BMW: The Ultimate Exercise in Customer Disservice

November 30th, 2009

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UPDATE: In the end, after I made enough noise, BMW came through and paid for the repair.  I am grateful to them and glad that they did the right thing in the end.  But still a bit of a black mark that it took so much work to get some satisfaction.

One of my key marketing rules is “Know Your Brand.”

BMW has always seemed to get this–they understand that they sell more than a car… they sell an experience and a lifestyle.

Maintaining this experience and keeping customers happy helps BMW continue as one of the most successful luxury car companies with one of the best brands.  They continually win brand awards but they also realize the need to always make a strong effort to please customers.

In 2002 the then CEO, Helmut Panke, summed it up when he said. “What I see as our biggest risk is the possibility of complacency. We need to make sure that nobody leans back. We have to remain hungry and to keep up our desire to outperform others.”

That is why I was so shocked when I tried to get a defect fixed on my wife’s 2004 325i.  BMW has refused to take responsibility or pay for the repairs.

Fixing a defect, in warrantee OR out should be one of the easiest customer satisfaction actions BMW performs.

Here is what happened: Intermittently an indicator comes on showing there is something wrong with the rear lights.  I took the car in to the BMW dealer and mentioned this to my service advisor.  I was really surprised when he guessed at the cause before even getting up from his desk.  Upon checking the car, his hunch was confirmed.

Here is the issue as BMW states in their service bulletin: “Minor corrosion at the 8-pin rear lamp connector creates high resistance causing damage to the connector housing.”  In other words, your rear light can melt!

So what makes this a “defect” and not something that should be the responsibility of the owner?  Well, first, the fix is not just to replace a broken or worn out part.  The fix is to actually modify the original configuration.  From BMW’s Service Information Bulletin (SIB 63 03 06) “Correction: Repair the damaged wire(s) and replace damaged connector housing. Install additional ground wires to both left and right rear lamps.” (emphasis added)

Second, this defect seems very common and BMW is well aware of it as evidenced by the service bulletin, the 100s of postings on BMW forums and the numerous filings with the National Highway Traffic Safety Administration–one of which claims there was a fire involved! (Office of Defects Investigation ID Number : 10263031)

I have asked the service manager at my dealer to look into having BMW pay for these repairs but he said they declined.  I also called customer relations, opened a case but was told that they also would not step up to the plate.

We are a loyal two-BMW household who purchases the highest level maintenance packages and always services our car at the dealer (who we love along with our service advisor) so it’s very surprising to see how little BMW will do keep us (and the other owners with the same problem) happy for a problem that is clearly a defect and not a run of the mill maintenance issue.

Filed under: BMW,Customer Relations,Little things matter a lot,Product Defects,Uncategorized,Understand your brand

Comments and trackbacks

  1. Bennett C November 30th, 2009
  2. Well, first of all, NEVER buy an additional maintenance package from ANY carmaker. They are not necessary. They are purely ways for dealers to fatten their bottom line.

    BMW’s are wonderful to drive. But the days when they were the only great-driving cars on the road are long gone (thankfully for us car lovers). There is ample competition from Japan, the U.S., and now Korea (rapidly coming up.) As for reliability, check Consumer Reports.

    So unless one really wants to be seen driving a status brand, do some research and take some test drives and you’ll see that there’s a world beyond the fancy brands. Or even better, buy a 2 or 3 year old car and laugh at those spending thousands more for nothing.

  3. joshuaw November 30th, 2009
  4. Bennett, you make good points when we are discussing pure car value. But my wife choose BMW specifically because she wanted a hassle free ownership. Even knowing the maintenance package was not a good financial value she liked the peace of mind knowing she never had to worry about anything going wrong, taking our her wallet on each visit, etc.

    That is why this situation is even more disturbing. She went to BMW for a hassle free experience and is now getting hassled!

  5. Gwen November 30th, 2009
  6. LOL! I have had that same problem with my 2000 540iT (wagon) since I’ve owned it. I bought mine certified pre-owned. In fact I just had my 100K + mile service during which they reset that “check rear lights” message and replaced the bulbs. During the test drive around the block, the message returned but the lights seem to be functioning so the mechanic told me to just ignore it. I LOVE driving my BMW. I HATE dealing with the maintenance issues.

  7. joshuaw November 30th, 2009
  8. Apparently there are a lot of people trying to get this turned into a safety recall:

    http://forum.e46fanatics.com/showthread.php?p=10331140

    and

    http://www.bimmerfest.com/forums/showthread.php?t=275724

  9. Bennett C November 30th, 2009
  10. If you want hassle free above all else, then statistically you need to go with the industry quality leaders – Toyota and Honda.

    You wouldn’t even need to get an additional package with these companies. You’d save thousands in any situation (except a Lexus, made by Toyota would be on-par for purchase cost.)

  11. jonathan bloom November 30th, 2009
  12. i have had six BMWs since 1990. for the most part, i have found bmw to be very good at taking care of these types of things with the exception of a rattle issue on my first bmw – a 1990 325is. i never purchase extended warranties because i have never had to worry about them not backing products. i also believe firmly that they tend to pay closer attention to their higher end model customers. they let me down on my 3-series issue and i complained like you did. but they have bent over backwards for issues on two 7-series and three M5s (i have leased since 2000). if i was you, josh, i would take your car over to A&E performance (ask for al) and simply pay to have them fix the problem. annoying yes, but a much better service experience than a dealer (i go to bmw of mountain view, by the way for my in-warranty repairs and they have been pretty good).

  13. Tim M November 30th, 2009
  14. I have had several bmws from an 83 320i to 1990 525, an 01 330ci, an 07 X3 and currently own 3 a 2008 328i, a 2008 X5 3.0 and an 2008 roadster. I have been around these cars for years and they are just that, a car. They will break and they are not perfect. The bulb issue has as much to do if a person replaces the bulb with less expensive non factory replacement. I have seen this result in the burning and corroding of the contacts on the bulb and the tail light assembly. Most just purchase a new assembly and roll on. What I really hate is anyone who would compare these fine automobiles to a honda, toyota or a kia. take a hit on one of those fine JAP cars or Korean cars and see who comes out a winner. I bet my life on the BMW any day of the week. Thats why my wife has the X5 to haul our children around. Either that or a mini van and unless BMW starts making a minivan she will be in that x5. You cant put a price on safety. My advice is trade on a new one, they have great deals to be had right now. Take care and good luck.

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