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Firstly, it's probably worth setting the record straight on these engines! They have a reputation for head gasket failures, perhaps one that has been hyped out of all proportion by the exposure on BBC's Watchdog, and as a result, all Rovers suffer HGF according to the uninformed! Whilst there are design issues at hand that should have been addressed sooner, or at least culpability accepted, the fact that HGF occurs on many cars is often the result of a problem elsewhere that has not been addressed. These are alloy engines and the appropriate maintenance and checks of the cooling system are essential as on any other make. I would suggest, for the definitive and unbiased explanation, you should read Roger Parker's excellent discussion on some of the causes of HGF, and if you are considering this engine, and you are concerned about the reputation, then this should clarify the issues.
The K Series is an increasingly more common choice, particularly for the Midget, but also in one or two B's. Frontline Costello of Bath have specialised in this for the Spridget and offer most parts necessary to convert, but no-one has really specialised in the K Series into the B, presumably because of low demand. The basic 16v 1.4L offers a similar 103bhp to the older B series unit with half the weight penalty. This should improve handling being lighter at the front, and the power-to-weight ratio will be far better than a standard MGB. The unit needs to be tilted to fit under the bonnet, and units prior to 2000 will, with the exception of the VVC, have a distributor off the rear of one of the cams, which will mean losing the heater box. The engine could be mounted further forward to overcome the problem, but the position is largely dictated by the use of the Ford Type 9 box and adaptor kit for this from the likes of Hi-Gear. The 1.6L offers a little more power up to 120bhp (I stand to be corrected), but the 1.8L offers 120-135bhp and the 1.8L turbo (75/ZT) or VVC offers 160hp, which is of course academic since removing the catalytic converter and factory airbox will improve breathing (I have heard that a 143bhp VVC unit has been on the rolling road producing 157bhp). There are plenty of specialists offering upgrades for the K series, though, which should net some useful gains. You are probably likely to get reasonably low mileage engines for minimum spend with good parts supply longer term. Fuel economy should be good, but as to aural entertainment, you will have to work hard on the exhaust design! The unit below is the 1.8 K series engine:
Below is the 1.8L Turbo unit but is fairly limited in numbers having only been fitted to the ZT/ZT-T 160 and 75/Tourer.
Below is the VVC unit, the obvious choice if you are looking at a K Series.
And in the flesh... The above photo is from an article in Enjoying MG (the MGOC magazine - Oct 2003) and shows a 1.8L 120bhp unit fitted to a BGT. This was a one-off conversion, and although the owner runs a motorcycle engineering business he has no plans to produce a kit, more's the pity. See detailed photos on the feature car belonging to Mick, as well as following Ed's progress on his VVC conversion. For more information on the K-series, here are links to other pages with excellent material: Engine Specifications of interest (Note the brochures show slight variations in figures depending on model and these values are a guide only to indicate potential as it will depend on the fuelling choice and air intake and exhaust design):
Just as an aside, am I the only one thinking that a mid-engined BGT is a possibility? Take a look at the top photo again!
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