It’s not BMW dealers’ fault that airbags with defective Takata inflators are being recalled. It’s not even BMW’s fault. But BMW dealers are taking a hit because they have been ordered not to sell any of the 840,000 affected vehicles—either as new or used—until their airbags have been replaced, and that means BMW of North America is also taking a hit. Help for dealers may be on the way, however, as BMW NA is preparing a “dealer toolkit” with financial incentives to help dealers weather the unpleasantness.
On March 15, BMW notified its U.S. dealers that there weren’t enough replacement airbags available, and probably wouldn’t be until sometime this summer. As a result, dealers have been told they cannot sell certain new and used 1 Series, 3 Series, X1, X5, and X6 BMWs built between 2006 and 2015 until their airbags are replaced. Owners of these vehicles should note that not all vehicles built in those years are affected
Up to 25,000,000 vehicles in the U.S. fall under the recall. Upon impact, the defective Takata inflators could deploy with too much force and send shrapnel toward the vehicle occupants. So far, ten fatalities have been attributed to these devices by the U.S. National Highway Traffic Safety Administration. BMW says it knows of no airbag-related deaths or injuries in BMW vehicles.
The financial aid that BMW NA is preparing will help dealers whose revenue streams have been reduced by the stop-sell orders. The company’s notice to dealers informed them that, “BMW NA is developing a complete dealer toolbox including loyalty incentives, loaner vehicle incentives, lease extensions, etc., as well as a decision tree on how to prioritize these tools.”
A BMW spokesperson explained, “There are many plans in the making to help our customers and our dealers get through the recall. We understand the urgency, and the details are being finalized as quickly as possible.”
In addition to loaner vehicle incentives, BMW may also reimburse dealers to use rental vehicles. A notice dated February 26 sent to dealers advised them to put owners of 2012 and newer BMWs into loaner cars, and offer off-lease loaners in lieu of rental vehicles to customers with 2011 and older units.
Dealers may also receive additional funds from BMW if they put 2016 models into their loaner fleets. Those incentives could range from $1,500 for smaller cars and crossovers up to $4,500 for 5 Series Sedans, X5s, and X6s. The extra money is designed to “help offset both registration and depreciation expenses” for the service loaner vehicles.
BMW may provide from $400 to $650 per month in floorplan assistance to dealers, depending on the vehicle model and its age. Floorplan financing is a revolving line of credit used by dealers to maintain satisfactory inventory levels.
BMW is not the only company preparing to help its dealers because of the Takata debacle. Honda of America and Mercedes-Benz USA are also setting up assistance. Honda has the most affected vehicles in the U.S. with about 5,000,000 being recalled.
The Takata airbag inflator recall is the largest automotive recall since recalls began. Production of replacement airbags is not even close to meeting demand, so there is no telling when all the affected vehicles will be made good under the recall.—Scott Blazey
[Photos courtesy of BMW AG.]
The affected BMW models and years are listed below. Note that not all models in a given year may be affected.
Affected owners in Florida, Hawaii, or Puerto Rico have been prioritized in this recall and will receive parts first. If you live in these regions, make sure to contact your local BMW dealer immediately to schedule an appointment to have your front driver and/or passenger airbag replaced. BMW recommends that no one sit in the front passenger seat until that airbag is replaced.
2008-2013 1 Series (128i, 135i, M)
2000 323i / 328i
2001-2013 M3
2002-2003 M5
2002-2006 325Ci
2002-2006 330Ci
2002-2003 325iT
2002-2003 325XiT
2006-2012 325XiT
2001-2011 325i / 325Xi
2006-2013 328i / 328Xi / 328i xDrive
2001-2011 330i / 330Xi
2006-2013 335i / 335Xi / 335 xDrive
2009-2011 335d
2007-2013 335is
2002-2003 525i / 530i / 540i
2013-2015 X1 sDrive 28i / xDrive28i / xDrive30i
2003 X5 3.0i / X5 4.4i
2007-2013 X5 xDrive30i / xDrive35i / xDrive48i / xDrive50i / M
2009-2013 X5 xDrive35d
2008-2014 X6 xDrive35i / xDrive50i / M
To see if your BMW is being recalled, visit http://www.bmwusa.com/standard/content/owner/safetyrecalls.aspx?mobileoverride=true and enter the vehicle identification number (VIN).
