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NHTSA 05-98
March 15, 1999 Contact: Tim Hurd

Tel. No. (202) 366-9550


BMW 540i Year: 1999
BMW 540iAT Year: 1999
BMW 740iA Year: 1999
BMW 740iLA Year: 1999

Number Involved: 250
Dates of Manufacture:  September - October 1998
Defect:   On certain passenger vehicles equipped with a 5HP24 automatic transmission, premature wear of the ring gear can occur, leading to the loss of 1st, 2nd, 3rd, and reverse gears. If this problem occurs, the car may no longer operate in reverse, lst, 2nd, or 3rd gears.

Remedy: Dealers will replace the automatic transmission. Owner notification is expected to begin during February 1999. Owners who do not receive the free remedy within a reasonable time should contact BMW at 1-800-831-0117.

[NHTSA Recall No. 99V005]

NHTSA said it is publicizing the recalls to alert consumers about safety problems and encourages them to take action. Under federal law, safety problems must be remedied without cost to consumers. Currently, 70 percent of the owners of vehicles with safety problems have the recall work performed.

NHTSA said manufacturers are required to mail a recall notice to all purchasers, owners and dealers when a safety defect or noncompliance with federal safety standards is found. The agency urges owners to wait until they receive notification from the manufacturer before contacting their dealers to schedule the repair work. Not all vehicles of a particular make and model may be subject to the recall.