I few months back, I picked up a 1990 316i. Since then, I've done the rear disc brake conversion among a few other things. I'm in the middle of an M50 swap, but before I put the motor in, I decided to upgrade the stock rack. Since my car didn't come equipped with power steering, I decided a rack out of a Z4 would be a big improvement. Got the rack for about 100 Euro and purchased the u-joints needed with the correct spline count for both cars, E36 tie rods, cut down a slip shaft to the size needed, and machined some spacers. Also got some longer bolts from the hardware store. Whole process took about an hour.
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Z4 steering rack into E30
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You might want to flip those bolts over. Will make is a million times easier to work on the rack, in the event that you have to while the motor is in the car.
Definitely update is once you have driven the car. Curious as to what it will feel like. Also looks like it may give extra clearance for V8 swapped header clearance.
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