general problems of the 2000 BMW 540

Tl-the contact owns a 2000 BMW 540i. The contact stated that after shifting into reverse, the engine seized without warning. The vehicle was taken to an independent mechanic for diagnosis where it was advised that the vehicle experienced a hydro-lock failure. The vehicle was not repaired and manufacturer was not notified. The approximate failure mileage was 180,000. Kmj.

While driving in massachusetts on 495n at about 5:30pm I smelled something burning. Checked my gauges and all seemed well, thought it may be a wood burning stove in the area I just kept driving. I turned off rt495 and onto rt 119. About a mile down rt119 I noticed a lot of smoke building up inside the car, I then realized my car was on fire and before I can pull off the road the inside of the car filled with smoke and burned my eyes and I was choking a lot. I slammed it into park, shut the key and jumped out the car. A car behind me pulled over and said he was following me and smelled my car burning and tried to signal me. Littleton, MA fire and police arrived shortly after. Fire department disconnected my battery in the trunk and opened the hood to look for flames. Not seeing flames they did see heavy smoke and smelled something burning. Shortly after that my car was taken away on a tow truck to BMW in nashua, nh. BMW determined that a faulty/failed electro mechanical thermostat has caused the fire and the damage estimated so far to be about $4,000. 00 they told me this is a problem seen before and they had no suggestions as to why this happened but did say it could happen again! while my insurance company (commerce insurance) refuses to make any payments for damages, they claim it was caused by a faulty part and that BMW is responsible. BMW tells me that my car is out of warranty and this part is just a failed part. I think we are dealing with something more severe than a failed part. It's just a good thing I was able to get off the road in time before I was overcome by the smoke and toxic fumes from burning wires in the car. Realizing this can happen again, I do not feel safe driving that car another day and have not decided to get it fixed or crushed.