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Coolent Syste on 2001 BMW 540i

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Check coolent level continues to be displayed on panel
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Have you checked that the coolant level is at its correct level not sure about your model BMW but I have seen a lot of the plastic coolant housings and expansion tanks crack and leak on German cars. On some cars if the coolant concentration is too high the light will come on as the sensor reads inaccurately but if the level is OK the sensor may be bad.