offered in either short-stroke 2.0 or revised 2.5-litre formats. The 2.0-litre was later dropped on introduction of the 1.8-litre turbo for emissions purposes. A diesel engine was provided through BMW Group channels. Engineered by Rover Group and Steyr engineers for transverse mounting, the 4-cylinder M47R (M47 Rail) differed from M47D20 engines found in the E46 3 Series and E39 5 Series by featuring a direct injection common-rail system, different turbocharger and more sophisticated systems for temperature management.

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