BMW has joined the growing number of automakers facing class-action lawsuits for systemic defects in some models. In this case, a class-action lawsuit has been filed against BMW of North America LLC and Bayerische Motoren Werke AG (BMW). The lawsuit, filed in the United States, accuses BMW of a defect in the xDrive transfer case that causes jerking when cornering in 2019–2025 models. The plaintiffs allege that BMW sold certain vehicles with defective transfer cases and are demanding an explanation.
The drivers claim that the defect causes jerking or vibrations in the vehicles while driving
This class-action lawsuit has been filed in a federal court in New Jersey. In the suit, the plaintiffs allege a defect in the drivetrain that causes a noticeable jerk and shake. Specifically, plaintiffs Joseph Sangenito, Zhargal Dampilon, Richard Grad, and Kevin Finley claim that the defect causes jerking or vibrations in the vehicles while driving, especially when shifting gears, cornering, or driving at low speeds. Therefore, the focus of the claims is the transfer case, which is responsible for distributing torque between the vehicle’s axles.
The plaintiffs’ claims arise from BMW’s failure to disclose and/or fraudulent concealment of the transfer case
In this specific case, the lawsuit also emphasizes that BMW was allegedly aware of the owners’ complaints. According to the plaintiffs, the problem affects a wide range of 2019–2025 vehicles: from the X3, X4, X5, X6, and X7 SUVs to various passenger cars. The plaintiffs’ claims arise from BMW’s failure to disclose and/or fraudulent concealment of the transfer case defect and the problems it causes, and its statements regarding the world-class quality of the vehicles in this class,” states BMW’s class-action lawsuit.
The class action cites a service bulletin that describes similar symptoms
One of the problems is that, precisely in cars that rely on the refinement of their chassis, even a slight vibration in the transmission quickly ruins the charm of daily driving. To support their argument, the class action cites a service bulletin that describes similar symptoms and details actions taken at dealerships, including changing the transfer case fluid or servicing and calibrating it. Therefore, Sangenito, Dampilon, Grad, and Finley maintain that BMW knew about the alleged defect but did not inform consumers and refused to fully reimburse them for the repairs. What has further strained the situation is that when this fluid issue arose, many owners did not expect maintenance and were unprepared for the expenses once the warranty expired.
This implies a sum of money that’s out of reach for most people
We’re talking about an almost lifelong extra expense for those who owned one of these models considered defective by consumers. The transfer case defect affects a wide range of BMW models from 2019 to 2025, including the X3, X4, X5, X6, X7, 3 Series, 4 Series, 5 Series, 7 Series, and 8 Series, according to BMW’s class-action lawsuit. Some rough estimates suggest that changing the fluid can cost several hundred dollars, while replacing the entire transfer case can range from $7,000 to $13,000. This is a sum of money that’s out of reach for most people, and something you hope to avoid when buying a new car.
BMW, for its part, was aware of the defect since at least 2018, based on its own design data and some consumer complaints, according to BMW’s class-action lawsuit. The plaintiffs are seeking compensation for repairs and loss of value and have requested a jury trial. Those affected claim that the automaker issued a service bulletin in 2020 acknowledging the problem and advising dealerships to replace the transfer case fluid. This, according to the users, did not fix the factory defect. Ultimately, the lawsuit is proceeding, and we will have to wait to see how it is resolved in the fairest way.