While can not say for certain that the tranny will receive the engine, I would recommend that if you are replacing your engine with an upgraded unit that you upgrade the tranny as well. What you have to remember, no matter how much you LOVE your ride, the 1.8 is a base model. You best bet is upgrading to an E46 and calling it a day, or go with an E30 and go mod crazy! The E36 just is not the best candidate. Have fun!
30 seconds of mahem then a tranny bouncing down the road...
I don't know about a 318 but the upgrade on a 323 to 328 sure works excellent. My 2000 323i runs like new with more power.
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