International Warranty Manual Importer - 2017.2 PDF

BMW Group
BMW / BMW M / BMW i / MINI -

International Warranty Manual
for Importers
Version: 2017.2
Approval: 07.07.2017 by Mr. Ganser, AQ-14
File Source: The current version is located under:

wgm.bmwgroup.net
It cannot be ensured that printed versions of this document are still

valid.
All changes are marked in yellow.
07.07.2017
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BMW / BMW M / BMW i / MINI - International Warranty Manual Importers of 69
BMW Document Type: Manual

Group Valid for: Importers concerning the brands BMW, BMW M, BMW i Version status:
and MINI Version 2017.2
Title: BMW / BMW M / BMW I / MINI - International Status: Released
Warranty Manual for Importers
Amendment Log:
Version Content Author, Approver,
Department, Department,
Date Date
2013.1 New Release Schidlmeier, BP- Dr. Ralli, BP-40,
40, 30.04.2013 30.04.2013
2013.2 Integration of BMW i, Wallbox and smaller adap- Schidlmeier, BP- Dr. Ralli, BP-40,
tations 40, 26.07.2013 26.07.2013
2014.1 Routing in case of BMW i, Storage of defective Schidlmeier, BP- Dr. Ralli, BP-40,
parts and smaller adaptations 40, 30.05.2014 30.05.2014
2015.1 Definition and processing of breakdown related Schmid, BP-43, Dr. Ralli, BP-43,
claims, reimbursement in case of goodwill and 13.03.2015 13.03.2015
communication to the customer, new process
chart of service process, storage of defective
parts, documentation of battery status before
handover to customer, update of department
codes / contact persons
2015.2 Claiming of recycling costs for the disposal of Li- Schmid, BP-43, Ganser, BP-43,
Ion (high-voltage) batteries, Update of Appendix 11.09.2015 11.09.2015
2016.1 Updated scope of the manual, electronic Service Schmid, BP-43, Ganser, BP-43,
History, usage of sublet codes, conditions for 18.02.2016 18.02.2016
Rust Perforation Warranty, principles for goodwill
claims, carrying out technical campaigns,
ALPINA vehicles
2016.2 Update definition of a warranty and goodwill re- Ott, BM-53, Ganser, BM-53,
lated breakdown, customer mobility and tech- 16.08.2016 16.08.2016
nical campaigns, brake discs and brake pads,
technical campaigns
2017.1 Integration of third party services and treatment Skopko, AQ-14, Ganser, AQ-14,
of international transit customers, updated scope 09.02.2017 09.02.2017
of parts warranty brake discs and brake pads as
well as reservation of technical campaigns
2017.2 Updated scope of Diagnosis, Long-Term Stor- Skopko, AQ-14, Ganser, AQ-14,
age, Original BMW / MINI Parts and Exchange 07.07.2017 07.07.2017
Parts as well as Parts and Additional Parts Costs
and Extended Warranty Coverage
07.07.2017
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Preface
The requirements and standards of warranty processing are constantly changing. Not only
technological advances, but also the orientation towards sustainability resulting from the energy
transition, require the regular update of the BMW / MINI warranty manual.
The following chapter have been updated in the current version (highlighted in yellow):
II Glossary, 2.3.2, 4.3, 4.5, 4.9, 4.11.4, 6.2.2 and III Appendix.
This document defines the invoicing of all central and local scopes that are processed via a
warranty or goodwill claim. These guidelines are obligatory, regardless of whether the costs are
borne locally or centrally.
The markets are responsible -on the basis of this document- for ensuring the standardized
settlement of all warranty and goodwill claims.
The BMW warranty manual must not be handed over to third parties. Reprinting, even of ex-
cerpts, is not permitted.
This document will be valid as of August 1st, 2017. Previous versions herewith will not be valid.
Munich, July 2017
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BMW / BMW M / BMW i / MINI - International Warranty Manual Importer of 69
Contents
I. LIST OF ABBREVIATIONS 7
II. GLOSSARY, DESCRIPTION OF MOST IMPORTANT TERMS 8
1 WARRANTY FUNDAMENTALS 10
1.1 Scope 10
1.2 Responsibility of the Markets 10
1.3 Conformance to Regulations 11
1.4 Basic Terms 11
1.5 WG-Stages 12
1.5.1 WG-Stage 1, Warranty 12
1.5.2 WG-Stage 2, Standard Goodwill 12
1.5.3 WG-Stage 3, Extended Goodwill 12
1.5.4 WG-Stage 4, Pre-Delivery Defects 12
1.5.5 WG-Stage 7, BSI and BRI 12
1.6 Warranty Types 12

1.6.1 Warranty Type 1, Vehicle Warranty 12
1.6.2 Warranty Type 2, Parts Warranty 12
1.6.3 Warranty Type 3, Exchange Parts Warranty 13
1.6.4 Assignment to the Correct Warranty Types 13
1.7 Start of Warranty 14

1.7.1 Warranty for Vehicles (Warranty Type 1) 14
1.7.2 Parts Warranty (Warranty Type 2 and 3) 14
1.7.3 Market-Specific Regulations 14
1.8 Warranty Periods 15
1.9 Warranty - Overview 16

1.9.1 Warranty and Goodwill Service Process (Warranty Type 1) 16
1.9.2 Processing of a Warranty Case (Warranty Type 1) 17
2 DELIVERY, STORAGE AND PDI 18
2.1 Inspection of Damage 18
2.2 Incorrect and Short Deliveries 18
2.3 Storage and Care 19

2.3.1 Short-Term Storage (up to one month) 19
2.3.2 Long-Term Storage (over one month) 20
2.4 Handover to the Customer 20
3 CUSTOMER COMPLAINTS 22
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3.1 Discussing the Complaint with the Customer 22
3.2 Check whether Warranty or Goodwill Applies 23
3.3 Customer Mobility in Event of Warranty Repair 23
4 WARRANTY AND GOODWILL PROCESSING 24
4.1 Type and Scope of the WG-Repair 24
4.2 Documentation of WG-Cases with Pictures 24
4.3 Repair Order 25

4.3.1 Defect Codes 26
4.3.2 Flat Rate Units 28
4.3.3 Sublet Codes 31
4.4 Time Recording 33

4.4.1 Calculation according to Flat Rate Units 33
4.4.2 More information on Time Recording 33
4.5 Diagnosis 34
4.6 Damages because of Paint and Rust 34

4.6.1 Paint Warranty 34
4.6.2 Rust Perforation Warranty 35
4.6.3 Authorisation Procedure for Paint and Corrosion Damage 35
4.7 Third Party Services 36
4.8 BMW i 36
4.8.1 Service Formats 36
4.8.2 Costs of Routing 37
4.9 Original BMW / MINI Parts and Exchange Parts 38

4.9.1 Quality Defects Determined Before Installation of Parts 38
4.9.2 Quality Defects Determined After Installation of Parts 39
4.9.3 Wallbox 39
4.10 Storage of Defective Parts 40
4.11 Goodwill 40
4.11.1 Principles 41
4.11.2 Types of Goodwill Authorisations 42
4.11.3 Goodwill as a Marketing Instrument 43
4.11.4 Extended Warranty Coverage 44
5 WARRANTY AND GOODWILL CLAIM 45
5.1 Description of the Claim Fields 45
5.2 Transmission from Market to BMW / MINI 47
5.3 Submission Time 47
5.4 Resubmission and Later Claims 48
5.5 Goodwill Claim 48
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5.6 Claiming Procedure in case of a Breakdown 48
5.7 Claim Assessment 49

5.7.1 Manual Claim Processing 49
5.7.2 Results after Claim Assessment 50
5.8 Documentation of Warranty and Goodwill Claims 51
6 WARRANTY AND GOODWILL REIMBURSEMENT 52
6.1 Procedure for Initial Credit Note 52
6.2 Cost Types 52

6.2.1 Labour Costs 52
6.2.2 Parts and Additional Parts Costs 52
6.2.3 Consumables and Small Parts 53
6.2.4 Taxes 53
6.3 Reimbursement of Goodwill Cases 54
6.4 Checking Credit Notes 54
7 SPECIAL FORMS AND CASES OF WARRANTY 55
7.1 Technical Campaigns 55

7.1.1 Information to Markets and Customers 55
7.1.2 Carrying out Technical Campaigns 56
7.1.3 Completion Status and Billing of Technical Campaigns 57
7.2 Warranty and Goodwill Abroad 58

7.2.1 Treatment of international transit customers 58
7.3 Other Special Cases 59
8 LEGAL TERMS 62
8.1 Abatement 62
8.2 Withdrawal from Contract 62
8.3 Legal Disputes 62
III. APPENDIX 64
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I. List of abbreviations
AIR Aftersales Information Research

ASAP Aftersales Assistance Portal
BMW AG Bayerische Motoren Werke Aktiengesellschaft
BRI BMW Repair inclusive
BSI BMW Service inclusive
CoC Centre of Competence
eSH Electronic Service History
FRU Flat rate unit
IdAS Identity and Access Management System
ISTA- D Integrated Service Technical Application - Diagnosis
ISTA-P Integrated Service Technical Application - Programming
KPI Key Performance Indicator
KSD Commercial Service Data
NSC BMW National Sales Company (BMW subsidiary)
OT Open time respectively working time (job time without allowance)
OTC Over the Counter Sale
PDI Pre-Delivery Inspection
PuMA Technical Product- and Measures Management Aftersales Tool
RTK Parts Return Process
TC Teile Clearing (Parts Clearing)
VIN Vehicle Identification Number
WG Warranty and Goodwill
WXE Warranty Extranet (within S-Gate Portal)
WT Working time respectively open time (job time without allowance)
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II. Glossary, Description of Most Important Terms
Term Description
AIR (Aftersales Informa- AIR is the information dealer tool in After Sales for commer-
tion Research) cial, technical and vehicle information
Authorisation Approval to what extent BMW AG or the market takes a share

in possible warranty and goodwill costs
BMW / MINI All BMW processes are also valid for the sub brands BMW M
and BMW i;
All MINI processes are also valid for John Cooper Works
BMW Group BMW AG and their national sales companies
BMW organisation BMW AG and NSCs, as well as importers, authorised dealers

and authorised service workshops, which do not belong to
BMW Group
BMW partner NSCs and dealer organisations as well as importers, which do

not belong to BMW Group
Dealer organisation Generic term for authorised dealers and service workshops.
Defect code 10-digit number used to describe the cause of failure. The
fault-causing part always has to be specified.
Diagnosis The tools and documents of the workshop-tool ISTA contain

electrical and non- information for troubleshooting on vehicles of the BMW
electrical Group.
The BMW Group and the supplier companies have agreed on
the technical content. (see chapter 4.5)
Documentation, manda- Warranty documents must be accessible at all times. Reten-

tory tion period depending on local law but at least 5 years (see
chapter 5.8).
Flat rate units (AIR / KSD) Basis for the correct reimbursement of labour costs.
Market(s) Generic term for Importers
PuMA Handling of the technical support for vehicle product prob-

lems between dealer organisation, market and BMW.
Regular customer These are customers with a national vehicle registration num-
ber/license plate. BMW/MINI used vehicles sold by the dealer
count as self sold (regular customers), as the dealer is the re-
seller of these vehicles.
Resubmission, later claim Possibility to submit forgotten items to a previously submitted

claim respectively to hand in new aspects or descriptions in
case of rejected WG-claims at a later time.
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Sublet codes Used for better transparency of the warranty reimbursement

of the different types of costs (such as replacement vehicle,
towing costs or third party services).
Technical campaign Proactive measure (test verification, modification or repair) to

avoid customer complaints.
TeileClearing Component-specific technical helpdesk with an authorisation

for the replacement of defective parts.
Third party services Work carried out by third party companies (e.g. paint).
Transit customer, Interna- These are customers, whose vehicle is not licensed / regis-
tional tered in the country of the repairing dealer / vehicles that on
the date of repair have a foreign license plate and foreign reg-
istration. The registration number of the vehicle must always
be stated in the comment box of the claim for WG-stage 3.
Warranty and goodwill Valid warranty and goodwill cases can be submitted to BMW
claim Group via a warranty and goodwill claim.
Warranty period Legally defined time period in which a contractor or vendor

has to provide warranty for deficiencies on a product.
Warranty stages Distinctive feature to assign the costs to the respective cost
classifiers (BMW AG, Market, BSI etc.).
Warranty start date Defines the point in time to which the warranty period starts
(for vehicle and parts), according to the regulations in chapter
1.7)
Warranty types Distinguish whether the warranty was purchased with the de-
livered vehicle, new part or as an exchange part.
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1 Warranty Fundamentals
1.1 Scope
This BMW / MINI warranty manual is valid across the group for the processing and settlement
of warranty and goodwill claims between Bayerische Motoren Werke Aktiengesellschaft (here-
inafter referred as BMW AG) and Importers (hereinafter named as markets) with respect to the
brands BMW (incl. BMW M and BMW i) and MINI (including John Cooper Works) (except mo-
torcycle and lifestyle products; contacts see appendix 3). The applicable valid importer con-
tracts serve as basis for this.
1.2 Responsibility of the Markets

The warranty departments of the markets are responsible for creating national warranty guide-
lines for their dealer and service organisation. The present manual describes the current valid
warranty and goodwill process, which must be adhered to. Possible deviations in the national
warranty manual have to be agreed with the “AG Central Warranty Department”.
Changes to this manual must be made public to the dealer organisation within 4 weeks.
The Head of Aftersales and the Head of Service of the NSCs, company owned stores and im-
porters are responsible for the technical and formal correctness of the warranty and goodwill
processing. The warranty department assess the submitted claims and may reject unjustified
claims. Rejected claims will be debited to their dealers by the markets. The reasons of rejection
have to be considered for future claims.
Discrepancies determined in the context of retrospective analysis will be followed up and in the
case of unjustified claims will be retrospectively debited. In this context the presently valid pro-
cessing requirements in the current international warranty manual are compulsory.
Each market is responsible for the correctness of the warranty and goodwill processing in its
own territory. Furthermore, each market and their dealer organisation is responsible for per-
forming technically perfect warranty and goodwill work within economically reasonable limits.
The markets are to ensure that the requirements are met and must run checks in their country.
Furthermore, decisions are to be recorded in such a way that BMW AG can easily follow them.
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Suitable information material shall be developed for associated dealers along with respective
training activities for the dealers. Therefore, a “Web based training warranty and goodwill” has
been developed and can be ordered at the particular local training department.
1.3 Conformance to Regulations

Claims that turn out -even in retrospect- to be unjustified, will be charged to the respective
market.
The “Central Warranty Department (Warranty Audit)” can audit the markets at any time regard-
ing the compliance of processes and standards and the effectiveness of control mechanisms.
The “Central Warranty Department (Warranty Audit)” performs random samples in individual
cases.
1.4 Basic Terms

