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Newer or luxury vehicles have reminder sensors for routine check ups on vehicles after so many miles like oil changes and air filters you will need to find the sequence to reset the light. Also I am not sure about the air bag. Might be a loose,wire connected to the air bag
Suggest you go to some of the BMW forum sites for more detailed responses. This could be speed sensors located at the wheel hub area or an ABS module. The wires run up near and along where the brake pad sensor wires are located. Sensors aren't too hard to change and aren't too costly, the module, on the other hand is expensive.
Well because its a auto box you could have a band or pump problem which is in the gear box and is bathed in auto matic fluid oil and that could be your problem as the bands do wear down fast on a lot of cars and BMW with there power that could be you.
So take it to a auto box people and get it checked out.
On the 1994 318ic my advice is to cut the car in half so you can get to the upper mounting bolt on the starter :). If you don't want to do that, you have to remove most of the intake plenum, fuel rails, knock sensors, temperature sensors and oil pressure sensors and oil dipstick tube to get access to the bolts and wire connections on the starter body. Our car is really nice for what we use it for (towing behind a motorhome) and is in excellent condition but I would never consider another BMW after having worked on it a few times
The engine is low on oil. but assuming it is not.
The engine is either idling to low .
The engine oil pressure itself is low. The engine oil pressure switch is leaking or not reading the oil pressure in the car.
I assume there is not knocking noise from the engine.
I would check for any oil leaks on the engine .
IF there are no leaks , I would change the oil pressure sesnor or switch first .
This could lead into major engine work.
The below is taken from another site written a year ago:
What you are looking at is the Service Indicator. The green, yellow and red lights let you know when service needs to be performed. The green lights mean everything is still good. The yellow lights mean "anytime you're ready." The red lights mean do the service ASAP. There are also two other lighted areas. One says "inspection," the other says "oil change" (or oil service.) An oil change is an oil change. However, there are two inspections: Inspection 1 is normally at every other 15,000 miles; Inspections 2 is at every 30,000 miles. Your local BMW dealer should have a pamphlet listing all duties performed for each of the services. Inspection 2 can run you around $400-$800 depending on the service station/dealership's labor rates. Inspections 1 should be around 1/2 of that. You should have your oil changed about every 5000 miles. Dealership oil changes can range from $35-$65. A BMW that is well taken care of will last a long time.
FYI, don't be surprised if the SI (service indicator) board decides to **** out one day. I'm surprised to see yours is still working (they usually die within 10 years unless someone went thru the expense to have it replaced.) If/when it does go, just gauge your services by the mileage intervals I've listed above. I'd also recommend when you stop into (or just call) the dealership, go to the parts department and order an owner's manual for your BMW. Should be less than $20 and get to you in about a week unless they have one in stock. When the service tech has performed the necessary service(s), he will reset your SI board so that only green lights are showing.