BMW N63 V-8 Engine Is Defective, Class Action Lawsuit Alleges

A putative class action lawsuit was filed Monday against the luxury performance vehicle manufacturer BMW of North America LLC. Allegations in the lawsuit focus on the N63B4400 eight-cylinder engine (more commonly known as the N63).

According to plaintiff Scott Crockett, the N63 engine has serious defects including excessive burning of oil and battery consumption. He further alleges that BMW has taken insufficient measures in an attempt to remediate the problem, by attempting to cover it up rather than deal with it directly.

A visit to any online BMW enthusiast community will quickly show what members think of the N63 engine. The same complaints raised by the plaintiff in the class action lawsuit are mentioned there, much to the disappointment of the brand’s performance car enthusiasts. Compared to similar vehicles with other engines, those with the N63 engines appear to continually disappoint.

Apparently BMW is aware of the shortcomings brought forth in the class action lawsuit, as they have allegedly issued service bulletins to BMW service technicians performing warranty-covered maintenance under BMW’s Standard Maintenance Program. One such bulletin regarding the N63 engine states, “However, in a quest to ensure total customer satisfaction, please replace the 12-volt battery on a preventive maintenance basis at every engine oil service … unless the battery was replaced within the last 12 months.”

Another service bulletin allegedly instructs technicians to add double the oil than originally recommended. According to the BMW class action lawsuit, these remedies are simply being used to mask the engine defect, possibly until the 48-month or 50,000-mile warranty has concluded.

In addition to the service bulletins issued for known engine defects, the BMW class action lawsuit maintains that the “N63 Customer Care Package” is another way to gloss over the problems without addressing them directly. This care package offered customers additional inspection and replacement of other engine parts, even beyond the initial warranty. It also reduced the amount of time between services, from the initial 2-year interval to a yearly oil change. The “N63 Customer Loyalty Offer” provided customers with discounts if they were unhappy with their vehicle and wished to replace it. Lastly, the customer care package allowed dealerships to provide those who purchased the vehicle up to $50 in BMW merchandise and/or accessories.

In what some purchasers have dubbed a lemon, vehicles with the N63 engine also apparently suffer from diminished resale value. When resale buyers are looking at reviews on potential purchases, the BMWs with the N63 engine are a hard sell.

Four counts are brought against BMW in the class action lawsuit: violation of the Manguson-Moss Warranty Act, breach of express warranty, breach of implied warranty of merchantability and violation of the Kansas Consumer Protection Act.

The BMW class action lawsuit seeks to certify three Classes: a nationwide Class of tens of thousands, a Magnuson-Moss Class (for the Manguson-Moss act violation in select states) in the thousands, and a Kansas Class of BMW buyers in the hundreds.

As for relief from damages, the BMW class action lawsuit states, “Plaintiff, individually and on behalf of the Magnuson-Moss or Kansas Classes, seeks all damages permitted by law, including compensation for the monetary difference between N63 vehicles as warranted and as sold; compensation for the reduction in resale value; compensation for out-of-pocket repairs and service; towing charges incurred due to N63 vehicle breakdowns; the cost of purchasing, leasing, or renting replacement vehicles, along with all other incidental and consequential damages, statutory attorney fees, and all other relief allowed by law.”

The plaintiff is represented by Eric D. Barton, Tyler W. Hudson and David P. Barclay of Wagstaff & Cartmell LLP.

The BMW N63 Engine Class Action Lawsuit is Crockett v. BMW of North America LLC, Case No. 2:15-cv-09266, in the U.S. District Court for the District of Kansas.

UPDATE: On December 31, 2015, the BMW N63 Engine class action lawsuit was dismissed at the voluntary request of the plaintiff.