The BMW 318is came with a 1.8-liter four-cylinder, designated as the M42. After cleaning and inspecting our new purchase, it seemed that the engine was really the only major issue with the car. After removing the valve cover, we noticed something was missing, something important. The timing chain had broken and was laying at the bottom of the front …
" ..BMW 318is: What's Wrong With the Engine?"
It's missing two cylinders? 
Bump for a new video being added to this update!
Man, that's pretty rare (knock on wood) and usually the result of other carnage with the tensioners or guide rails.
Hope that catch pan is empty.
If anything, running M42s are a dime a dozen. I've bought a couple of them (including transmission) for $300 each. That may be the way to go here - cheaper than rebuilding, really.
Of course be sure to scavenge your engine for useful things, especially if the timing gears are in good shape and the crank thrust bearing surface is good (both pretty uncommon on high-mileage M42s).
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