Three problems related to differential unit have been reported for the 2000 BMW Z3. The most recently reported issues are listed below.
On 24jun2011, I swerved from a parallel lane to avoid being sideswiped. No contact was made between vehicles. However, I noticed a noise coming from the rear of the vehicle. The vehile has a manual transmission. I took the vehicle to an auto body repair shop. After examining the vehicle they told me that: the flange/bracket that held the differential in place had a complete hair-line fracture; and, that a substantial number of spot welds holding the body on to the frame had failed. I made contact with the local BMW dealership mcgrath BMW, ocated in westmont, IL and told them of the incident. They stated that they did not undertake body repairs and directed me to a firm which did all types of body and structural repairs and was accredited by BMW. I was given an estimate for the repair of between $5,000-$6,000, and was told that there was no program offered by BMW to share in the cost of the flange/bracket and body repair. I went back to my local body shop and told them to estimate the cost and I also reported the problem to my auto insurance (state farm). An adjuster from state farm reviewed the failures and stated that the condition was one of a problem in manufacture and not covered by my auto insurance. My body shop then gave me an estimate of a not to exceed figure of approximately $2,500. I told them to undertake the repair. The flange/bracket has been replaced and reinforced and the body and frame have since been rewelded at a total cost to me of $1600. Additionally, I spent an additional $100 for a alignment (firestone of countryside, IL) the local body shop is douglas auto body, 4015 eberly avenue, brookfield, IL (708) 485-7774 - they are a body and structural repair shop approved by state farm insurance. This vehicle has been used by me as a street vehicle and not for racing or track use of any kind. The failures seem to be a mfg. Design flaw.
While on a trip I noticed an odd knocking noise from the left rear of vehicle during accelleration while in 1st gear. Upon further inspection I found the car's sub frame in the area supporting the rear differential mount fractured and breaking away from the vehicle. The noise was due to the emergency brake cable that had popped out of its retention clip, due to the physical movement of the supporting material around it. If this had not happened, I would not have noticed the failure until the mount had broken away entirely. Since this mounts the rear axle of the vehicle, it is possible for this to fail at high speed causing loss of control of the vehicle with a high potential of accident and/or injury. I am having this repaired immediately before driving the vehicle any further. This problem appears to be common to the "m" version and many of the straight 6 cylinder version of this vehicle. My version is a 2. 8 liter standard roadster. It is likely a stress failure due to the higher torque of these engines. To correct this failure the damaged material needs to be rewelded and reinforced with additional support.
Niello BMW of sacramento checked my Z3 2000 for traction control light is on advise, and some fluttering noise came out during acceleration. They found out that there's metal shavings in the differential. They repaired it and replaced it with new one as what they advised to me, plus they replaced thr brake pads, rotors, sensor drive belts, cover air bag and that cost $3200. 18 which I paid. I questioned them if that's still be covered by the warranty since I bought that car in may 1999, and they said," no it's not under warranty. " so I paid the whole amount of $3200. 18. So I drove my car and in a matter of days the car broke again, stopping in the middle of freeway, and that time I heard some fluttering noise again underneath, which scared me. So I immediately called some help and took my car to niello BMW in sacramento for repair and it them a week to repair my car. After it was being repaired I traded it in with Lexus RX 330 in roseville since I'm scared already driving BMW and don't trust that car again.
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