The warranty is (as opposed to a guarantee) a legal liability, according to which the seller
(based on the sales contract) is obliged to provide a product, which is free from material defects
and deficiencies on title. However the retailer as a seller is responsible only for defects which
were already in place at delivery of the product. The customer as a purchaser can claim defi-
ciencies only within the legally defined warranty period.
The warranty is legally regulated by the so-called “shifting of the burden of proof”.
Within the first six months of the warranty period the seller must provide evidence of the relia-
bility of the product. Within the remaining warranty period the claimant must provide evidence
that a failure (deficiency on the object) was already present at the delivery of the product. BMW
AG voluntarily relinquishes its right to enforce the shifting of the burden of proof, which is unfa-
vourable for the customer, because the customer has to prove at the end of 6 months after
purchasing the product that the deficiency was already present at the delivery of the product.
In the case of warranty it is always the seller (dealer, supplier, etc.) who is the contractual partner,
i.e. the market is the warrantor towards their dealer organisation. Dealers are warrantors to the
customer. BMW AG does not provide a manufacturer’s warranty on their products.
Warranty content is the most economic correction of the defect in accordance with the tech-
nical requirements by repair or replacement of parts (replacement parts if available), excluding
the compensation of consequential or direct defects. Within the warranty period the repair of
the defect has to be free of charge for the customer.
Beyond the legal warranty period the BMW organisation can provide goodwill, where required.
This is a voluntary "concessions/courtesy" towards the customer outside of the contractual ob-
ligation. There is no entitlement by the customer or dealer for goodwill. In certain situations, the
BMW organisation can accept all or part of the costs of the repair, although the warranty period
associated with the purchase has already been expired.
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1.5 WG-Stages
The market has to submit the warranty claims so that they contain all the essential information
to facilitate the assignment to the correct WG-stage.
1.5.1 WG-Stage 1, Warranty
Services and expenses to which BMW Group is legally or contractually obliged.
1.5.2 WG-Stage 2, Standard Goodwill
Services and expenses covered voluntarily by BMW Group in part or in full, over and above any
contractual or legal liability on the basis of an internal decision.
1.5.3 WG-Stage 3, Extended Goodwill
Services and expenses covered by BMW Group in exceptional circumstances and beyond any
legal or contractual liability. WG-stage 3 expenditures are decided and covered by the market
in the context of their own goodwill budgets.
1.5.4 WG-Stage 4, Pre-Delivery Defects
Acceptance of services for deficiencies remedied prior to delivery of the vehicle to the customer
or rather until a maximum mileage of 100 km. Not applicable for transport damage and defects
for which the dealer organisation or its transport contractors are responsible.
1.5.5 WG-Stage 7, BSI and BRI
“BMW Service Inclusive / MINI Service Inclusive” packages are processed with the aid of the
warranty system. Services from these packages are invoiced under WG-stage 7. For further
details please refer to the “BMW Group Service Inclusive - International Manual“.
1.6 Warranty Types

The following warranty types for warranty and goodwill have to be distinguished:
1.6.1 Warranty Type 1, Vehicle Warranty
Expenses for remedying defects on vehicles.
If a part fails again during the warranty period, the repeat repair is still subject to Warranty type
1, if the customer has not made any financial contribution.
1.6.2 Warranty Type 2, Parts Warranty
Expenses for remedying deficiencies on original BMW / MINI parts and original accessories at-
tached to the vehicle.
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1.6.3 Warranty Type 3, Exchange Parts Warranty
Expenses for remedying deficiencies on original exchange parts. This Warranty type applies in
the same way as warranty for Original BMW / MINI parts.
Original BMW / MINI exchange parts are high-quality parts. They meet the high quality require-
ments of BMW AG in every respect. Original BMW / MINI exchange parts have the same scope
of warranty as new parts. This does not lead to any disadvantages for customers, rather an
active contribution to environmental protection (recycling) is achieved.
Furthermore, the regulations of the product information “Parts: Guidelines for Original BMW
and MINI exchange parts (return parts chain)” have to be considered (they can be found in
ASAP).
Note: In cases of warranty or goodwill, Original BMW or MINI exchange parts are to be installed.
Only the replacement value of the exchange part will be reimbursed, not the value of the corre-
sponding new part.
1.6.4 Assignment to the Correct Warranty Types
General case: Part was purchased after original vehicle purchase or independently from vehi-
cle purchase by the customer and has a warranty claim  Warranty type 2/3
In the following special cases parts warranty (warranty type 2 or 3) applies, if the part has
to be exchanged a second time:
− Part was replaced under goodwill, but in this case the customer made a significant financial
contribution to the repair costs (parts and / or labour)
− The previous repair was covered under WG-stage 7
− The previous repair was paid by third parties (e.g. insurance company) and the participation
must be confirmed through an invoice
Important: Optional accessories, such as decorative strips and mirror caps have to be pro-
cessed under warranty type 2, provided that they have not already been installed ex factory (this
can possibly be checked by the data of the standard specification in the original equipment
serial accessories list of each vehicle).
Note: If the initial repair has been completely accepted by BMW under the warranty or as good-
will, this is not parts warranty! I.e. this part is only entitled to warranty within the remaining vehicle
warranty via warranty type 1 (see also chapter 1.7 and 1.8).
In the case of part or exchange part warranty or goodwill, only the component concerned can
be billed via warranty types 2 or 3. The date of first registration and total mileage of the vehicle
has to be entered in the comment field.
Any subsequent damage caused by the component falls under Warranty type 1 (vehicle war-
ranty / goodwill) and in the case of goodwill is decided on the basis of first registration and the
total mileage. For any subsequent damage, a goodwill authorization has to be made and this
approval must be appropriately documented. A reference must also be made to the installation
date of the part causing damage in the comment field.
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1.7 Start of Warranty
1.7.1 Warranty for Vehicles (Warranty Type 1)
The warranty for the vehicle begins (“vehicle warranty start date”):
a) at the time of vehicle delivery to the end customer,
b) with the registration of the vehicle (e.g. as demonstration car),
c) when the vehicle may no longer be sold as a new vehicle under local law (e.g. vehicles in
stock, usage as demo car), or
d) when exceeding 500km / 300 miles or possibly another valid limit concerning to local law
whereas the earliest date shall prevail.
The market has to ensure that for each vehicle for which a warranty claim is made, the corre-
sponding “vehicle warranty start date” has been entered that satisfies the aforementioned con-
ditions. For this reason, the market has to oblige its dealers, to report the “vehicle warranty start
date” immediately.
If the “vehicle warranty start date” is incorrect or not available, then the correct “vehicle warranty
start date” has to be determined based on the valid documents (as evidence; date of the new
car invoice from the BMW dealer) as proof and entered and corrected in the system. The doc-
umentation must be kept in the vehicle file.
Important: If for pre-production vehicles the first day of use cannot be determined, the pro-
duction date is used as the warranty start date. The date of the sale/delivery to the customer is
not considered as the warranty start date. Furthermore, it should be considered that all pre-
production vehicles are excluded from the warranty, as long as the vehicle is not upgraded to
series-production status (Info from “central upgrade department” / “Zentrale Hochrüststelle”).
1.7.2 Parts Warranty (Warranty Type 2 and 3)
The warranty for parts begins (“part warranty start date”)
a) with the day of installation of the part into the vehicle by a BMW / MINI authorized dealer
with the date of performance, i.e. applicable is the purchase or repair date, or
b) in case of the so called „over the counter sale“ (OTC) with the invoice date of the parts
invoice to the end customer.
Note: In the case of warranty or goodwill repairs where the costs have been covered 100% by
BMW Group, the warranty start date for the subsequent repair does not restart, but rather the
remaining vehicle warranty applies (vehicle warranty start date) via warranty type 1 (see also
chapter 1.5 and 1.7).
Important: The special regulations in chapter 7.3, “Other Special Cases” must be obeyed.
1.7.3 Market-Specific Regulations
There are also market-specific special agreements that go beyond the warranty mentioned
above. However, these special agreements apply only in the country of origin and only for vehi-
cles / parts sold in the country of origin.
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Special national arrangements and the specific details of their invoicing are to be arranged by
the market so that they are unambiguously distinguished from the aforementioned warranty
and that a smooth processing of these cases is assured (see also chapter 7.2, “Warranty and
Goodwill Abroad”).
1.8 Warranty Periods

Vehicles 24 months unlimited mileage from warranty start date
Original BMW / MINI

parts / exchange parts 24 months unlimited mileage from warranty start date
For a part exchange under warranty type 1 the period pro-

ceeds according to the remaining warranty period of the vehi-
cle (“vehicle warranty start date”).
For a part exchange under warranty type 2 or 3 the period of

24 months unlimited mileage applies from the “part warranty
start date”. Example cases see chapter 1.6.4, “Assignment to
the Correct Warranty Types”.
Rust perforation 12 years unlimited mileage for vehicles with warranty start
date as of 01.01.2004
Paint 3 years unlimited mileage for vehicles with warranty start date
as of 01.01.2004
High voltage battery

(high voltage battery units)
ECE-versions Gen2 E72, F04, F10h, F30h, F01h/F02h up to
a maximum mileage of 100.000 km or maximum 5 years from
warranty start date, whichever comes first
ECE-versions Gen3 F15, F30, F45, G11/G12, G30 and F60
up to a maximum mileage of 100.000 km or maximum 6 years
from warranty start date, whichever comes first
BMW i (I01, I12) up to a maximum mileage of 100.000 km or
maximum 8 years from warranty start date, whichever comes
first
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1.9 Warranty - Overview
1.9.1 Warranty and Goodwill Service Process (Warranty Type 1)
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1.9.2 Processing of a Warranty Case (Warranty Type 1)
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2 Delivery, Storage and PDI

The objective of checking the vehicle before handover to the customer is the identification of
damage, dirt contamination, corrosion or missing parts on / in the vehicle.
2.1 Inspection of Damage

Checking of possible transport damage
Immediately after delivery each vehicle is to be thoroughly inspected for any transport damage
- at overnight delivery not later than the following day. A detailed guide on inspecting and pro-
cessing of transport damages can be found in the “BMW Group Transportlogistics - Operations
Manual Distribution”.
Note regarding delivery complaints with parts

Delivery complaints for parts (including packaging and transport defects) can be initiated, ac-
cording to the RTK guideline (to be found in the dealer portal), via the familiar complaint process
at BMW Parts.
Note: Transport damage cannot be claimed under warranty rather must be billed instead via
the transport insurance policy. The delivery complaint for parts has to be submitted to BMW
Parts. Complaints about deliveries are not covered under warranty.
2.2 Incorrect and Short Deliveries

Vehicle deviates from order. As with the examination for any transport damage, the scope of
equipment and the accessories pack must be compared closely with the scope of the order
immediately after delivery of the vehicles.
Complaints in relation to scope of equipment that have not been installed or incompletely in-
stalled shall be notified immediately to the market’s warranty department, before a claim is sub-
mitted so that the complaints can be quickly examined in consultation with the factory of origin
and responsibilities can be determined. On completion of the examination, incorrect and in-
complete deliveries can be invoiced under WG-stage 4.
The responsible warranty department of the market shall thereby determine which defect code
shall be applied.
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Important: Items of equipment that are at risk of being stolen are marked on the delivery note
with ***. This equipment must be checked by the carriers each time they assume responsibility
for a vehicle.
Should you nonetheless discover that parts subject to the risk of theft (e.g. floor mats, radio,
mobile phone, wind deflector, spare wheel, mobility system, warning hazard triangle, first-aid
kit, tools, etc.) are missing from the vehicle, this must be notified to the delivering carrier within
a legally defined period. It is not possible to submit these cases under warranty.
Note regarding MINI delivery process for new vehicles

The luggage compartment lid of the vehicles is sealed ex works with a label reading "Don't open
– nicht öffnen". The check of the luggage compartment content by carriers is eliminated by the
introduction of this seal. On accepting the vehicle, the carriers now only check that the seal is
unbroken. If the luggage compartment seal is broken when a MINI vehicle is delivered, any parts
missing from the luggage compartment must be reported immediately to the carrier (see chap-
ter 2.1, „Inspection of Damages“).
Parts missing from the luggage compartment of a vehicle with an unbroken seal can be pro-
cessed via the warranty department within WG-stage 4.
2.3 Storage and Care

Storage damage cannot be claimed under warranty. A separate insurance protection is required
for such damage.
2.3.1 Short-Term Storage (up to one month)
It goes without saying that, in the interest of value retention, the vehicles should be stored in a
manner that provides the maximum possible protection against damage.
Guidelines for storage
This is why BMW has developed special guidelines (see BMW Group Transportlogistics) that
contribute to avoiding damage to new vehicles during storage or while they are otherwise sta-
tionary.
These include:
− No storage in the proximity of industrial companies with heavy air pollution.
− Do not park underneath trees; under a roof, where possible.
− Always keep vehicles locked.
− Ensure there is adequate space at the sides.
− Protect vehicles parked outdoors against direct sunlight (especially upholstery and plas-
tic parts).
− Convertibles must be stored in enclosed halls or parking spaces with roofs.
− Check that the concentration of the long-term antifreeze and corrosion inhibitor fluids
is adequate.
− Comply with the care instructions issued by the battery manufacturer and with the bat-
tery charging schedule.
− Ensure that the prescribed tyre inflation pressure is observed (to prevent tyre pressure
loss).
− For manual transmissions: release the parking brake and engage a gear.
− For automatic transmission place in “park” without the handbrake.
Note: Please observe the current details in the aftersales systems (PuMA, ISTA-D etc.)!
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2.3.2 Long-Term Storage (over one month)
Monthly check
All new vehicles that have already been stored for one month must be checked for storage
damage and other deficiencies before the immobilization period continues. In general, this in-
spection should be repeated at least once a month.
It goes without saying that any damage that is discovered must be repaired immediately.
Furthermore, the care measures must be observed.
Additional measures
In addition to the points mentioned at "Short-term storage" and the care measures listed in the
repair instructions, the following measures are required to prevent storage damage:
− The passenger and luggage compartment are to be examined for moisture. If conden-
sation is discovered, ensure adequate ventilation and remedy the causes.
− To prevent tyre pressure loss, each vehicle must be moved every four weeks. In doing
so, ensure that the tyres do not come to rest on the same contact surface. Increase tyre
inflation pressure to 4 bar.
− Remove batteries, store in a suitable room and, if required, recharge (see also "Care
instructions of the battery manufacturer and complying with the battery charging sched-
ule").
− With models with a protective film, the film should be inspected and if necessary re-
placed.
If paintwork damage is unexpectedly discovered, this may only be invoiced under the following
defect codes (analogue AIR / KSD):
- 5191459800 for industrial contamination/environmental impacts, surface rust

