This is a '91 940SE which is for this purpose more of a 960 as it shares the interior with the 760/960 line rather than the 940. The steering column adjusts, the key is the high security type etc.

Anyway the problem is that the key will go in the lock but it will not turn it, not the old key not the new key made to code. I disassembled the thing down to the cylinder which will likewise not turn so that the release clip will not depress to release the assembly so I cannot replace it with the new one.
I reckon I will just brutalize the thing with drill, chisels and such and try to extract the thing piece by piece; what else is there?

Also the owner of a 91 940SE and had the same problem, on a highway trip, long day's drive from home. Locksmith couldn't work with it, too well protected I guess. Towed it to an excellent indy shop (Kelowna, BC) who destroyed the steering lock (big drill I think) and separated the ignition switch and wiring from the column so we could drive the car. Been that way for a couple of years, with the addition of a key JB-Welded into the ignition switch. I will install a pushbutton starter sometime...
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67 144, 85 740T, 86 740T, 91 945SE, BMW R69S, R60/2

Dear tedv,

Hope you're well. Since you have the lock cylinder out of the car, call a locksmith. A locksmith may know a way to free the cylinder from its housing.

Hope this helps.

Yours faithfully,

Spook