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I know I have only had my Sportster a short time but can someone more in the know inform me if the E36 2.5 L engine has a rev limiter fitted to it. If not then I have a problem.
If accelerating hard in second gear, I have to concentrate as I am getting used to how quickly it accelerates, I get to about 60 /70 mph very quickly then it appears as if a rev limiter is cutting in and I have to change up to stop the engine spluttering and getting it back to revving normally in the next gear.
Is this normal please ? If not I have a problem.
Almost certainly a limiter of some sorts in the ECU. My 318is certainly had one. I haven't tried finding the rev limit yet on my M20 powered Sportster as I haven't fitted the automatic underpants changer....
I would be surprised if there are many cars built recently that do not have a rev limiter as part of the ECU. My 325i Sport (M20) limited at about 5700 IIRC. The effect, as you have found out, is a rather unpleasant loss of power and a hint to change up! I would imagine the limit on the M50 is probably slightly higher than the M20.
It sounds very much like a rev limiter as it would have had one built into the ecu as standard.
Might be worth considering fuel starvation though. Is the main pump able to supply enough & is the pressure regulator allowing enough through to keep up with what the engine needs when its right up the top of the rev range. We had a similar issue with the Sportster last year which just resulted in turning up the flow on the regulator.
Guys, thank you very much. My instincts were just that, but its nice to have more knowledgeable minds confirm it.
Robin.......I thought thats one of the reasons we have one of these cars, to feel the acceleration. Have also had it up to 105 on the clock, but just a tad noisy ( wind noise ).
Mike & Jon.......I will have to research that as "I know nothing" about regulators ( Manuel quote from Faulty Towers, I am sure you all remember that ).
, but if you are not bothered about that stick a set of carbs on it. 
the m20 has a limiter too.