- 5191469800 for water marks, swellings, etching
The use of these special defect codes is respectively limited to a period of 6 months from the
production date on. The condition is that the vehicle was stored at an authorized BMW dealer
or at an authorized BMW carrier according to BMW guidelines.
2.4 Handover to the Customer

Before a new vehicle is handed over to the customer by the authorized dealer himself or by the
service workshop, a free pre-delivery check will be carried out. Deficiencies discovered during
the pre-delivery inspection must be remedied prior to handing over / delivering the vehicle to
the customer. The individual items of work for the various types of vehicle are described in detail
in the relevant repair instructions.
In justified cases, which are the manufacturer’s responsibility, invoicing has to be done via War-
ranty type 1, WG-stage 4.
If deficiencies are overlooked despite all due care, it should be a matter of course to remedy
these in the form of so-called workshop rework. Smaller adjustments (e.g. adjust handbrake)
are to be performed by the dealer organisations under their own responsibility and the costs
are to be borne by them.
The first impression the customer gets of his or her new BMW or MINI is especially important.
A vehicle that is handed over in a technically and visually perfect condition, speaks certainly for
the dealer.
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Ensuring the proper status of the battery

The proper status of the battery at the time of handing over the car to the customer has to be
checked, documented and stored electronically.
The verification will come from either

− Using the application Battery Care or
− Performing the PDI (Pre Delivery Inspection).
The final battery check (documentation of the check result in the system) must be performed
within 10 days before handing over the car to the customer.
Important Service Note

The dealer should set aside time for the vehicle handover to the customer, to establish a good
and trusting dealer-customer relationship:
The following services are recommended:
− Explanation of the operation of the vehicle

− Explanation of the BMW maintenance system (CBS, Condition Based Service).
− Draw attention to the vehicle documents (Service Booklet, Owner's Handbook and Op-
erating Instructions) and the services provided by BMW
− Entries in the Service Booklet are important (see below)
− The customer's attention should be expressly drawn to the "12 year warranty against
rust perforation"
− If the customer desires, a short instructional test drive should naturally be offered
− Introduction to the service department
Electronic Service History / Service Booklet

The electronic Service History or Service Booklet are important documents to preserve the
rights under warranty and goodwill. It should be emphasised to customers that the complete
documentation in the electronic Service History or Service Booklet is particularly important for
the value retention of the vehicle.
− Electronic Service History (eSH)

The electronic Service History is integrated in the vehicle electronics and can be ac-
cessed via the board monitor or the radio system.
The pre-delivery check will automatically be stored in the electronic Service History
through the tester interface (available mid 2016 in all eSH-compatible vehicles from
HMI version 5 on).
Please note:
For vehicles without a Service Booklet or an activated eSH the date of the pre-delivery
check is saved and transferred to BMW AG via FASTA. The reset of the red light “per-
form pre-delivery check” can be used as documentation to the customer that the PDI-
check was performed.
− Service Booklet
For non eSH-compatible vehicle models the Service Booklet is available in paper form.
The pre-delivery check has to be documented by means of a stamp, signature and date
in the Service Booklet.
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3 Customer Complaints
3.1 Discussing the Complaint with the Customer

The dealer should take the opportunity to increase the customer's loyalty by providing profes-
sional solutions and hence presenting himself to the customer as a competent partner.
It is the job of the service advisor to find out the technical cause of the problem and the individual
requirements of the customer by posing appropriate questions.
Here are a couple of basic rules for the dealer:
− Put yourself in the customer's shoes. Take the matter seriously.

− Take into account the mentality and temperament of the customer. You should not al-
low yourself to get distracted from the matter in hand or lose your objectivity.
− Allow customers to say everything that they want to say. Then present your arguments
objectively, even if you already have a solution in mind.
− Make customers aware of your personal interest. This will help gain their trust.
− Do not belittle a complaint, even though you might personally think that it is trivial.
− Please never make comments to the customer such as: "We know about this, it hap-
pens a lot."
− In the case of justified complaints, immediately set out the next steps to be taken.
− In case the BMW Group covers the repair costs as a gesture of goodwill, communicate
it to the customer positively, see chapter 4.10.3, „Goodwill as a Marketing Instrument“.
− Bear in mind: A minor problem can become a major one if it is not dealt with quickly.
This is why you should never procrastinate in the event of a customer complaint; rather
you should deal with the case as quickly and as straightforwardly as possible. Your cus-
tomers will express their appreciation in the form of trust and loyalty to your company.
Note: The original voice of the customer, of how he himself formulated his complaint has to be
added to the repair order electronically and is mandatory.
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3.2 Check whether Warranty or Goodwill Applies

The recommended maintenance work, as well as proper care of the vehicle performed regularly
as specified by BMW / MINI (to ensure the adherence to road and operating safety standards),
is a precondition to preserve the rights under warranty and goodwill.
Important: The specifications in the owner’s manual must be observed (e. g. regarding to re-
fueling).
Please determine on acceptance of the vehicle whether the warranty claims made by the cus-
tomer are actually justified. Is the complaint really a product problem or are other influences the
cause for the defect such as stone chipping, customer fault or whether any retrofitting or tuning
has been carried out.
Before the warranty work is started, the Service Booklet has to be inspected (e. g. CBS key
data, new APAS functionality, AIR, electronical service history / Service Booklet). The booklet
provides information on whether the defined BMW / MINI service and maintenance work has
been carried out regularly and in line with the technical specifications of BMW / MINI.
If the maintenance work is done by a third party company, the customer has to demonstrate
(by means of invoice, maintenance plan) that the work has been performed in line with the man-
ufacturer’s guidelines and that the used liquids/oils meet the manufacturer’s guidelines.
3.3 Customer Mobility in Event of Warranty Repair

Particularly if a warranty repair results in an extended and possibly unplanned workshop visit,
we recommend to give the BMW / MINI customer the option to remain mobile despite the repair
work being carried out on his own vehicle.
Therefore, whenever possible the customer should be offered a courtesy car or an alternative
mobility option (for example courtesy car from dealer's own stocks or via car rental company,
pickup or shuttle service, taxi voucher, metro ticket etc.) in all warranty cases in which the repair
work exceeds 2 hours.
Note: The resulting mobility costs are to be borne locally by the market, and are not covered
via the central warranty.
Exception: BMW AG partially supports mobility costs for loaner vehicles or other mobility for
all new technical campaigns ≥ 12 FRUs decided as of June 1st 2016. The dealer must add the
corresponding comment in the warranty claim. For details, see chapter 4.3.3, “Sublet Codes”.
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4 Warranty and Goodwill Processing

The customer has the right of repair or replacement
The customer can choose to have the part repaired or ask for a fault free part exchange. The
seller can refuse the customer’s choice, if this is unreasonable for the seller.
4.1 Type and Scope of the WG-Repair

Within the framework of warranty, the market decides together with its associated dealers on
the type and scope of the repair. If necessary, advice may be obtained from the central technical
support department. The interest of the company in avoiding or minimising the costs must
always be kept in mind. The expectations of customers, the services of competitors, as well as
the requirements of the markets are to be taken into account in a suitable manner.
In case of warranty and goodwill repairs only Genuine BMW / MINI Parts including engine oil are
to be used and billed (Exception: locally approved parts).
Note: Repair recommendations from PuMA do not represent an authorisation to pay costs.
Therefore PuMA should be used only in the event of technically problematic cases, where the
dealer needs technical support from the technical department of the markets or BMW AG. In
general it is not necessary to create PuMA cases or reports for the justification or validation of
warranty costs. The only exceptions are TeileClearing (PartsClearing) cases.
4.2 Documentation of WG-Cases with Pictures

For reasons of traceability, it is recommended that for all visible complaints meaningful photos
are to be taken (e.g. stress cracks of the windshield, leaky damp headlights, damages on rims
or body parts, cable damage, corroded spare parts, etc.).
Those have to be attached to the repair order and stored in the system. With regard to manda-
tory photo documentation, the information in the aftersales systems has to be observed.
It must be clearly recognisable to which vehicle and which damage the photo series refer to.
Paint and corrosion damage

Four to five informative photos are mandatory. This means that the vehicle must be photo-
graphed when clean and dry (no water drops) and in a well lit ambience.
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The photographs must contain the following:

− Complete vehicle including the licence plate
− With new/used cars without license plate, the VIN is to be photographed
− The damaged area, which is clearly marked by means of photo editing or magnetic arrows
− Several detailed photographs from various distances and angles
4.3 Repair Order

The repair order forms the basis for all warranty and goodwill work to be carried out. It serves
as verification of a binding repair order as well as a work instruction for the mechanic and as a
means of recording working hours. Later if required, it can be used to help understand the cus-
tomer complaint and the work carried out. This is why it is also of decisive significance that you
note down the customer complaint in the original wording on the repair order. The repair order
forms the working basis for the workshop and has to be created prior to carrying out the repair
and signed by the customer (as evidence of the customer complaint).
Order extensions, i.e. work scopes that are not causatively associated with the original cus-
tomer complaint, must be clearly identifiable as such in the repair order (overleaf on order or
depending on volume on an order extension form) and may only be accepted in justified indi-
vidual cases (safety related topics, or topics which can result in expensive subsequent damage).
If work becomes necessary due to technical information from BMW Group or findings of spe-
cialists at the dealer organisation and the customer has not ordered this work, the details are to
be documented and signed by the workshop foreman or service advisor on the order.
The description of individual operational steps e.g. troubleshooting, diagnostic work (open
times) as well as all work performed for which flat rate units exist in the AIR / KSD are to be
entered chronologically on the repair order or in an order extension form to be archived for the
stipulated retention period.
When filling out the repair order, please ensure that amongst others the following details
are entered:
− Damage description with detailed explanations in a logical sequence. The customer
complaint must be written down in the original wording of the customer.
− The complete vehicle data (licence plate, VIN, date of first registration and similar in-
formation).
− In the case of parts warranty, instead of the date of first registration of the vehicle, the
date of installation of the part and the mileage as of the installation date has to be noted.
Please always state the total mileage of the vehicle and the date of first registration in
the comment box of the claim. Store the sale or installation invoice of the customer in
the vehicle file.
Common errors with parts replacement:
Thus the registration date of the vehicle instead of the installation date of the replaced
part is frequently entered as registration date in the claim. Furthermore, the current mile-
age is entered in the claim instead of the difference in the mileage between the instal-
lation date and the current mileage.
An example: A BMW with warranty start date 01.02.2009 and a mileage of 30,000 km
has a part replaced on 01.05.2011 for which the customer pays. On 30.04.2012 with a
total mileage of 45,000 km this part is once more defective.
It is replaced by means of the parts warranty and a warranty claim is made. Under this
claim, 01.05.2011 must be entered as the warranty start date and not 01.02.2009 and
the corresponding mileage of 15,000 km (45,000 – 30,000 = 15,000 km).
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− Total mileage: If the mileage is read out by using the KeyReader, the customer has to
be asked for the key that he uses.
Pay attention to any work that might have influenced the mileage – entries in the Service
Booklet, e.g. replacement of instrument panel, engine replacement.
If the repair takes longer and possibly a test drive is necessary, the mileage at vehicle
return to the customer has to be taken.
− Work scope and flat rate units: The number of flat rate units to be entered is calcu-
lated according to the specifications on the AIR / KSD or, in exceptional cases, open
times can be applied (see chapter 4.4 , "Time recording”).
− Materials used: It must be perfectly clear from the repair order which Original BMW /
MINI (exchange) parts or what other materials have been used.
4.3.1 Defect Codes
Exact quality monitoring promotes continuous quality improvement and also permits rapid de-
tection of any quality fluctuations. However, this is only possible with careful coding and prompt
submission of the claims. Precise details are important for correct processing of warranty
claims.
The defect codes are listed in a catalogue. This can be applied to the entire production range.
You can find this defect code catalogue on the AIR / KSD or in your company's computer sys-
tem. A defect code change service ensures continuous updates.
Note: Please ensure that you always have the current defect code catalogue in your computer
system.
Defect code structure

The defect code is 10-digit. Regularly, however, only the first 8 digits are used. The 9th and
10th digits are normally "0" or rather market specific vendor codes.
The first 4 digits of the defect code are usually identical to the first 4 digits of the part number
and are simultaneously related to the flat rate unit number.
Defect codes for cause of failure

The fault-causing part is always to be stated with the defect code, if this can be identified un-
ambiguously. If this is not possible, or if the customer complaint has been carried out on a num-
ber of different components, the perception of the customer is to be reported. The defect
codes for this are usually to be found in the main group "10".
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Defective part code / observed defect code

The defect code catalogue contains two types of catalogue defect codes:
1) Damaged part code (fault causing part): for unambiguous causes; one component can
be unambiguously identified as the source of the fault.
2) Observed defect code: complex complaints for cases without a clear mapping to a fault
causing part (e.g.sound, maintenance, adjustments, programming)
Main advantages:
− Complex complaints are passed on and not 'spread' across possible cause findings
− Information option for complete vehicle noises / vibration problems
− Reduction of defect codes
Incorrect defect codes – cause and effect

One of the most common mistakes in submission of claims is incorrectly specified defect
codes. If claims were refused because of this, the following points have to be checked:
− Has the current defect codes file been imported into the computer system?
− Is the defect code of the cause of the damage determined with the current regulations
of the available information systems (e.g. ISTA, AIR / KSD, PuMA)?
Among other things, the following depend on the latter:

− What proportion of the repair costs are reimbursed to the customer and/or to the dealer.
− It is only possible to query a goodwill decision with the correct defect code.
− Correct specification of the determined defect is of great significance to quality deter-
mination and monitoring at BMW Group.
Defect codes with 77:

If no defect code is available, you can enter "77" as the 5th and 6th digits in exceptional cases.
Of course in this case the cause of the fault must be described in detail in the commentary to
the WG-claim. Note that this necessitates manual examination of the claim at BMW and that
the claim will be rejected if a regular defect code is available on AIR / the KSD CD.
Note: Incorrect or imprecise defect codes can lead to claim rejection or also to later charges,
e.g. model-related defect codes.
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4.3.2 Flat Rate Units
Flat rate manual

