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if vvt steppa motor ie screwed in to rear of head has a issue the ecu will detect it and will force a protection mode where the vvt and vanos will go in to a sort of limp mode,, also on the right side ie looking in engine bay you will see the sensor that reads the position of the vvt cam these can go faulty,, also as part of that sensor there is a coil that is screwed to the cam with allen bolt so poss to replace these go wonky sometimes ,
also the camshaft vanos oil control rings do wear old these are within the first cam journals ie one on exhaust camshaft and one on inlet camshaft,, its poss to replace these rings they are like small piston rings as such they control the oil to vanos for valve timing,,
 

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was the head all built up by them ie all the spring fingers on rear of eccentric cam followers to inlet camshaft,, or did you reuse the cams from the old head, yes on the end of eccentric camshaft for vvt there is a 3 10mm bolts that hold it to end as such, on the eccentric shaft there is a coil mounted to it vie a single allen bolt,
why did the head get changed
 

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i got a citreon with same engine at mo been a project in spare time,, this had been cooked so badly and has same faulty as yours everything now rebuilt first start runs fine then gets to running temps and just switches and rattle from cam area,, when i get time to work it out i will post results on here for people,, think my next test is oil pressure gauge on it from cold see if pressure drops at point of noise,, if does then non return valve or oil pump maybe,
 

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think the bmw software insta d would have such info maybe but how to find it i dont know as rarely use it, it is possible the dme has been toasted,, i suspect the citreon i got is that due to over heated 02 sensor were cooked and spiked the ecu on 5v rail maybe,, ie the 02 sensors generate eletrical charge ie 600c 0,2v to 0.9volt when get really cooked they poke more at the ecu and can hurt them,
 

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i have no reference points with that diagnostics tool as never use one like it, diagnostics i tend to use has actual and prescribed values showing, yours does show the vanos positions 59 and 60 degrees if thats on idle my autocom shows 35 and 36 on a 2008 mini one after a rebuild and everything was right on that car think that scan was 8 months ago and car still driving around well.
you may find the cat and 02 sensors are damaged from the engine failure ie oil or coolant etc,
 

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very common for cat and 02 sensors to be damaged or polluted with oil residue from oil burning,, there a trick in the trade but its a naughty one in the wrong hands i guess,, that said i always do this before doing engine refresh as dont matter if cook the rings or stem seats etc as all are getting replaced anyway,,, i start car get to running temps,, i then pull the coil pack wire clip off number 1 gearbox end and rev car until cat gets red in colour then put the lead on again keep reving until cat stops going red and then repeat this a few times,, this will turn the cat in to a furnace as the 1 cylinder with no spark will just add petrol fumes to cat and 02 sensors ,,,WARNING do this to long and will hurt it big time, but short controlled bursts i have brought a few back to life after,
also all of them after a rebuild take a good 5 cold to hot to cold runs to settle down from past dealings with these things,, not all scanners are equal,,, the 3k snap on diagnostics i use at work is really good and gives a side figure to all live data runs that can be trusted,, also with the support package snap on do and links to other garages who in put data about faults cured and found to help other users with a data base is really good,, but a 3k to buy it plus a year sub fee on top,, hence why i say for £50 autocom is about the cheapest good level scan tool for the money that offers a good live data options and also allows to work with all ecu's and will code most things etc,
 

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Vanos timing switching but sometimes the commanded and actual values were 20-30 degrees off. this would make me do a oil pressure test first off, then if i had 30 psi hot on idle increase to around 40psi mini at 3k perfect should be 80psi using a gunsun oil pressure gauge ie what i have in my tool box .. if good pressure then possible oil control solonoids or vanos sprocket while changing these would deffo replace the oil control rings in first camshaft journal main dealer part when these wear out the system will loose pressure to vanos sprockets and cause vanos to free wheel and cause all kinds of issues including rich running,, another issue i have found for running rich is under the inlet manifold the fuel tank vent valve can fail and dump tank fumes in to inlet manifold and cause rich running, but going on what you have found on live data i would say its a vanos issue
 

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might have a answer to this i finally got in to a project i had in with same engine, same sort of thing was over heated and i changed the head on it but reused the camshafts and vvt assembly and rebuilt it,, so when i had rebuilt it i did not see that the spring fingers were not in the correct groove in the rear of the lift buckets , i will put a pic of how they should sit to the
Auto part Family car
Auto part
Auto part
bucket you'll under stand when see it,
i found they kept coming off the groove then would sit on the rollers and cause a issue where the lift on valves and this would cause all kinds of issues on some cylinders, there is a special tool to place these spring fingers link below for a idea and boy its way to much money, i found two pairs of vice grips to keep spring curls down worked and sorted it,, when everything is correct you can rotate the inlet camshaft and have zero noises ,
link below for special tool
looking at your diagnostics and smooth running's and number 1 cylinder ie gearbox end is different form the others would say either have same fault on 3 cylinders of a fault within cylinder 1,
 

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put a 27mm spanner on the inlet cam shaft if it free wheels ie can move then its faulty i have had issues with way to many of them to be honest, also found the after market ones are crap genuine only,, little tip buy them from a Peugeot main dealers as 207 fs or fw engine codes ie same gear and only £54 uk money bmw want for same part £360,, also if tensioner has locked up solid that can cause drag on the vanos and will prevent it turning and once again only fit a genuine tensioner and latest spec as latest one is a gentle spring and longer throw so much better pic below for the difference
Auto part
 

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also make sure the springs sit in the square cut out on trailing edge and not further towards the middle roller if that makes sense
 

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Hi Cody4130, sorry to drop this in now, over a year since you posted, however can't help but notice the damage to the cylinder head. I guess that could have been done by a number of things - but one possible cause would be a valve seat dropping out, a pet topic of mine! Was there similar damage to the piston crown? I have added a picture of my partner's n12 after a valve seat dropped out.
i got pet project at mo done same trick on a 2010-60 plate n16 with 87k on clock
Light Automotive tire Wood Circle Metal
Wheel Automotive tire Motor vehicle Alloy wheel Hubcap
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had head skimmed and new seat and guide and valve fitted , had it running for a few minutes other day and found oil pump solenoid faulty so just put a new in
 

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yes it is , my theory is a couple of things one off these engine run to hot by design ie they are designed to use a controlled lean out to add power and reduce fuel use, bi product of this is heat over time this heat takes its toll, then theres cars that get over heated these tend to drop more than one seat out as the heat expands it all, another one is what i have one in for at present ie project where the seat cracks and drops out in bits , the running at 105c to 112c temps is a big reason behind it
 
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