Segment:
        
        
            Luxury Executive Sedan
        
     
    
    
        
            Competitors:
        
        
            Mercedes-Benz W124 E-Class, Audi V8, Lexus LS400 (later models)
        
     
    
    
        
            Powertrain:
        
        
            Smooth and powerful M60B40 4.0L V8 engine
        
     
    
        
            Handling:
        
        
            Renowned BMW 'Ultimate Driving Machine' handling characteristics for its class
        
     
    
        
            Build Quality:
        
        
            High levels of fit and finish, typical of BMW's German engineering
        
     
    
        
            Technology:
        
        
            Introduction of advanced technologies for the era, including early driver aids and sophisticated electronics
        
     
 
    
    
    
        
            Primary Coverage:
        
        
            Complete factory service and repair
        
     
    
        
            Secondary Coverage:
        
        
            Maintenance, troubleshooting, diagnostics, wiring diagrams, specifications
        
     
    
    
        
            Estimated Page Count:
        
        
            800+
        
     
    
    
        
            Type:
        
        
            Factory Service Manual (FSM)
        
     
    
    
    
    
 
    
    
    
        
            Engine:
        
        
            M60B40 V8 engine (4.0L)
        
     
    
        
            Transmission:
        
        
            Manual (Getrag 260/5, 260/6) and Automatic (ZF 4HP22 EH) transmissions
        
     
    
        
            Drivetrain:
        
        
            Rear-wheel drive (RWD) system, differential, axles
        
     
    
        
            Suspension:
        
        
            Front MacPherson struts, rear multi-link suspension, shock absorbers, springs, bushings
        
     
    
        
            Brakes:
        
        
            Front and rear disc brakes, ABS (Anti-lock Braking System), brake hydraulics
        
     
    
        
            Steering:
        
        
            Power-assisted steering system, steering rack, pump
        
     
    
        
            Electrical:
        
        
            Complete wiring diagrams, ECU functions, starter, alternator, battery, lighting, ignition, fuel injection
        
     
    
        
            Climate Control:
        
        
            HVAC system, A/C, heater core, blower motor, controls
        
     
    
        
            Body And Chassis:
        
        
            Body panels, doors, windows, interior trim, chassis components
        
     
    
    
        
            Maintenance:
        
        
            Oil changes, filter replacements, fluid checks, belt adjustments, tune-ups
        
     
    
        
            Troubleshooting:
        
        
            Diagnostic procedures for common and complex issues, symptom-based troubleshooting charts
        
     
    
        
            Repair:
        
        
            Step-by-step repair instructions for all major mechanical and electrical components
        
     
    
        
            Disassembly Reassembly:
        
        
            Detailed instructions for component removal and installation
        
     
    
        
            Diagnostics:
        
        
            OBD-I (On-Board Diagnostics) system explanation and diagnostic codes
        
     
    
    
        
            Depth:
        
        
            Comprehensive, from basic maintenance to complete engine and transmission rebuilds
        
     
    
        
            Detail Level:
        
        
            Includes torque specifications, clearances, timing procedures, and electrical schematics
        
     
 
    
    
    
        
            Type:
        
        
            5-speed manual transmission (Getrag 260/5)
        
     
    
    
        
            Type:
        
        
            4-speed automatic transmission (ZF 4HP22 EH)
        
     
    
    
        
            Automatic Control:
        
        
            Electronic control with multiple shift modes (e.g., Sport/Economy)
        
     
    
    
        
            Manual Transmission Fluid:
        
        
            BMW MTF LT-2 or equivalent (API GL-4, SAE 75W-90)
        
     
    
        
            Automatic Transmission Fluid:
        
        
            Dexron III or equivalent
        
     
 
    
    
    
        
            Length:
        
        
            4,735 mm (186.4 in)
        
     
    
        
            Width:
        
        
            1,751 mm (68.9 in)
        
     
    
        
            Height:
        
        
            1,412 mm (55.6 in)
        
     
    
        
            Wheelbase:
        
        
            2,797 mm (110.1 in)
        
     
    
    
        
            Curb Weight:
        
        
            1,630 kg (3,594 lbs) approx.
        