The operating mechanic receives his specific work instruction in form of job texts in accordance
with the flat rate manual and associated type-code-related specified flat rate unit times from
AIR / KSD. As a general principle, specified flat rate units (FRU) are reimbursed independently
of the times clocked.
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The flat rate catalogue lists practically every conceivable workshop task that can be performed
on BMW and MINI vehicles. The claim creation can only be drawn up correctly by using the AIR
/ KSD; at the same time, this is used to check the validity of the flat rate units for a certain vehicle
on the basis of the vehicle identification number.
Note: Only FRU numbers which are available for the respective vehicle type in the current flat
rate manual on the current AIR / KSD can be used. The warranty system cannot take account
of other FRU numbers – for example from older catalogues or those that do not match the
model. The catalogue is clearly arranged according to main groups and its structure corre-
sponds to the Parts Catalogues, Repair Instructions and Service Information.
7-digit FRU numbers

They are composed of a 2-digit main group, a 2-digit subgroup and a 3-digit serial number.
Distinction between main / associated work; Example: removing and fitting cylinder head:
"Flat rate description"
"Flat rate description"

The texts listed in the flat rate manual (AIR / KSD CD) in the column "FR description" are not a
technically complete description of the procedures. Such descriptions can be found in the cor-
responding repair instructions and service information.
Necessary supplementary work such as visual inspection, greasing, oiling and cleaning parts
and assemblies are each included in the normal work scope and are not reimbursed separately.
In the case of catalogue items where the work scope only differs with regard to the number of
parts stated, the text in the column "FR descriptions" only appears once.
Main and associated work

− For main work, the serial numbers of the last 3 digits lie between
000 and 499
− For associated work, the serial numbers of the last 3 digits lie between
500 and 999
The broad definition of main and associated work is stored in the AIR / KSD. Basically:
a) Main work is a self-contained work process that starts with acceptance of the order by the
service advisor and ends with the return of the vehicle to final inspection or of the repair order
to the control centre.
Note: A workshop visit is the period between opening and completion of the main job and
the split jobs. Only one main work may be used per workshop visit on a vehicle. In the case
of split jobs or external jobs (e.g. customer invoicing, internal dealer order etc.) the main work
is always to be invoiced to the customer, the external invoicing recipient or as well as to the
dealer internal invoicing, even though the performance was provided, but not further calcu-
lated.
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Special case:
Only if no main work is available in the AIR / KSD for external or dealer internal work, the main
work can be charged via the WG-claim.
Exception paintwork:
For paintwork it is possible to claim secondary main work within main group 99, insofar that
this main work cannot be accounted to a second invoice recipient.
All other regulations for handling main and associated work apply as described above.
b) Associated work
In the flat rate manual (AIR / KSD), each associated work job appears only once in the tech-
nically and functionally matching group. The FRU numbers marked with a "+" are associated
work. They can be used if the job is carried out in association with the main work.
Associated work enables extension of the repair order, i.e. that there are operations preced-
ing the main work.
Example:
− 23 00 022 removing and fitting gearbox (main work)
− 21 21 500 Remove and install or replace clutch (associated work, as the gearbox has
already been removed)
If several defects are present, only associated work may be used for the remaining defects.
Note: Associated work that is already contained in main work is automatically reduced or
rejected by the system. Unjustified reimbursements of this kind can lead to later debits.
c) Open time (without fixed flat rate unit specifications)

It can be differentiated between catalogued and non catalogued open time:
Catalogued FRU numbers

The flat rate catalogue contains FRU numbers with no fixed flat rate specifications. Mostly
these involve troubleshooting work.
Examples: 24 00 001 Checking function of automatic gearbox

13 00 002 Function check of digital engine electronics
64 10 010 Checking function of heater control
41 00 009 Eliminating body noise
Non-catalogued FRU numbers

Only if the current flat rate manual AIR / KSD contains no applicable flat rate units for the
work performed may non-catalogued flat rate units (=open times) be used. If no flat rate units
are specified in the catalogue for the work required, the actual and reasonable open times
apply. These must be documented with clock times and with a description on the order or
with an order extension report and be converted into flat rate units.
The 7-digit FRU number for open time without fixed specifications is structured as follows:
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Example:
There was identified body noise on a vehicle. The cause is a loose welding spot that has to
be reworked. The following work was carried out:
− Removing and fitting = this work is defined in the flat rate manual
 do not use open times.
− Rewelding = this work is not defined in the flat rate manual
 bill with the following open time number: 41 99 000.
Such uncatalogued jobs invoiced with " _ _ 99000" are to be explained in the comment
field of the warranty claim (specify which jobs were carried out in this time).
Settlement of open time (WT/OT)

Written records of all non-catalogued flat rate units and troubleshooting without specified
flat rate unit amounts must be entered on the repair order. All measured values outside the
diagnosis report are to be recorded on the repair order.
This work must either be verified by separate clocking or at least included and allocated in
the total clocked working time. BMW AG reserves the right to retrospectively debit any un-
justified work.
If open times are used, the work must be noted in writing immediately after completion of
the repair by the mechanic or the responsible workshop supervisor. The individual repair
steps shall be described in detail and signed by a responsible person.
Also in this case comments on the jobs always have to be entered in the comment box of
the warranty claim.
Note: In the case of several jobs, where a FRU number exists, it is not permitted to submit
them combined using an open time number. These costs won’t be reimbursed.
Non-catalogued flat rate units must not exceed an acceptable level
There is of course no question that non-catalogued flat rate unit numbers are required for
certain jobs. However, the warranty department notices that open times are frequently used
for the sake of convenience to avoid having to search for flat rate unit numbers from the flat
rate manual of the AIR / KSD.
If open time values are used although fixed flat-rate units are available, these open time FRU
will not be paid.
d) Self-defined flat rate unit numbers in your computer system

If certain self-defined flat rate unit numbers exist in your computer system (FRU numbers
that are not on the AIR / KSD of BMW AG), these numbers cannot be used for processing
warranty and goodwill claims. The BMW computer system does not recognise such self-
defined job numbers and rejects them automatically.
4.3.3 Sublet Codes
The following sublet codes can be differentiated:
01 = Replacement vehicle (own vehicle or third-party vehicle)
02 = Other mobility substitutes (e.g. taxi, subway ticket)
03 = Repair done outside of claimant’s workshop (third party invoices without VAT) fall-
ing under warranty (except towing). This includes e.g. paint and upholstery work (reim-
bursement see chapter 4.7, “Third Party Services”)
04 = Miscellaneous, e.g. lubricants, operating fluids, consumables etc.

(reimbursement see chapter 6.2.3)
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05 = Towing costs for towing carried out by dealer
06 = Towing costs carried out by an external company (with external invoice without
VAT).
Note regarding the claiming of sublet codes:

Sublet codes can only be claimed if the scope of service is commented comprehensibly and
clearly in the warranty and goodwill claim (in case of paintwork e.g. the paint level, paint material,
main and associated work according to AIR / KSD etc., reimbursement see chapter 6.2.4)
Sublet codes 01 and 02

These sublet codes for substitute mobility and vehicle take-backs (buybacks, trade-assists) are
not eligible for central cost reimbursement.
Exception: Mobility for all new technical campaigns ≥ 12 FRUs (valid for Technical
Campaigns decided as of June 1st 2016).
BMW AG partially supports mobility costs for loaner vehicles or other mobility for all new tech-
nical campaigns ≥ 12 FRUs decided as of June 1st 2016. The ability to claim for mobility costs
will be explicitly communicated on the individual technical campaign and is only valid per Special
Defect Code and Workshop visit.
The mobility costs have to be claimed directly by the dealer in their local warranty system only
once per Special Defect Code and Workshop visit via the corresponding sublet code 01 (re-
placement vehicle) or 02 (other mobility) using the special defect code of the technical cam-
paign. An accumulation of several technical campaigns < 12 FRUs to achieve a sum of >= 12
FRUs is not allowed.
A dealer comment in the warranty claim is mandatory outlining the details of the mobility offer
given to the customer. Furthermore, please ensure a copy of the rental agreement or other
audit relevant documents are added to the customer file.
Sublet code 03
Third party invoices must be filed orderly in the vehicle file and must be uniquely assigned to
the corresponding vehicle. The warranty department of BMW AG reserves the right to demand
presentation of external invoices.
Transfer costs (only in case of paint and upholstery jobs; sublet code 04)
In case it is necessary for the dealer to transfer a vehicle, these costs can be claimed via the
WG-claim. Therefore, a flat fee in the amount of 30€ per repair order can be charged, as well
as additionally the mileage costs (the same as the towing costs). The mileage costs (0.30 € per
km, 0.48 € per mile) are billed with sublet code "04" and the calculated € amount (driven
km/miles from dealer workshop to third party workshop, round trip x 0.30 € per km or 0.48€ per
mile). Within the WG-claim the sum of the flat fee and km-costs are to be entered, as well as
the description of the costs in the comment field.
Sublet code 04
In the comment field, it has to be noted which materials are used and in which amounts.
Sublet code 05
Vehicle is towed in by a productive employee of the repairing dealer. Settlement of the sepa-
rately stamped job times (round trip) of the productive employee (not a service advisor) using
the FRU number 0012300 (= towing vehicle). If a non-productive employee performs this task,
only 50% of the open times can be settled.
The costs (0.30 € per km, 0.48 € per mile) for the towing vehicle are billed using sublet code
"05" and the calculated € amount (driven km/miles from base location of mobile service to
breakdown location, round trip x 0.30 € per km or 0.48 € per mile).
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Sublet code 06
The costs of the external invoice (pure net, i.e. without VAT and with discount deducted) are
billed using the sublet code "06". The external invoice has to be kept in the vehicle file.
Note regarding sublet codes 05 and 06:

Towing costs can only be reimbursed if the breakdown location and the driven kilometres/miles
to breakdown location (round trip) are noted in the comment field. Furthermore the required
claiming procedures for breakdown repairs can be found in chapter 5.6.
The billing solution must be the most cost effective for BMW AG from a business point of view.
The market has to coordinate these national solutions and billing with BMW AG if the invoices
are to be passed on. The point of contact here is the “AG Central Warranty Department”.
Towing to the nearest BMW dealer is paid in the event of damage, only during the warranty
period for vehicles (Warranty type 1).
4.4 Time Recording

The time recording provides evidence about the required time for the calculated job perfor-
mance. The times can be recorded manually using time clock or electronically. In individual
cases, handwritten entries (using permanent ink) signed by the supervisor will be accepted.
The time recording system must be tamper-proof and provide transparent reporting. The sys-
tems approved by BMW meet these requirements.
4.4.1 Calculation according to Flat Rate Units
At the start of processing a repair order, the mechanics (including directly involved foremen and
trainees) select the corresponding time type (external work, warranty work, etc.) and the order
number on the time recording device. The working times (W-times) are recorded in the same
manner by entering the respective time type. The time for the current repair order is ended by
clocking on a new order, a W-time or the quit stamp.
Please note with manual time recording:

Foremen and supervisors whose direct productive contribution is less than 50% note their
working times on the repair order and sign the items that have been completed.
Apprentices clock their times spent assisting or carrying out work on their own on the work-
shop order and on their own daily/weekly working hour’s sheet. No recording of W-time is re-
quired for them. If the apprentice works along with a mechanic, then his work is to be invoiced
for determining the performance level of the mechanic as follows:
Apprentice in 1st year = 0.00 mechanic unit
Apprentice in 2nd year = 0.20 mechanic unit
Apprentice in 3rd/4th year = 0.40 mechanic unit
Open time work performed by apprentices has to be estimated with the same factors.
Note: Warranty work performed by apprentices cannot be claimed by performance level.
4.4.2 More information on Time Recording
− Open time that is claimed for must be verified in relation to each mechanic either by
means of separate punching or at least included in the total punched working time. It
must be ensured in all cases that the submitted open times of this nature do not exceed
an acceptable level.
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− If one mechanic works on a number of open time items, the total working time required
can be punched in and out once.
− Jobs that are invoiced via open times are to be documented with punching times and
the corresponding description of the repair steps on the order or with the aid of an order
extension report.
− If a job item with specified flat-rate units is worked on within an open time task, this job
item is to be listed later separately on the repair order. The specified flat-rate unit is then
to be deducted from the recorded open time.
4.5 Diagnosis
The programs and documents in the BMW diagnosis systems contain information on trouble-
shooting in BMW Group vehicles.
The requirements of diagnosis are described in the workshop system ISTA under “News: Con-
tents and notes, diagnosis”.
An initial diagnosis or a brief test is always required before programming a vehicle (Exception:
before programming of technical campaigns). Furthermore, it should be ensured that all re-
quired test modules have been completed during the diagnosis.
If the repair cannot be carried out directly after the diagnosis (e.g., due to delays in obtaining
spare parts), a second vehicle test at the time of repair is necessary, i.e. if the repair is not com-
pleted within 10 days or 1.000 km. This ensures that the original diagnosis reports can be linked
to the current diagnosis.
The proper repair of a vehicles is only guaranteed if the information above is observed and the
repairs are carried out according to the instructions given.
The inadequate execution of a diagnosis can lead to the rejection of a warranty or goodwill
claim.
The appropriate diagnosis reports can be filed in paper form or electronically. It must always be
possible to view the reports within the 5-year archive period (see chapter 5.8, “Documentation
of Warranty and Goodwill Claims”).
Note: The obligation to keep records is the responsibility of the repairing dealer. The BMW AG
central systems assume no responsibility for this.
4.6 Damages because of Paint and Rust
4.6.1 Paint Warranty
This does not apply for paintwork damage caused by unreasonable treatment of the car or
exceptional environmental influences.
The dealer assesses and diagnoses the complaint based on the BMW / MINI paint brochure,
and if appropriate, contacts the national warranty department for approval. If necessary the field
service team responsible for the dealer should be notified to examine the complaint on location.
Before painting it has to be checked whether a spot-repair is possible., see also „Process Spec-
ification 00032, Repair Painting in the Transportation Chain and in the BMW Dealership Net-
work“ (which can be found in ASAP).
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The following paint levels are to be observed for the settlement:

