Transfer Case Problems of BMW 3 Series

I bought my brand new BMW x3 in 2007. There were small issues in the past but withing my manufacturer warrenty period. I had my rear brake pads replaced on Jan 23, 2012. On Jan 30, 2012, when I drove my x3 out my subdivison to go to work, the brake light, abs light, and 4/4 light all on, plus load clunk type noise from rear, it was difficault to make a u-turn, managed back to home, called BMW unitedbmw dealer and towed my vehicle to dealer. They first told me that is software failure, they would try reprogram to fix, then called to tell the re-program did not work, it was mechanical transfer case actuator broken, a new one must be installed. The total charge for repair (part + labor - discount) is $2354. 97. It was in the dealer for one week. The dealer insisted that it was my bad luck, not car's own issue even though the milage is less than 40k. I did some research online, found that there are plenty of similar cases and class-action lawsuits. Looks like BMW (2007 and 2008) models have lubricant problem, later BMW switched with different lubricant. Internet estimation says that ~30% of the vehichles (2007 & 2008) demonstrated this issue. As a consumer, I am trying to urge any car maker to be responsible for their products. But I never get any notice or recall from BMW dealers or maker in the past and when the problem surfaced.

See all problems of the 2007 BMW 3 Series 🔎.