– Problems with the BMW transfer case have led to a class action lawsuit alleging that the vehicles jerk and vibrate, especially when making turns or driving at low speeds.
Problems with the transfer case also occur when shifting gears.
The BMW class action lawsuit covers these vehicles equipped with XDrive transfer cases, excluding M-series variants.
2019-2025 BMW X3
2019-2025 BMW X4
2019-2025 BMW X5
2019-2025 BMW X6
2019-2025 BMW X7
2019-2025 BMW 7 Series Sedan
2019-2025 BMW 8 Series Convertible
2019-2025 BMW 8 Series Coupe
2019-2025 BMW 8 Series Gran Coupe
2019-2025 BMW 3 Series Sedan
2019-2025 BMW 4 Series Coupe
2019-2025 BMW 4 Series Convertible
2019-2025 BMW 4 Series Gran Coupe
2019-2025 BMW 5 Series Sedan
2019-2025 BMW 640i xDrive Gran Turismo
2019-2025 BMW 2 Series Coupe
2019-2025 BMW X3
2019-2025 BMW 5 Series Sedan
2019-2025 BMW 7 Series Sedan
According to the class action, BMW transfer cases have defects that cause the “clutch system to improperly transmit torque between the front and rear wheels.”
The cost of replacing the transfer case fluid is also expensive: $250 to $1,300, but a transfer case replacement can cost $7,000 to $13,000. However, the BMW lawsuit alleges that dealers often require transfer case fluid replacement before replacing the entire transfer case.
The four customers who filed the class action complain that these problems should not occur because the fluid in the transfer case is filled at the factory with the expectation that it will last the life of the vehicle. In addition, the maintenance schedule does not include replacing the transfer case fluid.
But even when the transfer case fluid is changed, the lawsuit claims that many customers continue to complain about problems until they are finally told the transfer case needs to be replaced.
Based on allegations in the class action lawsuit, BMW has been aware of issues with the transfer case since May 2020, based on the service industry bulletin (SIB) 2/27/20 titled: “Jerking or shuddering of the drivetrain (XDrive transfer case ATX13-X).”
BMW’s SIB 2/27/20 says owners complain of jerking or shuddering while cornering or accelerating from low speeds, as well as driving at low to moderate loads. Dealers were told there were no warning lights or messages and that the problems could be caused by the tires, or the “factory filled transfer case oil does not meet BMW specifications.”
According to the lawsuit, BMW updated SIB on 2/27/20 in March 2025 to add more models.
The class action admits that BMW “appears to cover fluid change replacement and transfer case replacement for owners and lessees who are still within the original New Vehicle Limited Warranty.” But the plaintiffs complain that BMW won’t cover the cost of fluid changes once a vehicle’s warranty has expired, which shouldn’t be a surprise because that’s how a warranty works.
“Additionally, BMW’s SIB 2/27/20 explicitly states that replacement of the transfer case fluid is not covered by the Certified Pre-Owned Warranty or the Extended Service Contract, even though the transfer case itself is not excluded from coverage by the terms of the Certified Pre-Owned Warranty.” — Lawsuit on the BMW transfer case
The class action claims that the BMW vehicles “depreciated in value at the point of sale” because BMW failed to warn potential customers about the alleged problems with the transfer case. The plaintiffs further allege that customers also “suffered actual damages” because they had to pay to change the fluid in the transfer case.
The BMW transfer case lawsuit was filed by these customers:
Joseph Sangenito / New Jersey / Owned a 2020 BMW X5
Zhargal Dampilon / California / 2019 BMW X5
Richard Grad / Illinois / 2022 BMW X5
Kevin Finley / Illinois / 2020 BMW X5
The BMW transfer lawsuit was filed in the United States District Court for the District of New Jersey: Sangenito, et al., v. BMW of North America, LLC., et al.
The plaintiffs are represented by Carella Byrne Cecchi Brody Agnello, PC, Lieff Cabraser Heimann & Bernstein, LLP, and Heber Han, PC
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