     
    
        
            Gross Vehicle Weight Rating:
        
        
            2,100 kg (4,630 lbs) approx.
        
     
 
    
    
    
        
            Crash Test Data:
        
        
            NHTSA (US) and Euro NCAP (Europe) data for the E34 generation, generally considered robust for its time.
        
     
    
    
        
            ABS:
        
        
            Standard Anti-lock Braking System (ABS)
        
     
    
        
            Traction Control:
        
        
            Optional ASC+T (Automatic Stability Control and Traction) system available on some models.
        
     
    
    
        
            Airbags:
        
        
            Driver's side airbag standard for 1989 models in most markets; optional passenger airbag.
        
     
    
        
            Seatbelts:
        
        
            Three-point seatbelts with pretensioners for front occupants.
        
     
    
        
            Body Structure:
        
        
            Reinforced passenger cell and crumple zones.
        
     
 
    
    
    
        
            Audio System:
        
        
            Premium Hi-Fi sound systems available, often with cassette tape players.
        
     
    
        
            Navigation:
        
        
            Early in-car navigation systems were optional on later E34 models, not typically on the 1989 model year.
        
     
    
    
        
            Cruise Control:
        
        
            Standard electronic cruise control.
        
     
    
    
        
            Diagnostics:
        
        
            OBD-I system accessible via a connector under the hood, requiring specific diagnostic tools or procedures.
        
     
 
    
    
    
        
            Oil Change:
        
        
            Every 5,000-7,500 miles or annually, depending on driving conditions (refer to manual for specific recommendations).
        
     
    
        
            Spark Plugs:
        
        
            Typically every 30,000 miles for platinum plugs, refer to manual for exact type and interval.
        
     
    
        
            Coolant Flush:
        
        
            Every 2 years or 30,000 miles.
        
     
    
    
        
            Engine Oil:
        
        
            BMW Longlife-98 (LL-98) or equivalent 5W-30 or 10W-40 synthetic oil. Check dipstick for capacity (approx. 7.5 liters).
        
     
    
        
            Coolant:
        
        
            BMW Blue Ethylene Glycol Coolant or equivalent (50/50 mix with distilled water).
        
     
    
    
    
        
            Cooling System:
        
        
            Plastic coolant expansion tank can become brittle and crack; plastic thermostat housing is also prone to cracking.
        
     
    
        
            Oil Pan Gasket:
        
        
            Leaking oil pan gaskets are common on the M60 V8.
        
     
    
        
            Head Gaskets:
        
        
            While generally robust, head gasket issues can occur, especially if the cooling system is neglected.
        
     
    
        
            ABS Module:
        
        
            ABS hydraulic unit failure is a known issue on E34 models equipped with ABS.
        
     
    
        
            Window Regulators:
        
        
            Power window regulators can be a source of failure.
        
     
    
        
            Heater Core:
        
        
            Heater core leaks can occur, often manifesting as a sweet smell inside the cabin or fogged windows.
        
     
 
    
    
    
        
            Brand Focus:
        
        
            BMW is synonymous with performance, luxury, and advanced engineering.
        
     
    
    
        
            E34 Introduction:
        
        
            The E34 generation, launched in 1987 (as a 1988 model in Europe, 1989 in North America), replaced the successful E28. It was a significant step forward in design, technology, and refinement.
        
     
    
        
            E34 Positioning:
        
        
            The 540i was introduced later in the E34 lifecycle (for model year 1994 in the US) with the M60 V8 engine, slotting above the 535i and offering a more potent and luxurious alternative.
        
     
    
        
            1989 Model Year Updates:
        
        
            For 1989, the E34 line was primarily comprised of the 525i and 535i. The 540i was not available in 1989. This manual *likely* covers early E34 chassis commonalities but the specific 540i (M60 engine) details would pertain to later model years (1994-1995 in the US).
        
     
    
    
        
            Manufacturing Location:
        
        
            Dingolfing, Germany