− Paint level 1: without complete composite paint structure (surface finish,
including grinding, base coat and spray of clear coat)
− Paint level 2: complete composite paintwork (new part bolted)
− Paint level 3: complete composite paintwork (repaired parts and new welded,
primed, tin-coated parts)
Note: External paintwork requires sublet code „03“; reimbursement see chapter 6.2.4, “Third
Party Services”.
4.6.2 Rust Perforation Warranty
The rust perforation warranty applies for the complete bodywork of the new vehicle ex works.
Add-on parts such as trim strips and roof rails are excluded.
Conditions for a corresponding warranty claim are as follows:

a) The prescribed inspection instructions and service intervals have been properly performed
and confirmed by the authorised BMW / MINI workshop, as well as any paint touch ups.
b) The buyer must repair damage to the body and underbody immediately after discovery of
this damage by an authorised BMW / MINI workshop.
c) The rust perforation was not caused by external influence on the body or underbody protec-
tion (e.g. accident, stone chipping, environmental influences) or the damage was not caused
by neglect or external influences.
d) Any body repairs performed by an authorised BMW / MINI workshop have been carried out
according to BMW / MINI repair guidelines and any replaced parts have been protected
against corrosion in accordance with the manufacturer’s specifications.
e) When warranty and/or goodwill work is performed, the repairer may only use the BMW / MINI
Colour System repair paints and materials, in order to ensure the high quality standard, value
retention and corrosion protection of the BMW / MINI vehicles as well as to maintain the 12-
year rust perforation warranty.
f) The dealer is also obliged to inform any subcontractors (4th level) who are engaged to per-
form warranty and goodwill work about the above principles and to ensure that these are
observed and adhered to.
In the case of corrosion where one or more of the above conditions have not been met, the
corrosion warranty coverage is void.
Note: Please follow the current instructions provided in the aftersales systems (e.g., PuMA,
ISTA-D, ASAP etc.) and particulary the current boundary samples for paint and corrosion dam-
age.
4.6.3 Authorisation Procedure for Paint and Corrosion Damage
Informative digital photos should always be taken, see also chapter 4.2, “Documentation of WG-
Cases with Pictures”.
Complaints about the paintwork as well as a copy of the maintenance documentation from the
Service Booklet or via the history in the Dealer IT System are to be stored in the vehicle file.
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Important:
It has to be ensured, that the component, for which the complaint is about, is still in its original
condition. In case of doubt, a coat thickness measurement has to be carried out.
Please always check whether the maintenance and care measures have been carried out com-
pletely and properly as specified by the manufacturer, whether the general vehicle condition
corresponds to the vehicle age and mileage, and whether the cause of the damage can be
unambiguously assigned to the responsibility of the manufacturer.
Note: If the total costs for the repair (not per defect code) exceed an equivalent financial value
of 300 FRUs (Total costs incl. paint material and parts without set-up times) as well as in good-
will cases, authorisation is always required by the warranty department.
4.7 Third Party Services

Warranty, goodwill and maintenance work as well as brand-specific extended warranty and
service work (e.g. BMW Premium Selection, MINI Repair Inclusive) are generally excluded
from being outsourced to a third party. Exceptions are finally settled by the BMW / MINI ser-
vice contract (e.g. Outsourcing of body, paint or upholstery work or to authorized specialist
workshops). The outsourcing of services to third parties must always be communicated to the
customer transparently and proactively.
Invoicing
The dealer organisation is the contracting party of the customer. A direct contractual relation-
ship between the customer and a third party is not intended. Third party services must be billed
via a stepwise relationship (third party – dealer organisation, dealer organisation – customer). A
total invoice with separately stated third party services (without extra additions) must be given
to the customer.
Reimbursement
In case of warranty and goodwill, third party services are submitted net, on the basis of the
actually performed services of third parties that have been invoiced to the dealer organisation
(considering any discounts).
For paint and upholstery work, the hourly rate of the service provider (third party) is the deter-
mining factor. The paint levels and material, main and associated work etc. should be clearly
indicated and must not exceed the specifications set by BMW for work and materials (AIR /
KSD).
Furthermore, the industrial standard appraisal systems have to be used as the basis for the
repair price calculation.
4.8 BMW i
As part of the global launch of BMW i, there are also some points to be considered concerning
the processing of warranty and goodwill claims. Only authorised BMW i service partners are
entitled to submit warranty and goodwill claims for BMW i vehicles.
4.8.1 Service Formats
The dealers are differentiated by the following service formats based on the technical qualifica-
tion of the dealer. Each BMW i dealer is only entitled to submit claims for processing under
warranty and goodwill for their specific service format:
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- BMW i Basic Service: all repairs except high-voltage (HV) and carbon relevant repairs
- BMW i Extended Battery Service: all repairs except carbon relevant repairs
- BMW i Full Service: all repairs including carbon
The respective service format is linked to the dealer number and is administered by the respec-
tive market.
Note: If the necessary service format is not allocated to the dealer number at the time of the
repair date, then the warranty and goodwill claim will be rejected.
4.8.2 Costs of Routing
If the dealer does not have the necessary qualification (service format) to repair the vehicle, the
vehicle has to be routed to the nearest BMW i dealer, who possesses the necessary qualifica-
tions. The routing of the vehicle is only possible to a BMW i dealer with a higher service
format:
Important: The routing / transfer costs are not covered by the central warranty and therefore
are the responsibility of the markets.
In case of routing we must differentiate between the diagnostic work performed by the non-
qualified BMW i dealer and the diagnostic work and repair of the qualified BMW i dealer.
The settlement of the warranty and goodwill case is as follows (one claim per BMW i dealer):
a) Non-qualified BMW i dealer:
The diagnostic work of the non-qualified dealer performed before the routing can be claimed
via BMW AG within the warranty period. The dealer may only claim the cost of the diagnostic
work before the routing using the following defect codes:
- High-voltage diagnostic work before routing 99 99 01 20 00
- CFK (carbon) damage analysis before routing 99 99 01 21 00
b) Qualified BMW i dealer:
The dealer must perform an additional diagnosis before carrying out the repair of the vehicle.
The diagnosis costs, as well as the costs of the actual repair have to be claimed using the
normal defect codes from AIR / KSD (standard process).
Important: In adherence with the correct warranty process, the following documents must be
sent with the vehicle to the qualified BMW i service workshop:
− A copy of the non-qualified BMW i dealer‘s workshop order
− All necessary information of any repairs carried out related to this case
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The documents shall be kept in the vehicle file by the qualified BMW i service workshop. Due
to legal restrictions, customer data (name, address, email, telephone, signature) must not to be
forwarded to the qualified BMW i service workshop and should be blacked out on the copy of
the workshop order. Furthermore, the customer shall be informed that his vehicle will be routed
to another dealer.
4.9 Original BMW / MINI Parts and Exchange Parts

In case of warranty and goodwill, Original BMW/MINI exchange parts have to be installed. Only
the countervalue of the exchange part will be reimbursed, not the value of the equivalent new
part, see chapter 6.2.2, “Parts and Additional Parts Costs”. Moreover, all fluids and lubricants
and miscellaneous repair materials which are needed for the repair, have to be purchased
from BMW.
Original BMW / MINI exchange parts are high-quality parts. They meet BMW AG’s high quality
standards in all aspects. Original BMW / MINI exchange parts are granted the same warranty
coverage as new parts, see chapter 1.8, “Warranty Periods”.
Thus, there are no disadvantages for the customer, only an active contribution to the environ-
ment through recycling.
Entering the parts requirement

The workshop order together with the parts slip forms the basis for the parts required in a war-
ranty case. The required parts as well as the excess parts not used in the repair must be booked
into stock precisely in the dealer parts system. The parts slip and/or computer system serves
as verification for the parts required.
Warranty for BMW / MINI parts and exchange parts

In all cases, verification of installation or purchase is required. The customer is required to pro-
vide the dealer with the original invoices for the Original BMW / MINI parts or Original BMW/MINI
exchange parts. The dealer must file a copy of these invoices in the vehicle file.
Important: If third party workshops purchase parts for specific vehicles, the VIN number must
be indicated on the invoice.
Note: Towing costs are not reimbursed in case of parts warranty.
Non vehicle specific accessories

The dealer has to use the VIN of the vehicle for which the part was purchased. In case the
vehicle is not a BMW Group vehicle, the dealer must use a VIN from his current vehicle pool
(with a warranty start date before invoice date of the part). Please note, that a comment is man-
datory in the claim.
Transit customers and parts warranty

If a transit customer (that is a customer who did not buy the vehicle from your dealership)
buys an Original BMW / MINI part or exchange part and this part is the source of a complaint,
then the parts warranty comes into effect. This means that the customer is no longer a transit
customer but a regular customer to the dealer in respect to the direct sale of the part for
which the repairing dealer is then the warranty bearer.
4.9.1 Quality Defects Determined Before Installation of Parts
If faults in the material or in the work are identified in a part that is to be installed by the dealer
in a vehicle before installation (i.e., the part has already been transferred to stores and
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booked), the fault is processed through the parts department channel (see chapter 2.1,
“Inspection of Damages”).
4.9.2 Quality Defects Determined After Installation of Parts
If during a test drive or afterwards a defect in a newly installed Original BMW/MINI part or ex-
change part is identified, the case is processed via a usual warranty claim. It is the responsibility
of the BMW/MINI dealer to ensure if the claim for a defective part is justified. If diagnosis relevant
parts are involved, the test- and documentation requirements are to be respected.
The following different types of installation exist:

− Installation by the authorised dealer/service organisation:
The installation date serves as the warranty start date (see chapter 1.7.2, „Parts Warranty
(Warranty Type 2 and 3)“. Required labour time according to AIR / KSD for parts removal
and installation will be reimbursed.
− Installation by the end customer:
The end customer has to provide the original customer invoice to prove the valid warranty
start date. If the customer claims parts warranty for an already removed part – only the
material costs are reimbursed. If the part is still installed, parts and labour are reimbursed
if the repair is carried out by a BMW/MINI Dealer.
− Installation by an independent repair shop (4th Level):
BMW / MINI dealers must provide a parts warranty to the end customer even if they sell
the parts to independent repair shops. The original parts invoice has to be provided to the
claiming BMW/MINI dealer to determine the warranty start date.
Procedure for diagnosis relevant parts
In general, the well known test and documentation requirements are to be respected.
A diagnosis has to be performed via a BMW/MINI-approved diagnosis system. If this is
not possible for the independent repair shop, the diagnosis has to be performed by an
authorised BMW/MINI dealer. Naturally the part still has to be installed in the vehicle.
Procedure for non-diagnosis relevant parts
The independent repair shop must provide the defective part to the BMW/MINI dealer in
order to validate the defective status.
Reimbursement of parts removal and installation costs
Depending on local legislation, an independent repair shop may ask for reimbursement
of their labour costs for the removal and installation of a defective part sold by the
BMW/MINI dealer.
For the labour expenses to be reimbursed, the repair time is provided by the most recent
version of AIR / KSD, whereas the rate is calculated based on the initial customer invoice
for the repair. It is claimed via the sublet code „03“ to BMW Group. Furthermore the in-
voice to the end customer must be provided to the claiming BMW/MINI dealer to deter-
mine the independent repair shop’s labour rate.
4.9.3 Wallbox
Over and above the normal parts warranty process the following Wallbox process has to be
adhered to.
The local repair and billing process between the contractor, electrician and dealer must be de-
termined by each market individually and documented in the national service provider contract.
The contractually agreed conditions have to be reported to the "central warranty department".
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A diagnosis must be performed either by remote diagnosis via Roadside Assistance / Mobile
Service or by the electrician on-site and has to be documented in the "eInstallation Tool". For
this purpose, it is necessary that the Wallbox is still installed at the customer’s premises.
The costs to replace the Wallbox have to be claimed always under warranty type 2 (Parts War-
ranty see chapter 1.7.2). The parts warranty starts with the part invoice date. To claim the costs
via the warranty claim, please note the following:
1. Lump sum (according to national service agreement with the contractor) for inspection,
shipping of the old Wallbox to the dealer, mileage of the electrician and installation of
the new Wallbox via sublet 03.
2. Third party bill for the shipping of the new Wallbox to the electrician can be settled also
via sublet 03.
3. The Wallbox itself can be claimed via the respective part number.
4. A copy of the original customer’s invoice has to be stored in the vehicle file.
Note: If the customer has originally installed the Wallbox himself (Cash & Carry), then only the
part costs of the Wallbox can be claimed via warranty and none of the above third party services.
4.10 Storage of Defective Parts

The dealer organisations are obliged to store the defective parts according to the local valid
retention period (e.g. defective parts return process).
Indeed, there is no general international obligation to return warranty and goodwill parts, but in
exceptional cases, mandatory return for specific parts can be dictated by the company head-
quarter for international markets. Information on this is sent in a separate letter.
For quality analysis, in particular in the case of new fault patterns, the fault elimination process
requires individual warranty parts on a case-by-case and specific basis.
In the case of a requirement to ensure the warranty part is kept physically available, a retention
period of 90 days after the credit note is issued or until the service representative calls and
examines the parts on site has to be determined (with the exception of standard parts, such as
screws, gaskets, lining discs, as well as wear and parts).
Furthermore, the regulations of the product information “Parts: Guidelines for Original BMW
and MINI exchange parts (return parts chain)” have to be considered (they can be found in
ASAP).
Identification Label
Defective parts replaced under the warranty are to be clearly labelled and carefully stored. An
additional labelling with “accident” or “breakdown” has to be made for the following parts:
− Parts where the fault or failure led to an accident or where it is claimed that they led to
an accident. In such cases, a PuMA SC Case has to be submitted immediately.
− Parts which have caused a breakdown
Disposal
After checking and concluding warranty and goodwill cases (observe fault elimination process),
the market is responsible for the proper environmental disposal of the defective parts according
to current valid recycling guidelines.
4.11 Goodwill
Goodwill is always voluntary. The customer has no legal entitlement to goodwill. Goodwill there-
fore always means making a "concession" to the customer and should be communicated pos-
itively by the dealer organisation.
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4.11.1 Principles
BMW Group reserves the right to eliminate failures in individual cases without recognition of a
legal claim for the rectification of faults that did not occur until the expiry of the periods laid down
in the respectively applicable fault liability arrangements or in other cases. Additionally it is rec-
ommended to make a contribution to the customer’s goodwill request. Thereby the costs for
labour and / or materials can be accepted in total or partly.
Goodwill requests are only allowed if all three conditions are met:
1) The vehicle is physically in the workshop.
2) The vehicle has been regularly serviced according to the manufacturer’s requirements
and the oil service has been performed within the calculated CBS interval (mileage or
time) and maximum 10% tolerance. The vehicle data can be checked via CBS key data,
AIR, electronic service history / service booklet etc.
3) The vehicle is currently registered to a customer or leasing company and the customer
registers a complaint of the defect with the dealer or the dealer notices a vehicle defect
during a workshop visit initiated by the customer or by BMW AG (e.g. recall). Order ex-
tensions are only allowed in adherence to chapter 4.3.
Exception to 3): For used cars / leasing returns (not currently registered to a customer or leasing
company) with a technical defect, which is clearly verifiable and requires a proactive repair to
ensure customer satisfaction, e.g. defects, which were not able to be identified during the ve-
hicle return. In this case a manual authorisation or dealer self authorisation is mandatory with an
appropriate dealer comment and technical verification (e.g. return protocol, photos).
Goodwill requests over and beyond the above mentioned conditions can be submitted for re-
view under exceptional circumstances with a mandatory case specific justification.
Goodwill requests are only valid, if

