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Although I have never torn open my M46, my previous post was just in my limited experience. I own an 83' 242ti with M46 that has been run on ATF, and it shifts very nicely and OD works well at 206k, and my mom's car that I used to drive has an M46 with 10w30, or just 30wt and it shifts noticeably harder and isn't as smooth at 175k. Could be a combination of previous owner care, and clutch condition, or just fluid difference.
As far as I know, the recommended fluid is type F ATF, so thats what I use.
Zack
Silver 83' 242Ti (206k)
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