BMW E65/E66 (2001–2008) — History, Engines, Weak Points, Fuel Consumption

The BMW E65/E66 is the fourth generation of the 7 Series, produced from 2001 to 2008. This is the model that kicked off BMW's modern era: Chris Bangle's controversial "flame surfacing" design with its broken trunk line, the industry's first iDrive controller, and a significant leap in electronic content — at the cost of noticeably more complexity than the E38 it replaced.

History

The E65 (short wheelbase) and E66 (long-wheelbase Li) replaced the E38 in 2001, introducing an entirely new design language that not everyone embraced at launch but that set the direction for the entire BMW lineup for the following decade. It was the first 7 Series to feature the iDrive controller for infotainment, climate, and settings — initially criticized for the sluggishness and confusing menus of its first-generation software (CCC).

A major 2005 facelift (LCI) brought updated headlights, bumpers, and a second-generation iDrive that was noticeably more responsive. At the top of the range sat the 760i/760Li with a new 6.0 L N73 V12 — the first 7 Series engine with direct gasoline injection (High Precision Injection).

Production ended in 2008 with the arrival of the more conservatively styled F01/F02. Despite the styling controversy, the E65/E66 set the technological course BMW followed for every generation that came after it.

Engines

Petrol — inline-six:

• M54 — 3.0 L in the 730i early in the production run; a durable, mechanically simple naturally aspirated engine.

Petrol — V8:

• N62 — 4.4 L in the 745i/745Li, later 4.8 L in the 750i/750Li post-facelift; one of BMW's first production engines to use Valvetronic on the intake valves.

Diesel:

• M57 — 3.0 L inline-six in the 730d.
• M67 — twin-turbo V8 in the 740d, torquey and, at the time, one of the most powerful diesels in the segment.

Petrol — V12:

• N73 — 6.0 L V12 in the 760i/760Li, the first V12 in the 7 Series with direct injection.

Weak Points

• N62 coolant transfer pipe in the block's V. The generation's most notorious issue: a plastic coolant pipe routed inside the V of the block cracks and leaks over time. The repair is labor-intensive, requiring partial disassembly of the upper engine, so it's worth budgeting for when buying an N62-powered car.
• N62/N73 valve stem seals. Wear with age, showing up as blue smoke from the exhaust on cold start — a typical ailment on these engines past roughly 150,000 km.
• Rear air suspension. As with its predecessor, the air struts and compressor develop slow leaks over time — a common expense.
• First-generation iDrive electronics (CCC). Early control units can lag and respond slowly; facelift models (CIC / later CCC) are noticeably better.
• Active Steering. On equipped versions, the system can develop faults with age — worth checking specifically during inspection.
• Transmission mechatronics on high-mileage cars that haven't had regular transmission fluid changes.

Fuel Consumption

Average combined-cycle figures — expect higher real-world numbers, especially on long-wheelbase and V12 versions:

Engine	Model	Consumption, L/100km
M54	730i	~12–13
M57 (diesel)	730d	~8–9
M67 (diesel V8)	740d	~10–11
N62 (4.4 L)	745i	~14–15
N62 (4.8 L)	750i	~13–14
N73 (V12)	760i	~17–18

Owner Feedback

Recurring themes from reviews and enthusiast forums, without quoting specific owners:

Opinions on the exterior still diverge two decades on — some call Bangle's design bold and ahead of its time, others never came around to the broken tail treatment. On ride and comfort, feedback is far more unanimous: the suspension and cabin finish are praised for feeling noticeably more modern than the E38. N62 owners almost always recommend checking the coolant transfer pipe first when buying — many have already replaced it preemptively and advise others to do the same. Early iDrive draws regular criticism, with owners noting that facelift cars (post-2005) got a noticeably more usable system. V12 owners aren't bothered by any of it — they cite the N73/M67's smoothness and quietness as the main case for the flagship version.

Photos