− the vehicle is currently registered to a customer
− and the customer registers a complaint of the defect with the dealer
− and the vehicle has been regularly serviced according to the manufacturer’s require-
ments, whereby the calculated CBS oil service value (mileage or time) has been adhered
to or exceeded up to a maximum of 10% of the calculated value
− and the vehicle is physically in the workshop
− and a repair order exists with the repairing dealership.
Where possible avoid any advance payment by the customer

The costs accepted in the context of goodwill are not to be billed to the customer. The cus-
tomer shall be immediately reimbursed for goodwill repairs for which he has made advance
payments as soon as the respective amount is credited.
The image of our brands infers a foregoing of any advance payments. This applies both to own
as well as (international) transit customers.
There are proven methods for minimizing the risk when foregoing advance payment:
− The market’s own goodwill budget
− Preliminary clarification via goodwill authorisation (see chapter 4.10.2.)
The market’s own goodwill budget

BMW Group makes an effort to meet all justified customers’ wishes where possible. Nonethe-
less, occasionally for a wide variety of reasons, the amount awarded in response to individual
goodwill claims varies from that anticipated by the customer.
For additional market-specific requirements and services, the market has to maintain a local
goodwill budget (according to the terms of contract).
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The advantages:
− The market can offer a goodwill solution that is satisfactory to the customer immediately
at its own discretion and without prior consulting of AG.
− The customer does not have to make an advance payment.
− If BMW AG covers a part of the repair under goodwill, the market should possibly cover
the difference from its own budget and hence improve its image and position with re-
spect to the customer.
Decision Requirements for a Goodwill Request

The BMW / MINI warranty department decides on every goodwill request on a case by case
basis. The individual decisions on a case by case basis cannot be generalised and accordingly
there is no general entitlement for supposedly similar cases. To process a goodwill request, a
documentation as follows has to be made in the dealer comment field:
a) Description of the damage including diagnosis code (where possible) and breakdown of
the general repair scope.
b) Justification of the goodwill request (e.g. repeat repair, vehicle history, loyalty, corporate
customer / VIP / opinion leaders, new car purchase pending etc.)
c) Amount of dealer participation
4.11.2 Types of Goodwill Authorisations
The authorisation issued to the dealer outlines to what extent BMW Group will contribute to the
costs for the respective vehicle and respective fault. Hereby you can distinguish between (de-
pending on the local dealer system) automatic and manual authorisation.
Automatic authorisation (decision by the system)
When making the automatic goodwill request, the vehicle-specific data and the defect code
have to be entered in the local system (e.g. S-Gate, Dealer Workplace).
If this - automated - request does not generate a contribution from BMW Group or a contribu-
tion that is inadequate for the specific case, and there are important reasons for an extended
goodwill contribution, a manual request can be created.
Manual authorisation (decision by a person, e.g. warranty assessor)

In the manual goodwill request it is essential that the exact labour costs are entered in the field
"labour (without open time)", as well as the part costs in the field “parts (retail without VAT)”, in
each case on basis of the customer retail price.
The amount of the planned dealer contribution has to be entered via the automatic / manual
request system in the field "Direct dealer contribution". The dealer contribution mustn’t be
billed to the customer.
Please note: The maximum delay between authorisation and repair date is 30 calendar days.
The customer may drive a maximum of another 2.000 km after the goodwill request is made
by the dealer. If one of these limits is exceeded, a new goodwill authorisation is required,
which, due to the changed parameters, may lead to a different decision.
An authorisation number is issued for each goodwill request processed via the local system.
For the actual cost acceptance a goodwill claim always has to be submitted, in which the initially
granted authorisation (via the field "Authorisation number") is referenced.
Important: The authorisation is a means of communication between the markets and their
authorised dealers. It may not be used and carried out in the presence of the customer, and no
printout may be passed on to third parties. The result of the authorisation has to be stored in
the vehicle file. In its area of responsibility, the market is responsible for the development and
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compliance with the correct handling procedures of authorisations that are tamper-proof with
respect to audits.
4.11.3 Goodwill as a Marketing Instrument
It may be appropriate to extend goodwill from the point of view of customer loyalty or if for
example a part fails due to a fault that is the responsibility of the manufacturer after the warranty
period has lapsed. As a general principle, a goodwill measure should always deepen and rein-
force loyalty of the customer to the BMW / MINI brands and the dealer organisation.
However, it should not be used for the handling of minor damages. Due to the administrative
outlay that is generated, goodwill claims with a total value of under € 50,- are to be avoided.
Deciding on a case by case basis

The respective national warranty department decides on a case-by-case basis about individual
goodwill queries. It is therefore especially important that the damage and the circumstances
that justify a goodwill decision are recorded in the authorisation.
A goodwill contribution of the dealer, e.g. a percentage of the costs, can also support a positive
decision by the national warranty department.
Pass on the decision to customers right away

If a goodwill solution cannot be offered immediately to the customer, he should be informed as
soon as the decision on the goodwill request is available.
Normally manual goodwill requests will be processed within a few hours so that the customer
can be informed within the same day.
How to sell the customer a goodwill decision?

Positive decision:
In goodwill cases with cost compensation please add a corresponding text to the invoice, see
examples:
Total cost coverage:
Dear Mrs. / Mr. Xy,
We are very pleased to inform you that we have fully covered the repair costs of your
vehicle as a gesture of goodwill to the amount of EUR XXX.
[Optional where applicable: We have also taken the liberty to wash and clean your vehicle
free of charge and were happy to provide you with a loaner vehicle at our cost.]
We wish you continued driving pleasure with your BMW / MINI.
Best Regards ,
Xyz
Partial Cost Coverage:

Dear Mrs. / Mr. Xy,
We are very pleased to inform you that we have partially covered the repair costs of your
vehicle as a gesture of goodwill. The amount of EUR XXX was accounted for in your in-
voice.
[Optional where applicable: We have also taken the liberty to wash and clean your vehicle
free of charge and were happy to provide you with a loaner vehicle at our cost.]
We wish you continued driving pleasure with your BMW / MINI.
Best Regards ,
Xyz
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Negative decision:
It is obvious that not all goodwill requests can be fully met. The customer should be informed
of a refusal as sensitively as possible, either in a face-to-face conversation or via a friendly, per-
sonal letter. This applies even in the case of a(n) (international) transit customer.
In case of a negative goodwill decision the negative decision mustn’t be mentioned explicitly on
the customer’s invoice.
Always:
The "goodwill customer" has to be given the feeling that they are partners and not that they are
begging for goodwill.
Customer correspondence
The customer must not be encouraged to contact BMW AG directly. Goodwill decisions
agreed with BMW Group, whether positive or negative, must be explained and justified to the
customer in the name of the dealer.
4.11.4 Extended Warranty Coverage
All customers must be treated equally regardless of whether they have extended warranty cov-
erage on their vehicle or not. Therefore the goodwill decision process should be the same for
all customers with and without extended warranty coverage (e.g. new car extended or used car
warranty, BMW Repair Inclusive). Any costs above and beyond the possible goodwill contribu-
tion from BMW Group can be submitted under the respective extended warranty coverage to
determine what additional costs will be covered.
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5 Warranty and Goodwill Claim

Entitlements of warranty and goodwill cases can be submitted to BMW Group via warranty and
goodwill claims. The claims are created in the billing system applicable in the country and sent
electronically. After examination of the claim by BMW Group, a credit is booked, the claim is
rejected, or after a follow-up analysis, a debit is booked to the account of the market or in the
case of large markets to the account of the associated dealer.
Important: The data specified in a warranty and goodwill claim must match the entries on the
repair order. The claim entry requirements of this document are also obligatory in the case of
local goodwill decisions
One warranty claim per vehicle

A separate warranty claim has to be submitted per vehicle/repair order, in which several defect
codes can be invoiced jointly, provided that this involves work of the same Warranty type.
A maximum of 99 items can be recorded per warranty claim. If there are more than 99 items,
the warranty claim cannot be recognised.
5.1 Description of the Claim Fields

As various IT systems are used worldwide, it cannot be described how to operate in a specific
system in detail. The claiming procedure must be in accordance with the user manual for the
particular IT system. Therefore, the individual claim fields found in S-Gate/WXE will be de-
scribed (some of the mentioned fields are not available in every system):
Dealer number: (5-digit)
The dealer number for the warranty must be entered as a 5-digit number.
Example: Dealer no. 00107
Chassis number (VIN): (7-digit)
The last 7 digits of the original BMW / MINI vehicle identification number has to be entered,
also in case of ALPINA vehicles.
Claim number: (6-digit)
Is normally assigned by the system. It has to be ensured that the same claim number is not
used twice.
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Old claim number: (6-digit)

Only has to be specified, if referring to an already submitted claim that was refused fully or
partly (later claim / resubmission). If the "old claim number" is not entered in the field "Old
claim", the claim will be refused under certain circumstances due to "exceeding the submis-
sion period".
Claim type: (1-digit)
Initial Claim: “1”
Later claim: "2"; In this case, the old claim number must be entered in the box "Old claim num-
ber".
Warranty start date: (6-digit)
Here the warranty start date has to be entered (definition see chapter 1.7, “Start of Warranty”).
In the case of unregistered new vehicles "00 00 00" as warranty start date has to be entered.
In these cases, WG-stage 4 (=pre-delivery deficiencies) is involved.
In the case of parts warranty, the invoice/repair/purchase date of the part concerned has to be
specified here.
Customer Type: (1-digit)
Regular / Transit / International transit customer (Definition see “Glossary, Description of Most
Important Terms”)
Repair date: (6-digit)
Date of repair or completion; if the vehicle cannot be repaired on the date of acceptance: the
date of last stamp.
Mileage: (6-digit)
Total mileage of the vehicle respectively mileage of the part (see notes for filling out the repair
order in case of parts warranty in chapter 4.3). In case the vehicle has to stay longer at the dealer
workshop the mileage at the delivery date to the customer has to be entered.
Warranty type: (1-digit)
Defect code: (10-digit)
Important: This is a matter of describing the cause of a fault or the customer complaint.
WG-stage: (1-digit)
Will be determined by the system.
Authorisation number: (6-digit)
The corresponding authorisation no. is entered here.
Towing: (yes or no)
Job numbers: (7-digit)
Flat rate units and open time units
Part numbers: (11-digit)
Quantity: (1-digit to 3-digit)
The quantity is required for parts and flat rate units.
BMW contribution %:
A contribution from BMW Group can only be entered if the costs have been authorised (auto-
matic/manual authorisation). Only values in the range 20% - 80% (in steps of 10) are possible.
Sublet code: (2-digit)
Price: (8-digit)
Only sublet codes require a price to be filled in.
The amounts must always be entered without VAT. Any discounts are to be deducted (see
chapter 4.7, “Third Party Services”).
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When using several consumables, the total price has to be entered only once under sublet code
04. The quantities and costs of the several consumables have to be specified on the comment
page.
Dealer-Comment: (max. 600 characters)

This is where the information should be placed for the warranty department that is important
for assessment of the warranty claim. Please do not repeat the defect code but state the
technical reason why the part is defective / broken down. Please express yourself briefly and
informatively.
The following information is obligatory:
• Open times always have to be explained
• With Warranty type 2 and 3 additionally the warranty start date of the vehicle as well as
the total mileage of the vehicle
• For any subsequent damage: installation date of the part causing damage
• Defects with 77: cause of the fault must be described in detail
• With sublet codes short description of respective content, e.g. for towing costs (sublet
05/06) breakdown location and kilometres driven have to entered, respectively for con-
sumables (sublet 04) the amount has to be specified.
• If submitting claims for incorrect and short deliveries under WG-stage 4
• Goodwill authorisations always have to be explained
• The registration number / license plate of international transit customers
• In case of resubmissions/later claims the reason for the repeat submission
E.g. sublet code 04:
Enter the required amount in the comment section of the warranty claim. Charge net prices
(purchase prices) on the basis of the net dealer cost prices for common containers (BMW / MINI
purchase price). Enter the total value at sublet code 04 "Miscellaneous".
Example: 3 litres of engine oil 15W-40 (common container = 205 litre container) correspond
X.XX € (X.XX € = dealer ordering price for 205 litre container: 205 x 3). If you require several
different consumables for a warranty repair, please list all of these with quantities, descriptions
and costs in the comment field!
Attachments:
Depending on the local system there is the possibility to attach documents (accepted file for-
mats: JPG, JPEG, GIF, PDF, TRC, VAL, ZIP, XML) to the warranty claim. The file size is limited
to 2MB per file.
5.2 Transmission from Market to BMW / MINI

Claims should be sent daily or at least once a week.
In exceptional cases all warranty documents, e.g. diagnosis reports, copy of the evidence of
installation or purchase invoice (for part warranty), invoices from external firms, copy of the repair
order and evidence of time required or photos can be requested by the warranty department
by fax or e-mail.
5.3 Submission Time

Rapid submission of all warranty claims and goodwill claims is necessary in order to detect
quality fluctuations as quickly as possible and to assure liquidity in the dealerships. The faster
the claims are submitted, the faster the claims can be assessed and reimbursed.
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The submission time for warranty claims is maximum 14 calendar days after repair. The sub-
mission period also applies to later claims/resubmissions, which have to be submitted within 14
calendar days after rejection of the initial warranty claim.
An important KPI is the claim submission delay. This is the period of time between the repair
date and the entry date of the WG-claim. The dealer organisation can reduce the claim submis-
sion time by creating and sending claims on a daily basis.
5.4 Resubmission and Later Claims

In exceptional cases, it can be required that a claim gets resubmitted if it has been refused fully
or partly. This only makes sense if new aspects arise that make a new decision conceivable.
If in the initial submission of the claim some items have been overlooked, only the missing items
can be submitted via a later claim.
The reason for the resubmission must be provided in the comment field. Furthermore, the limit
for the claim submission in chapter 5.3 “Submission Time” has to be observed.
5.5 Goodwill Claim

The goodwill authorisation is not a goodwill claim itself. For each goodwill agreement, a corre-
sponding goodwill claim has to be submitted. A goodwill claim will also be checked the same
as a warranty claim. In this case an incomplete diagnosis can for example lead to abatement in
the amount released or a rejection of the claim, too.
Important: The claim can be submitted only for the scope of the authorisation (e.g. 50% ma-
terial). The authorisation number has to be entered in the goodwill claim, so that the forwarded
goodwill claim can be reimbursed according to the authorisation (in case of several defect codes
per claim, the authorisation numbers for each defect code have to be entered).
5.6 Claiming Procedure in case of a Breakdown

Our customers are very sensitive to breakdowns and perceive them as a reliability issue with
our products which affects the overall image of the BMW Group. For this reason, breakdowns
must be treated with the highest priority in the troubleshooting process.
Definition of a warranty and goodwill related breakdown

