Install a new radiator cap.
If you KNOW some part has a problem fix that first. As richie46 said: install a new radiator cap.
Thermostat could be stuck closed. Has it over heated? If the coolant pushes out with the engine cold, then you probably have a blown head gasket. This can be tested with an exhaust tester at the reservoir. But , with engine cold, remove the reservoir cap, put your hand over the opening. Have some one start it. If you feel pressure build up right away, it is the head gasket.
SOURCE: 1994 bmw 318i
Where is the water pump on 94 BMW 318, Is it behind the Fan or a seperate unit. is it easy to replace?
SOURCE: DASHBOARD RADIATOR INDICATOR LIGHT COMES ON WHEN ENGINE IS COLD
you might need to get the water level sensor checked, it may be faulty
SOURCE: battery or radiator light on a 1999 BMW 318i SE
The below is taken from another site written a year ago:
What you are looking at is the Service Indicator. The green, yellow and red lights let you know when service needs to be performed. The green lights mean everything is still good. The yellow lights mean "anytime you're ready." The red lights mean do the service ASAP. There are also two other lighted areas. One says "inspection," the other says "oil change" (or oil service.) An oil change is an oil change. However, there are two inspections: Inspection 1 is normally at every other 15,000 miles; Inspections 2 is at every 30,000 miles. Your local BMW dealer should have a pamphlet listing all duties performed for each of the services. Inspection 2 can run you around $400-$800 depending on the service station/dealership's labor rates. Inspections 1 should be around 1/2 of that. You should have your oil changed about every 5000 miles. Dealership oil changes can range from $35-$65. A BMW that is well taken care of will last a long time.
FYI, don't be surprised if the SI (service indicator) board decides to **** out one day. I'm surprised to see yours is still working (they usually die within 10 years unless someone went thru the expense to have it replaced.) If/when it does go, just gauge your services by the mileage intervals I've listed above. I'd also recommend when you stop into (or just call) the dealership, go to the parts department and order an owner's manual for your BMW. Should be less than $20 and get to you in about a week unless they have one in stock.
When the service tech has performed the necessary service(s), he will reset your SI board so that only green lights are showing.
SOURCE: Water leak coming from back of engine. 1998 BMW 318i 1.9
see attached pic of the coolant hoses and see if any are in the vicinity of where the water is coming from at the rear of the engine:
http://www.realoem.com/bmw/showparts.do?model=CG83&mospid=47506&btnr=11_1567&hg=11&fg=35
here is your heater core which would also carry coolant. it has 2 hoses that go in and come out of the core. see if water is coming from one of these hoses.
http://www.realoem.com/bmw/showparts.do?model=CG83&mospid=47506&btnr=64_0663&hg=64&fg=15
head should not have to be removed to replace the hoses and/or heater core, but it will not be the easiest job either.
good luck & hope this helped.
SOURCE: idle problem
check the airflow meter it may be stuck and make sure the electrical connection to it is not loose and also check the hose leading to it are not loose or cracked they tend to crack at the bottom where you cannot see it unless you remove it and check
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