I went with my neighbor Richard over to where they towed the charred hulk that once was his (and my) 240D.
Turns out the fire made it to the engine compartment, and burned for some time before the fire department arrived. Everything around the top of the engine - fuel lines, vacuum hoses and other combustible items have vanished.
So it looks like the engine is toast. Richard managed to save the hood-star, and I got the left front corner-light. There were a few other undamaged bits, like the alternator, and possibly the transmission, but we brought no tools and Richard will probably leave them. He does plan on returning to recover the three undamaged new tires, and four aluminum rims to use on his 250SL.
So sad!

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DrDKW