Within the warranty period or in the case of goodwill a defect, which leads to an unscheduled
visit to the workshop, is to be marked as a breakdown if
a) the vehicle is no longer fit to drive due to the defect and

- has to be towed or
- the defect has to be fixed on the spot in order to continue driving (so-called “on spot
repair”) or
- the defect has to be fixed via so-called “partial on spot repair” in order to be able to bring
it to the next dealership
Or
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b) vehicle driving restrictions are present

- indicated by Check Control Messages of the vehicle showing a driving restriction perma-
nently (e.g. Limp Mode) or
- to continue driving if the defect presents a high probability of further damage to the vehi-
cle (e.g. sunroof / rooftop cannot be closed) or
- to continue driving if the defect presents possible health hazards (e.g. defective A/C at
hot climate).
In the following cases a defect is not defined as a breakdown: Tire damage, key locked-in, mar-
ten bite or incorrect fuel-filling.
Attention: The prerequisite to report a warranty or goodwill related breakdown is to fulfill all
criteria described in chapter 3.2, “Check whether Warranty or Goodwill Applies”.
Claiming of warranty or goodwill related breakdowns

With the overall goal of ensuring the quality standards of our vehicles in mind, it is essential that
all warranty or goodwill related breakdowns are identified, tracked and reported.
This can only be achieved through the use of a breakdown indicator in the warranty or goodwill
claim.
The defect coding of the corresponding fault in the warranty or goodwill claim remains the same
and is set according to the KSD.
In the case of a warranty or goodwill related breakdown, an additional breakdown vendor code
"99" must be added on the 9th and 10th digit of the defect code.
If there are several defect codes on one warranty or goodwill claim, the "99" has to be applied
only once to the defect code which caused the breakdown.
5.7 Claim Assessment

As there is always a risk of data loss in transmission, the correct amount of the weekly credit
should be checked thoroughly to make sure that all claims were transmitted properly to BMW
AG. In case the claims have already been credited, the reimbursement amount will be shown
on the credit note.
Preliminary assessment
Each claim transferred correctly is preliminary checked by the warranty IT system. Consistency-
and plausibility-checks (e.g., VIN, warranty start date) will be performed as well as basic checks
like submission time or consistency of part- and FRU numbers. At the same time, it is deter-
mined whether the specified claim number is already present to avoid for example double-
claims. In case of inconsistencies, the system might automatically reject the claim.
Note: Properly submitted claims will be credited within the same week, i.e. the correctness of
the claim is the key to a rapid reimbursement.
5.7.1 Manual Claim Processing
Beside the described regulations in this document, when assessing claims manually the follow-
ing regulations have to be considered additionally:
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− Claims automatically rejected by the system (e.g., because of missing diagnosis code)
may only be credited manually when giving a meaningful explanation (in the comment
field).
− Cases of heaping unjustified automatic rejections due to central presetting are to be
communicated immediately to the “AG Central Warranty Department”.
− Transferring costs to the AG contribution manually requires the preliminary agreement
with the “AG Central Warranty Department”.
To fulfil the general BMW AG warranty principles, a so-called 4-eyes principle has to be imple-
mented in the decision process of manually assessed claims following the decision matrix
given below:
Head of Service
Claim Customer Field Support/ Head of War-
of company
Assessor Relation Area Manager ranty NSC
owned stores
Claims within
X
WG-Stage 1-8
Authorisations Up to Up to
Up to 10.000€ Up to 10.000€ Over 10.000€
for WG-stage 3 10.000€ 10.000€
Buybacks /
X
Takebacks
The table outlines in which case a second assessor has to approve the decision.
This is to be documented appropriately (e.g. as a comment in the claim). The organisational
hierarchical and functional level of the second assessor is defined in the corresponding organ-
isational model (BMW AG, NSC). Required deviations are to be agreed upon with the “AG Cen-
tral Warranty Department”.
Above these, monthly reporting on a single claim level is required and is to be presented to
the responsible warranty persons (e.g. Head of Warranty, market support warranty) on the fol-
lowing key figures (amongst others):
− Manual decisions on warranty claims above 10.000,00 EUR
− Manual decisions on goodwill claims above 5.000,00 EUR
− Buybacks / Takebacks
5.7.2 Results after Claim Assessment
Claims have been reimbursed

Claims that have been reimbursed are booked by the dealer (with his accounting department).
Thereafter, the entire documents are filed in such a way that this operation can be reproduced
at any time. The best place is in the vehicle file.
Goodwill claims are to be paid immediately to the customer if the customer has already paid for
the repair.
Items of the claim have been rejected or reduced

Refusal/reduction of individual items or the complete claim can have various reasons, e.g.:
− Flat-rate units are rejected because they are incorrect. It has to be ensured that AIR
or the current KSD CD is used.
− Repeat entries of main work: Including items that are already included in other work
scopes.
− Defect codes that are incorrect or invalid or that do not correspond to the part or the
claim will also be rejected. To determine the defect codes, AIR or the current KSD CD
has to be used.
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− In the case of goodwill claims, values are reduced: the claim exceeds totally or
partly the cost authorization.
− Certain items are not reimbursed in the case of goodwill claims, e.g. consum-
ables (oils, anti-freeze protection, etc.) or non-catalogued flat-rate units (open times).
− Items have been listed, but not explained accordingly in the comment field,
e.g.:
o Troubleshooting in the form of uncatalogued open times
o Amounts have been billed in such a way that it cannot be discerned what has been
billed. These concerns in particular amounts submitted with sublet code "03" or
"04". All amounts submitted with these codes must be justified in the comment
field.
− Incomplete or missing diagnosis, test modules not completed: The increasing

diagnostic capability of the individual components means that in future the checking of
warranty claims can be increasingly automated. Therefore it is especially important to
ensure a correct diagnosis and a complete documentation.
− Other reasons that preclude reimbursement: There is also no reimbursement for

the dealer organisation for example if the vehicle was not affected by the technical cam-
paign or if this campaign has been conducted by another dealer in the meantime.
5.8 Documentation of Warranty and Goodwill Claims

Careful documentation
For traceability all warranty documents must be stored by the dealer organisation so that they
can be viewed at any time without difficulty and at short notice and that the documents can be
easily allocated to the respective WG-claim, e.g.:
− Repair order with complete description of all repair stages particularly for open times
− Copy of the WG-claim
− Copy of all confirmation pages of the WG-claim in case of claim correction
− Vehicle user contracts
− Digital photos (see chapter 4.2, “Documentation of WG-Cases with Pictures”)
− Evidence of battery charging
− Battery test printout, energy diagnosis
− Copies of authorisations / dialogue requests
− Copies of external invoices
− Evidence of installation for part warranty / purchase invoice
− Diagnosis and programming documents
− Time logs for electronic time recording (respectively mechanics daily/weekly working
hour sheets)
This list is not exhaustive, it contains merely examples.
Retention period
In addition all warranty-related documents that are connected to the respective billing process
have to be archived. All claim documents are defined by legal specifications as general business
documents. These must be retained according to applicable legal requirements, at least how-
ever 5 years after repair date. Therefore backups should be performed regularly amongst others
for electronic data management.
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6 Warranty and Goodwill Reimbursement

A description of the individual items in a warranty credit note can be found in appendix 4).
6.1 Procedure for Initial Credit Note

All warranty costs are reimbursed by BMW AG with the credit note procedure on a weekly basis.
BMW AG raises the invoice on behalf of the service performer (NSC, importer or BMW/MINI
dealer) and at the same time reimburses the services performed (labour, parts incl. additional
parts costs and third-party services).
The initial credit note is a summary credit note, which contains all finally decided warranty and
goodwill claims (in the so called status “ready for AG crediting”) as well as the information about
all claims which are currently waiting for assessment or incorrect.
6.2 Cost Types

Warranty services are reimbursed on the basis of the tax law applicable in the respective coun-
try. This affects both the content and presentation of the initial credit notes as well as taking
into account local tax rates in the reimbursement of parts and various services.
6.2.1 Labour Costs
The reimbursement of labour costs is determined by the number of payable flat rate units (FRU)
respectively open times and the agreed value of the respective flat rate unit. The payable num-
ber of FRUs is thereby based on the published information (AIR / KSD CD, warranty manual)
towards markets and dealer organisations. The value of the respective FRU rate is based on a
value agreed between BMW Group and the respective markets.
The increase of these FRU rates is thereby based on the annually projected labour cost prem-
ises determined by BMW AG. These are based on inflation and productivity of the respective
country. Amongst others, additionally retail prices of direct competitors and own customer bill-
ing prices are included in the analysis.
An increase of the FRU rate must be applied for in writing via the standard form. This is only
possible when the dealer increases his FRU rate for mechanical work claimed to the customer.
To assess this request, BMW Group can check the dealer’s calculation of the FRU rate. The
form is provided by the responsible Aftersales Manager. Increases that go beyond the frame-
work herein defined are possible in principle; the resulting additional costs (differences in reim-
bursement levels) are to be borne by the respective market itself.
Further details on the reimbursement of labour costs are described in the "Warranty Labour
Rate Reimbursement Policy". Warranty and goodwill FRU rates are not reimbursed above the
local retail rates in the market. Market conditions are considered and an expense-based reim-
bursement is endeavoured.
6.2.2 Parts and Additional Parts Costs
Parts Costs
The reimbursement of parts costs by BMW AG is based on the market's cost price.
In case of exchange parts, only the replacement value of the exchange part is reimbursed, but
not the value of the corresponding new part.
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Important: If the exchange part is not available, the following process applies:
Procedure for the dealer:

The Dealer informs its contact person at the Importer that the necessary exchange part is not
on available, but the new part is available.
The Importer must now follow the process below for the actual warranty or goodwill case.
The Importer gives feedback to the Dealer within 24 hours (in exceptional cases: 48 hours)
telling them if the transfer is possible (new part  exchange part).The dealer can now obtain
the exchange part via the normal way.
Procedure for the Importer:

After receiving the Dealer's request, the importer starts a dialogue with his contact person in
the regional disposition (AG) in order to obtain a rebooked part. The regional disponent asks its
counterpart in the central disposition to carry out the transfer. (The importer could also adress
to his contact in the regional office who contacts the regional disposition then).
The importer will be informed of the decision and must inform the dealer immediately.
Additional Parts Costs: Landed Costs

Landed costs are reimbursed to the market, i.e. the expenditure that results from ordering parts
from BMW AG’s central warehouse to the main parts distribution centre of the NSC (transport
costs, customs, insurance etc.).
These landed costs are determined annually on the basis of the markets’ incurred costs and
form the basis for the reimbursement of landed costs for the next year. If these costs are not
delivered by the market, BMW Group has the right to freeze the factor (landed cost factor) and
if necessary cut this factor to a minimum defined by BMW AG. At the end of the year a settle-
ment is carried out based on the actual accrued costs and any overpayment is reclaimed.
On demand, all documents are to be presented by the market to substantiate the accrued
costs. If the data/documents submitted in relation to a requested increase are incomplete or
not plausible, BMW Group has the right to freeze the factor to the current level.
6.2.3 Consumables and Small Parts
Consumables such as oil and coolant are reimbursed for warranty repairs during the regular
warranty period. Basis for reimbursement of the costs of consumables is maximum the net
dealer cost price (BMW / MINI ordering prices) and not the retail price to the customer - for
standard containers e.g. engine oil 205 litre drum.
On this basis, the operating fluids required in the case of warranty claims are to be calculated
individually and billed under sublet code 04 " Lubricants, operating fluids, consumables, etc.".
Small parts such as grease, plastilube, loctite etc. are included in the FRU rate and are there-
fore not separately reimbursed.
6.2.4 Taxes
Warranty and goodwill services are reimbursed on the basis of tax law applicable in the respec-
tive country. This may include taxes and other charges if these are non-refundable according
to local law for the BMW partners. The markets confirm annually with the form “Parts Landed
Cost Form / Confirmation form warranty costs / service Inclusive costs”, that the correct war-
ranty and goodwill taxes have been considered.
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If the fiscal treatment of warranties changes in a particular country BMW Group has to be in-
formed immediately. In case of doubt, changes have to be verified by means of a tax question-
naire or by an expert’s report of the BIG 4 audit companies (Ernst & Young, Deloitte, KPMG,
PricewaterhouseCoopers).
6.3 Reimbursement of Goodwill Cases

Specifics reimbursement of goodwill
An authorisation in the case of goodwill only applies to the removal or installation of the dam-
aged part as well as for the defective part. Smaller Parts, open time and fluids required within
the repair scope can be claimed via a goodwill claim and must be properly documented in the
claim (same as in warranty).
Processing as for warranty

After the warranty department has processed the goodwill claims, depending on the decision a
credit note or partial credit or refusal is given. This can be seen in the weekly credit note. The
organisational sequence is the same as for warranty claims.
In the interest of customer care, the market or dealer should consider covering the difference
between the claim and the refund themselves under certain circumstances up to the payment
of the full amount.
Note: The paid customer invoice must be immediately and completely reimbursed to the cus-
tomer or partially in case of a partial contribution from BMW.
If individual items or the entire claim are rejected due to a mistake by the workshop (repair not
in accordance with BMW specifications, incomplete diagnosis etc.) the customer may in no
event be charged for the repair work.
Attention: An amount stated in the authorisation for the dealer's own contribution must never
be invoiced to the customer. The credit note issued to the customer is to be documented in
the vehicle file and kept in accordance with legal guidelines over a period of 5 years. In the event
of any warranty audit, deviations from this procedure would lead to debiting of the entire value
of the credit note from the dealer account. As ultimately the decision in relation to goodwill is
made under the condition that the dealer or the service workshop also accepts the prospective
share.
6.4 Checking Credit Notes

The warranty credit note is one of the most important documents for tracking claims. The war-
ranty credit note must be processed immediately for completeness and accuracy on receipt.
This is because it contains information which requires a response from the market's responsible
warranty clerk regarding return debits or overpayment, if applicable!
Any overpayment on the part of BMW Group is to be notified to the “AG Central Warranty De-
partment”.
Discrepancies determined in the context of retrospective analysis will be followed up and in the
case of unjustified complaints will be retrospectively debited.
Reprinting of warranty credit notes (duplicate)

If original warranty credit notes get lost partly or in total, but are required because of value added
tax legislation (as a tax voucher for the local tax office), a legally compliant and legally binding
duplicate has to be required and generated. The request of a duplicate has to be made via S-
Gate Portal  warranty  duplicates of warranty credit notes.
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7 Special Forms and Cases of Warranty
7.1 Technical Campaigns

