Class Action Lawsuit Alleges BMW Front Differentials Fail Prematurely Despite ‘Lifetime’ Fluid Claim

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A proposed class action lawsuit alleges that BMW represented certain vehicles equipped with the xDrive all-wheel-drive system as designed with front differential fluid that would last the car’s “lifetime” despite knowing that failing to change the fluid would cause the front differential to fail prematurely and require costly replacement. 

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The 17-page lawsuit against BMW of North America states that the automaker represented until the early 2010s that its vehicles’ front differential—a critical system that manages torque between the front wheels, distributes power to the front axle and helps control steering—required lubricating fluid replacement at certain mileage intervals. By the mid-2010s, BMW began to advise that the front differentials of xDrive-equipped vehicles would no longer need fluid changes, as the lubricating fluid was intended to last for the lifetime of the car, the complaint says. 

The lawsuit alleges that despite BMW’s “lifetime” front differential fluid claim, the automaker knew that failing to change the fluid would lead to premature front differential failure, given the fluid’s ability to lubricate internal components and dissipate heat would degrade over time. Per the case, the automaker never disclosed to class members and the public that the front differential in xDrive-equipped vehicles was defectively designed in that it could not consistently operate if the differential fluid was not changed. 

“Upon information and belief, BMW NA adopted and emphasized this changed policy that designated the front differential fluid as a ‘lifetime’ fluid requiring no replacement as part of a marketing strategy that was aimed to tout lower service costs and less frequent and onerous service intervals for the Class Vehicles,” the BMW lawsuit charges. 

The case says the affected vehicles include models with G05, G06 or G07 chassis codes and equipped with the BMW intelligent xDrive system (the class vehicles). Per the suit, G05 is the internal chassis code for the 2019–present BMW X5 model, G06 is the internal chassis code for the 2019–present BMW X6 model, and G07 is the internal chassis code for the 2018–present BMW X7 model.

The suit mentions that although BMW has “memorialized” in its official maintenance materials the purported lifetime nature of the front differential fluid in the vehicles at issue, the automaker “[t]ellingly” represents in those same materials the interval at which the rear axle differential oil must be replaced, with no provision for replacing the front differential lubricant.

According to the complaint, the front differentials in the BMW models at issue, unbeknownst to the public, have failed and continue to fail prematurely at “unacceptably high rates” due to the automaker’s assurance of “lifetime” lubricating fluid. Per the case, a failing front differential presents safety risks as it can cause the front wheels to lock up unexpectedly, make the vehicle difficult to steer and even cause the entire drivetrain to lock, resulting in total loss of control. 

Rather than disclose the problem, BMW has instead “continued to adhere to its marketing party line” that the front differential fluid was designed to last for a vehicle’s lifetime while doing nothing to remedy the problem, which often manifests after a car is out of its new vehicle limited warranty, the filing claims.

“The reality is that because the front differential failure generally occurs after 50,000 miles or after four years, BMW NA’s New Vehicle Limited Warranty no longer covers this failure,” the case reads. “Consumers, like Plaintiff, are instead forced to pay thousands of dollars to BMW NA and its dealers for a replacement front differential, which works to the financial benefit of BMW NA and its authorized dealerships but very much to the financial detriment of Class Vehicle owners like Plaintiff and the Class Members.” 

The BMW lawsuit looks to cover all owners and lessees of BMW G05, G06 or G07 chassis-designated vehicles equipped with xDrive, up to and including model year 2025, who either reside in Pennsylvania or bought or leased the vehicle in the state during the applicable time period.

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