We first posted this info on swapping an M50 motor into an E30 chassis over 20 years ago.
This picture shows the installed motor with the radiator. The total clearance between the fan and the radiator is just under 1/2 inch. Not to worry, because there is no movement off the motor using the motor mounts and trans mounts. The radiator can be either an ’89 or later e30 325i, or an e36 M50 motor radiator. We use the M50 radiator upper and lower hoses. If the car is late ’88 on, no modification of radiator support and mounting or the expansion tank mounting is needed. Any older model e30 requires upgrading to ’89 support and expansion tank mounting.
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