— BMW transfer case problems have caused a class action lawsuit that alleges the vehicles jerk and shudder, especially when making turns or driving at slow speeds.
Transfer case issues also occur when shifting gears.
The BMW class action lawsuit includes these vehicles equipped with XDrive transfer cases, excluding any 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 to change the transfer case fluid is also expensive at $250 to $1,300, but a transfer case replacement can cost $7,000 to $13,000. However, the BMW lawsuit alleges dealers often require replacement of the transfer case fluid before replacing the entire transfer case.
The four customers who filed the class action complain these problems shouldn't occur because the transfer case fluid is filled in the factory with the expectation that it will last for the life of the vehicle. Additionally, the maintenance schedule does not include transfer case fluid replacement.
But even with changing the transfer case fluid, the lawsuit argues many customers continue to complain about problems until finally being told the transfer case should be replaced.
Based on allegations in the class action lawsuit, BMW has been aware of transfer case problems since at least May 2020 based on service industry bulletin (SIB) 27-02-20 titled, “Jerking or Shuddering From The Driveline (XDrive Transfer Case ATX13-X).”
BMW's SIB 27-02-20 says owners complain about jerking or shuddering during cornering or accelerating from low speeds, and also driving with low to medium loads. Dealerships were told there were no warning lights or messages, and the problems could be caused by the tires, or the "factory-filled transfer case oil does not meet BMW specifications."
The lawsuit says BMW updated SIB 27-02-20 in March 2025 to add more models.
The class action admits BMW "appears to cover the fluid change replacement and transfer case replacement for owners and lessees that are still within the original New Vehicle Limited Warranty." But the plaintiffs complain BMW won't cover the cost of changing the fluid if a vehicle warranty has expired, which shouldn't be a surprise because that's how a warranty works.
"Furthermore, BMW’s SIB 27-02-20 explicitly states that transfer case fluid replacement is not covered under the Certified Pre-Owned warranty or Extended Service Contract even though the transfer case itself is not excluded from coverage by the terms of the Certified Pre-Owned warranty." — BMW transfer case lawsuit
The class action contends the BMW vehicles have "suffered a diminution of value at the point of sale" because BMW didn't warn potential customers about the purported transfer case problems. The plaintiffs further assert customers have also "suffered actual injury" because of having to pay to change the transfer case fluid.
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 case lawsuit was filed in the U.S. 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, P.C., Lieff Cabraser Heimann & Bernstein, LLP, and Heber Han, P.C.