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I dealt with a similar issue recently. Complete loss of power past 3k and the engine was idling extremely rough. There was a code stored for vanos timing being over retarded. Apparently the vanos solenoid pack is a common issue on s54. Beisan does sell refurbed units which are a lot cheaper than buying new. Repair procedure also involves thoroughly cleaning the solenoid body. After doing that, all the power came back.
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