Re: Any change BMW will replace Nikasil engine? (archive)

At 92K, the engine in my 740iL gave up the ghost. Massive ring failure; oil everywhere. In the mistaken idea that my third party warranty would replace it, I authorized a mechanic to remove the heads so the warranty inspector could give it a look. $1500 later the warranty company pointed to the "no coverage for manufacturer recalls" clause in the policy and declined coverage.
I now have a headless 740 and am being told a new engine is $15,000.
Is there any change that BMW will stand by their car and replace the engine? It was given a leakdown test before I bought it and passed (according to the dealer; I never saw the results).
Any advice on how to proceed will be gratefully received.
TIA
Woe is ME

Mike, as an attorney who spends most of his time advising insurance companies, I don't see what your problem is going to be in the long run. IF the engine is indeed a "factory recall" like your warranty carrier contends, then the factory will fix it. If the factory will NOT fix it, then the warranty carrier has no business using an exclusion for factory recalls.

The purpose of such an exclusion is to keep the warranty carrier from shouldering the costs of defects the factory already has agreed to fix. There is no way such an exclusion should EVER operate to stick the customer with having to pay for the problem. Either the factory fixes it or the warranty company does.

The only way I can see this scenario not playing out is if BMW declines to fix on the ground you were not the original purchaser. However, my admittedly limited understanding is that if you bought the car used from an authorized dealer, BMW will stand behind the motor, so this scenario should not be a problem.

If the factory agrees to fix, they probably won't reimburse you for the $1500. You might ask for a credit in the amount the factory saved since you had the heads removed--free oil changes or something?

I haven't, of course, seen your actual warranty. But if your description is accurate, the only dilemna at this point is whether the manufacturer or the warranty carrier should pay for the new engine. You shouldn't have to.

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