NickJonathan said:What happens when VANOS fails? Is it terminal?
The VANOS isn't an issue with the S54 engine. The problem with the S54 engine ("Engine of Damocles") was in the early stage of production, back in 2001 or so, when around 50,000 engines, mostly installed in the E46 M3, had wrong specification bearing shells fitted which caused bearing shell failure. BMW did a recall for more than 48k E46 M3, but failed to do this for the S54 Z3 MC/R, with the consequent significant number of bearing shell failures occurring in the Z3MC/R - I know, it happened to my Z3MC in 2009 and BMW gave me a brand new engine
Throughout its production, BMW continued to fit revised parts (bearing shells, connecting rods,con-rod bolts oil pump etc.) and by the time the E85/6 was built in 2006/8 all the problems had been rectified. The S54 is an engine masterpiece and in real world driving conditions it produces steadily increasing torque from about 2.5k revs to the redline. Just make sure that you use the recommended oil, always allow the engine to properly warm up and service it properly and enjoy!