This BMW E30 316i is being converted into a lightweight race car by a talented German mechanic. They are replacing the factory 1.6 L M40B16 inline-four with a 2.0 L K20A inline-four from Honda Integra Type R that makes 217 hp (162 kW) and 152 lb-ft (206 Nm). The owner is converting the K20 to a dry sump system and mating it to a BMW five-speed manual transmission. Other upgrades planned are KW Competition 2-way adjustable coilovers, 4-piston calipers, and fiberglass hood and trunk lid. You can see more photos and follow the progress on the project’s FB page.
Source: Projekt E30 Race Car FB page