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My experience with M104.980 which uses the CIS-E fuel injection...
Purchased car in 2001 with 92,000 miles. It now has 170,000 miles (just returned from a 3,000 mile road trip).
Before I bought the car the following items were done to the engine: leaking EHA (54k), injectors R&I (69k), head gasket and coolant pump R&I (85k). I have all the records. I do not know if the above work was required or not - a lady owned the car and had all work done a dealer.
Since I have owned the car, the following engine work has been done: R&I injectors and fuel distributor (bad gas 108k), fan bearing support bracket (137k).
I'll address your points with my experiences:
1/ I love the engine, especially its power curve - it has much higher (numerically) gearing than the later M104s and thus the power matches the gearing well. I don't feel that it needs to be "trashed" at all. I do not baby it and as you can see, I have had very few problems. It has a great sound when under full song.
2/ Wiring problems with the CIS-E M104 are much less than the later M104s, with HFM-SFI, which had more wiring (due to fully electronic injection system) very close to the engine heat. To date, no wiring problems have occurred on my engine. Also, no valve problems to date.
3/ Engine has only just started (in last oil change interval) to use a bit of oil - about 1 quart in 5 to 6000 miles. Prior to this, it has never used any oil. I use synthetic - Schaeffers last 40,000 miles, Mobil 1 prior to that. Previous owner used dino. Again, virtually no oil consumption.
4/ I foresee no need for an engine overhaul anywhere in the near future. The engine is running as well now as when I purchased the car. On the other hand, my '90 300E M103, at the same mileage, has oil consumption in the 1 qt per 1000 miles range, and has so for the last 50,000 miles. It needs new guides soon...probably did a long time ago.
So, I give MY M104.980 engine two thumbs up. It is, of course, certainly only a sample of one, but my experience has been very positive. I would take this engine over the M103 any day. Personally, I would not hesitate to get that 300TE-24, if in good condition with records.
BTW, the '90-92 300SL used the M104.981 - this also was an M104 with CIS-E, I believe.
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