This S38B35 inline-six was removed from a North American-market 1987 BMW M6 purchased by the seller about 10 years ago. It was reportedly rebuilt by Markus Glarner Motors shortly after the seller’s acquisition, and about 4k miles were added while the engine was in the M6. It was then installed in a Datsun 240Z and a rod bearing was spun during a track event in 2017 resulting in a partial rebuild, again by Markus Glarner. An estimated 1,000 miles has been driven since. Modifications include a Frank Fahey crank hub, an E30 exhaust cam gear, a Megasquirt 2 ECU, larger fuel injectors, and more, while recent service is said to have consisted of an oil and filter change, syncing the throttle linkage, balancing the throttle bodies, and adjusting the valves. This S38B35 inline-six is now offered on a bill of sale in New Tecumseth, Ontario, Canada.

The 3.5L inline-six features double overhead cams, four valves per cylinder, a dual-row timing chain, and six individual throttle plates. Per the seller, the engine spun a bearing about two years ago, and Markus Glarner was commissioned to perform the repairs, which included installation of a used crank, rods, new connecting rod and main bearing shells, oil control rings, and gaskets. The process was documented in this build thread.

The block was repainted following a hot tanking procedure. Modifications are said to include a Frank Fahey crank hub, the exhaust cam gear from an E30 M3, Jet Hot ceramic coating on exhaust headers, a Megasquirt 2 standalone ECU, and larger fuel injectors. Removed factory parts are included in the sale, as is the stock exhaust cam.

A startup video has been provided above, and a compression test video can be viewed below.