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Campaign - Rear Axle Carrier Class Action Settlement

SI B41 02 09
Body

October 2009
Technical Service

This Service Information bulletin supersedes SI B41 02 09 dated June 2009.

[NEW] designates changes to this revision

SUBJECT
Rear Axle Carrier (Sub-frame) Support Proposed Class Action Settlement

MODEL
E46 (3 Series)

INFORMATION
Under certain circumstances, a fracture in the steel body structure could form in the area around one of the rear axle carrier mounting points. As a result, a distinct clicking noise can be heard from the area of the rear axle carrier during certain driving conditions. Specifically, the noise may be heard during load reversals on the rear axle, such as when starting from a stop, engaging forward or reverse gears, or when rapidly changing gears.

As a result of the proposed settlement of a class action lawsuit pertaining to the above-noted situation, a national sub-frame inspection and repair program has been developed. Under this program, any current
owner of a US-specification E46 3 Series car may have his or her E46 inspected to determine whether any damage to the rear axle carrier support is present. If damage to the rear axle carrier support is found during the inspection, and the vehicle qualifies for the repairs, BMW will repair the vehicle using 1 of 2 approved repair procedures; either a structural epoxy repair or replacement of the rear axle carrier, depending on the evaluation of the damage.

Each vehicle is eligible to be inspected only once at no charge to the customer.

The customer letter has been sent to previous and current owners of the affected vehicles.

For complete details on the inspection procedure, refer to SI B41 01 09.

For complete details on the approved repair procedures, refer to SI B41 04 08.

The persons and vehicles eligible for the inspection and/or repair program consist of all US residents who currently own or lease an E46 vehicle.

Persons who and vehicles that do not qualify for inspection and/or repairs under this program are:

1. BMW NA, its subsidiaries and affiliates, officers, directors, and employees;

2. Insurers of Class Vehicles;

3. All entities claiming to be subrogated to the rights of Class Members;

4. Issuers of extended vehicle warranties;

5. Individuals who validly opt out of the settlement;

6. Any judge to whom this matter is assigned, and his or her immediate family;

7. Any current or former owner or lessee of a Class Vehicle whose Class Vehicle was modified for racing, whether sanctioned or not;

8. Any current or former owner or lessee of a Class Vehicle that has been modified with suspension parts and/or wheels of a different size; and

9. Any current or former owner or lessee of a Class Vehicle that has released his or her claims against BMW NA related to the Sub-frame Condition.

10. [NEW] Any vehicle in which the damage to the rear axle carrier support is a result of accident damage.

11. [NEW] Any vehicle that is determined to be a total loss.

12. [NEW] Any vehicle that has a rear axle carrier support that has been previously repaired and paid for by BMW, or the customer has been previously fully reimbursed.

13. [NEW] Any vehicle that has had repairs, other than for the Sub-frame condition, shall be borne exclusively by the customer, including, but not limited to, replacement of worn or obsolete parts that are not part of the rear axle carrier support.

Timing for the inspection and repairs - if needed:
Vehicles that are not currently covered by the BMW New Vehicle Warranty, BMW Extended Warranty, or Certified Pre-owned Warranty will be eligible for the inspection and/or repairs, if necessary, for 1 year from the final approval of the class action lawsuit. Refer to the attached customer
letter for details on how to determine the final approval date.

Vehicles that are currently covered by the BMW New Vehicle Warranty or Certified Pre-owned Warranty, at the time the court gives final approval, will be eligible for the inspection and repairs, if necessary, for 1 year from the end of the existing vehicle warranty.

If the customer had previously paid to have corrective actions carried out on the rear axle carrier (subframe) support to his or her vehicle prior to the final settlement date, he or she should refer to the claim form sent to him or her with the customer letter. This will allow the customer to request reimbursement for those repairs.

For additional details and questions surrounding this proposed settlement, please refer the customer to the following website dedicated to this topic: www.E46subframeclassactionsettlement.com ; or contact by phone at 1-866-215-8458.

The aforementioned website includes a question and answer page. A copy of this Q&A is included.

For any technical questions regarding the inspection or repair procedures, please contact your Regional Technical Engineer.

For claim form information, contact the 3rd party administrator, Gilardi & Co., at 1-866-215-8458.

If you have a customer concern, please contact Customer Relations by email.

ATTACHMENTS

















view PDF attachment B410209Q&A.
















view PDF attachment B410209Customer_Letter.





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