Have been in touch with BMW and this was their reply. It may be of some use.
We can confirm that there was an issue discovered with some M52 engines fitted to certain BMW models between approximately 1995 and 1998. The problem has been referred to as premature bore wear.
BMW fitted some engines with a lining made from Nikasil to the cylinder bores. After time, it was found that the high level of Sulphur in some UK fuel started to eat away at this lining and therefore the bores were unprotected. As a result, the bores were prone to premature wear. Since the problem was highlighted, BMW stopped using Nikasil linings and instead fitted cast iron liners to the cylinder bores which were not susceptible to the Sulphur of UK fuels.
A characteristic of a vehicle that is suffering from premature bore wear, is high oil consumption which will get worse as time goes on. The vehicle is then likely to lose power and will eventually cut out and not restart; coupled with blue smoke from the exhaust when attempting starting.
We must stress that not all vehicles fitted with a Nikasil liner have experienced this problem. As this was not a recall item, we will not be able to clarify if your vehicle would be one of the specific models that were affected. It is not possible to identify what lining the bores are coated with from the outside of the engine with markings or engine numbers.
The only way to identify whether a vehicle is suffering from a Nikasil issue is to have a compression test carried out by an approved BMW dealer. If as a result of this test, a loss of compression is found to be caused as a direct result of this issue; the dealer may then be able to pursue an out of warranty claim. This may not be a part of the standard 4 Plus Service at Williams of Liverpool so please mention the Nikasil issue when you take your vehicle in.
We recommend that if the vehicle is demonstrating the above characteristics, that you arrange for your vehicle to be inspected at your earliest convenience.
We hope this information is of use to you and if we can be of further assistance please feel free to contact a member of the Customer Information Department, using one of the methods shown below.
Hope this is of some use, will let you know if my compression test shows anything.
Michael
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