheating. Milky emulsion under the oil filler cap. Coolant in the oil (oil level rises, oil appears grey or milky on the dipstick). Bubbles in the expansion tank with the engine running.

Cause

The M20 head gasket is a known weak point. The head bolts are stretch-to-yield (torque-to-yield) design that loses clamping force over time. Thermal cycling and the aluminium head expanding at a different rate to the iron block contribute to gasket failure. Overheating events, even brief ones, dramatically increase the risk of head gasket failure.

Fix

Replace the head gasket with the head removed and resurfaced.

Use ARP head studs instead of the factory stretch bolts, this is the single best preventive modification for the M20.

Cost: $1,200-2,000 at a workshop; $300-500 DIY if the head doesn't need machining.

ARP head studs: $250-350.

Cost mentioned in fix
Cost: $1,200-2,000$300-500$250-350

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