What do these get for MPG?
I get about 30-38, but M46 and I drive slowly (not that there's really a choice...just more or less noise/smoke really).
The 3-speed auto is remarkably slow (only choice in 2 series), but in turbo form the ZF 4-speed auto box works nicely with the diesel. No boost loss on shifts, keeps it in the power band.
Could be worse, could be an '79-'80 Euro diesel taxi with a 3-speed auto and a D20 (only 5 holes and N/A)? Or a Vanagon...1.6L rabbit diesel on its side...
The steering rack is probably an early cam and needs to have the assist left-right balance adjustment done (easy enough) if not leaking and viable otherwise. No fun when they get like that.
If it heats up under load, it can be a cooling system malady or seeping HG. Much less expensive to repair that sooner rather than later...or not at all if you got the car inexpensively enough and don't break down somewhere crucial
I have the 700 M46 diesel bits, but IIRC the bell housing is clocked differently as the engine stands up straighter in 700s. I think only the flywheel/clutch fork and bushing for the M46 input shaft are the same. Everything else is different. I don't think there's an easy way to use the larger 700 clutched cooling fan with the auto trans cooler in the radiator, though maybe the shroud is large enough to accept it. Most original diesel radiators are pretty woefully slugdged up by now.
A 3-row, shorter hoses, tropical fan clutch and MLS HG and studs are nice upgrades for those. Diesel engine with a disaster of a T-belt setup and 4 cam bearings , weird life-threatening cold start device on the injection pump, and crank pulley that has to be tightened by hand to an outlandish torque value.
I passionately hated them trying to make book time on them. Take forever to repair, everything strangely in the way for how spacious the engine bay is, leak like a sieve, 1/8" cracks allowable per the book in the head between valve seats, wind up tired and stinking of diesel. . Mostly blotted those memories out.
Engine absolutely must be warmed up properly, oil pickup needs to be in good order, thin synthetic oil for cold running, good injector spray pattern and the cooling system has to be in good shape. It can't lose hardly any coolant under load or have anything marginal or else it usually ruins the head.
I really liked my euro audi 4000 with a 5-cylinder turbo diesel of that engine...had that at the same time as the peugeot turbo diesel.