A “technical campaign” must be carried out, if for certain vehicles a test, modification or rectifi-
cation is necessary after leaving the factory, i.e. not only in the case of safety-related defects.
This ensures that all BMW / MINI vehicles are in perfect technical condition or that this state is
re-established. In terms of customer orientation, delivery blocks or sales locks can be pro-
nounced.
Not an image problem
Experience shows that campaigns of this nature are usually regarded positively by customers.
The customer is thus assured that BMW or MINI is providing support with a sense of responsi-
bility, even after purchase.
Types of technical campaigns
There are technical campaigns with customer letters (e.g. recalls) and technical campaigns,
which will be carried out at the next dealer visit.
Generally, all technical campaigns must be carried out before the delivery to the customer, if
the vehicle has not been handed over to the first customer yet.
Delivery blocks
Vehicles affected by a technical campaign can be stopped via a delivery block if they are still in
the logistics chain. Those vehicles must be tested or reworked according to the specification
in the delivery block before they are handed over to the first customer or transported to the
VDCs (Vehicle Distribution Center).
Attention: In many countries, this procedure is required by law and violations can
have criminal consequences for all parties involved.
Technical campaigns on vehicles outside the warranty period
Technical campaigns can generally be claimed with a warranty claim, this means, the reim-
bursement is made regardless of the vehicle age and mileage.
7.1.1 Information to Markets and Customers
Since June 2016, the markets are informed about technical campaigns and delivery blocks in
their markets via the TCM (Technical Campaign Management) system.
The customers must be informed in accordance with the guideline by the delivery or care taker
dealer or by the market, respectively by the NSC, depending on the type of technical campaign.
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Campaigns with customer notification always include a draft customer letter. If necessary, the
customer data will be found out with the help of the relevant regulatory authorities.
Customers may also be informed by additional measures such as press releases.
Reservation of Technical Campaigns

For reservations of technical campaigns by a dealer the following must be observed:
- a reservation for a technical campaign can only be made when an appointment is
made (sending a customer notification is no appointment) and
- an already reserved technical campaign can only be carried out by another dealer, if
the reserving dealer gives his verifiable accordance (e.g. an E-mail)
Documentation of customer notification by the market or the dealer

For technical campaigns with customer notification the information which is sent to the cus-
tomers must be documented and archived. This aims to being able to prove at any time that
the information obligation has been fulfilled.
7.1.2 Carrying out Technical Campaigns
Always check vehicles on open Technical Campaigns

Generally, all vehicles must be checked on open technical campaigns before they are delivered
to the customer and each time the vehicle is in the workshop for service or repair cases.
It has to be ensured that all open technical campaigns have been performed before delivering
the vehicle to the customer. It may be necessary to check for open technical campaigns several
times, in particular if the pre-delivery check has been performed several weeks before the hand-
over to the customer. There are different possibilities to check whether the vehicle has open
technical campaigns, e.g. via KeyReader, S-Gate, ISTA, AIR, DWP etc.
From a legal aspect, the vehicle must never be handed over to the customer, if open technical
campaigns (especially with delivery blocks) exist.
Before the work is performed, the dealer has to determine whether the respective campaigns
have not possibly already been carried out on the affected vehicle by another dealer or service
workshop or whether the technical campaign has already been covered in the scope of another
repair activity. This applies in particular to vehicles of transit customers.
Technical campaigns also apply to transit customers

A customer, who has been notified about the necessity of a technical campaign, can visit any
BMW / MINI dealership. This means that transit customers should also be expected, and it goes
without saying that they are to be treated with the same care as established customers.
Observe information
It is essential that technical campaigns are carried out in accordance with the technical infor-
mation provided by BMW Group.
Terminating the billing period for technical campaigns

There is no time limit for technical campaigns. As long as a technical campaign appears to be
open in the official systems, it must be claimed immediately after the campaign has been carried
out.
Attention: The completed flag for technical campaigns is set when the warranty claim is im-
ported to the central BMW AG computer. To avoid a delay in display, the warranty claim must
be submitted immediately after repair.
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7.1.3 Completion Status and Billing of Technical Campaigns
State of completion
In the interest of our customers, BMW Group monitors the completion ratio of all technical
campaigns.
Completion control via S-Gate
All VIN-related campaigns can be accessed via S-Gate. The documents can be accessed and
printed out by clicking the SI-Symbol next to the special defect code under Service Warranty in
the applications in which the technical campaigns are displayed (Status of Technical Cam-
paigns, Vehicle Data).
Per respective market the following criteria can be queried:

• all technical campaigns (already completed and / or not completed)
• all affected vehicles per special defect code
• all technical campaigns for a certain vehicle, this also applies for transit customers.
Thus there is the opportunity to independently follow up the degree of completion of one or
more technical campaigns. Hence, this query option has to be used to conclude technical cam-
paigns in the interest of our joint customers as quickly as possible.
Settlement of technical campaigns

The work scope specified in the form of the corresponding service information is invoiced via a
warranty claim. The respective invoicing details are specified on the service information sheet
and are to be billed accordingly. Any deviation from the specifications delays processing of the
warranty claim and therefore the associated credit note, as these claims are automatically sub-
ject to correction respectively are rejected completely, if they deviate from the prescribed se-
quence.
Subsequent damage which is directly related to an open Technical Campaign can be submitted
under the Special Defect Code assigned to the Technical Campaign; an appropriate dealer
comment for these cases is mandatory.
Exception: BMW AG partially supports mobility costs for loaner vehicles or other mobility for
all new technical campaigns ≥ 12 FRUs decided as of June 1st 2016. The dealer must add the
corresponding comment in the warranty claim. For details, see chapter 4.3.3, “Sublet Codes”.
Collective claim via S-Gate / WXE

Via S-Gate there is also the option of submitting a warranty claim for several vehicles with the
same scope of repair work. This option only exists for special defect codes (beginning with
"00") within the completion of technical campaigns, if the repair scope is 100% the same for all
vehicles. For this, the scope of repair work has to be defined once only and then the affected
vehicles with the respective VIN can be entered.
Manually setting the completion flag

In the following cases in which no warranty claim can be submitted, it is possible to report the
vehicles to BMW AG so that the completion flag is set and the vehicles are displayed as "no
longer affected by the respective technical campaign":
04 = Vehicle is a total write-off and has been scrapped (evidence in the form of a scrapping
document required)
Therefore an email has to be send to w_vehicle_modification@list.bmw.com attached
with the evidence of the scrapping document. The scrapping document must contain
the chassis number of the scrapped vehicle, the date of scrapping as well as the con-
firmation of the scrapping company.
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06 = Dealer information: Work performed, however no warranty claim created. Work in-
voiced under regular defect code. Therefore an email has to be send to Steuer-
ungTA@bmw.de with the following information:
- VIN
- special defect code
- regular defect code, which has been used for claim settlement
- reason for not sending the claim
In both cases, the documentation for correctness of details with date and signature is made by
the service manager and person responsible for warranty at the dealer.
Vehicle is reported as stolen

Open technical campaigns must be carried out and claimed regardless of the legal state of the
vehicle ownership.
Open Technical campaigns on stolen vehicles cannot be flagged as completed, since they can
still be in traffic or be brought back into traffic later.
Vehicle allocation – Definition care taking dealer

In the case of older vehicles with second / third owner, it frequently occurs that these are no
longer serviced by the selling dealer. The basis of the dealer allocation for technical campaigns
is normally the selling dealer. Since June 2016 so called care taker dealers for technical cam-
paigns are fixed on the basis of service stays of the vehicles (2 times the same dealer within 18
months). They are responsible for informing the customer in case of callbacks if necessary. This
assignment also works transnational.
7.2 Warranty and Goodwill Abroad

In general BMW AG offers a 24 month warranty to each customer buying a vehicle without
charging the customer with the shifting of the burden of proof after 6 month.
BMW / MINI vehicles are technically specified and built for specific operation conditions and
local homologation requirements of the according country or region. A vehicle operated in a
different country or region other than it was originally designed for might be subject to warranty
exclusions (please see also the owner’s manual or country specific releases of the respective
market).
Being purchased and registered abroad, these vehicles will be treated like their own customers
(regular customers) in a warranty case.
Goodwill is independent of possibly existing warranty extensions or insurances. It is important
that a goodwill decision process is triggered just as for every other customer (see also chapter
4.10.4, “Extended Warranty Coverage”).
7.2.1 Treatment of international transit customers
International transit customers (e.g. vacation) have to be treated like regular customers. The
customer shall be protected of any advanced payment.
An agreement with the home market of the customer is not required.

The market or the dealer (DSA) decides independently, but will not be debited monetarily:
(international transit customer  AG budget  reallocation to the home market budget)
Handling:
 The dealer executing the repair claims a goodwill request (based on the premises as
outlined in chapter 4.11.1).
07.07.2017
BMW Group Page 59
 It is mandatory to include the license plate number of the vehicle on the claim.
 The customer has to be marked as “international transit customer” on the goodwill au-
thorisation request and later in the warranty and goodwill claim itself.
Note:
If the customer has provided an advance payment, the customer shall receive a compensation
payment via a bank transfer from the BMW/MINI Dealer abroad (currency effects are to be borne
by the customer).
7.3 Other Special Cases

Batteries
The energy diagnosis (see applicable service information 61 07 02 (875) „Battery master
document“), possible documentation of recharging are to be stored in the vehicle file. Fur-
thermore chapter 2.4 has to be considered.
All batteries including high-voltage batteries and LI-Ionen components are to be kept for
possible analysis purposes by BMW Group for 30 calendar days after final processing or
issue of a credit note for the claim. They can then be disposed of by the dealer.
Regarding the disposal of high-voltage batteries please see product information “Order and
logistics High-voltage accumulator, 2nd generation for hybrid technologies F10, F30, F01
and F02” provided by the department “Maintenance, Repair, Environmental Mgmt.”. Up-
dates of this product information have to be adhered to.
Note: Batteries in remote control keys or garage openers are consumables and are there-
fore not covered under warranty
Li-Ion high-voltage batteries and Li-Ion starter batteries

As of repair date September 1st 2015, the recycling costs for the disposal of Li-Ion high-
voltage batteries for BMW Group BEV, PHEV and HEV vehicles as well as Li-Ion starter bat-
teries (LISB) for BMW M vehicles can be claimed. The recycling costs for these batteries
can be claimed via defect code 99 99 01 22 00 using sublet 03 (net, see chap. 6.2.4).
The recycling costs must be claimed individually per VIN / repair, no collective claims are
allowed! It is mandatory to attach a scanned copy of the original invoice to the claim and
additionally store the original invoice in the vehicle file.
General information on disposal procedures is provided in the guideline document “Li-Ion
Battery Recycling”.
In case of any queries regarding the disposal process for Li-Ion batteries and the corre-
sponding costs, please contact the CoC for Recycling at recycling@bmw.de.
Upholstery Work
As a general principle, deficiencies to seats or seat covers for which the manufacturer is
responsible are to be repaired. Replacement of the complete seat is not justified in these
cases. Both complete seat covers and upholstery fabrics and leatherette can be obtained as
products sold by unit length via BMW Parts.
Please note the existing instructions for upholstery repairs in the aftersales systems (e.g.
PuMA, ISTA-D, etc.)!
Glass damage can only be covered under warranty if a manufacturing defect is involved. Dam-
age caused by external influences such as stone impacts cannot be submitted.
In such cases, it can be recommended to the customer to make a claim with their insurance
company.
07.07.2017
BMW Group Page 60
Wear parts
All vehicle parts undergo natural wear. According to the terms of warranty, damages result-
ing from natural wear are excluded from the warranty and will not be reimbursed by BMW
AG. Exceptions are repairs arising from a material defect.
Brake discs and brake pads (applies to vehicles from production date 01.07.2016
and parts from invoice date 01.07.2016):
Noises: A settlement under warranty is possible up to 20.000 km and max. 2 years.
Vibration / steering vibrations: A settlement under warranty is possible up to 30.000km and
max. 2 years.
This applies to both the vehicle warranty and parts warranty, provided the mechanical wear
limit (acc. Repair Manual) is not reached.
In case of parts warranty, the invoice date is valid regardlessly of the vehicle age.
Exception: Vehicles with NAO pads Gen 1 (F1x, F0x), details according to GWK Newsletter
1/2016.
Tyre complaints are to be handled by the BMW / MINI dealer in conjunction with the tyre
manufacturer directly.
Tyre imbalance
The rebalancing of tyres is part of the normal maintenance and cannot be invoiced via war-
ranty.
If, in exceptional cases, a customer complaint determines that the tyres of a new vehicle
have to be rebalanced, the costs will be covered up to a maximum vehicle mileage of 2.000
km.
Light bulbs belong to wear parts (see PuMA no. AG 44162140), however they have a warranty
limit of 12 months from the warranty start date on (with the exception of xenon / LED lights,
here the limit of 24 month is applicable).
Adjustment work (e.g. wheel alignment check, door adjustment) can only be invoiced to war-
ranty where a customer fault can definitely not be determined. In case of the wheel alignment
check, these costs can only be settled -in exceptional cases- up to a maximum mileage of
10.000km and/or 6 months after vehicle warranty start date.
Exception: Should a wheel alignment be necessary as part of a legitimate GWK repair, the
repair costs can be fully claimed including the alignment for the front and rear axle.
Test drives (road test) can be settled via the warranty claim (if transparency exists for time
recording, performance, scope, etc.), only if it is absolutely necessary in the context of trou-
bleshooting, that the productive workshop employee (e.g. mechanic, mechatronics)
• conducts a test drive with the customer's vehicle only when there is no other more effi-
cient way to identify the problem with the existing diagnosis devices or
• is instructed within the repair (repair manual, PuMA case) that a test, calibration, regener-
ation or adaptation drive has to be carried out.
Please note: Test drives as part of the final check generally belong to the duties of the
service advisor or workshop supervisor and cannot be reimbursed via the warranty claim.
SKD / CKD Products, Scope of Local Content

In warranty and goodwill cases involving assembly and local content of SKD / CKD products
(semi knocked down / completely knocked down), each production community or local man-
ufacturer (assembly partner, joint venture or factories not part of the factory environment of
07.07.2017
BMW Group Page 61
BMW AG) covers the costs of warranty and goodwill. In this connection, a contractual ar-
rangement is to be reached to ensure proper handling. The current guidelines regarding
goodwill have to be observed also by local content.
The warranty department of the market is responsible for local handling of these costs. In
this context, everything that has not been made by BMW Group is local content. The same
guidelines apply to local content of other markets.
ALPINA vehicles are manufactured by ALPINA Burkhard Bovensiepen and have their own
vehicle identification numbers that are not identical to BMW vehicle identification numbers.
The standard BMW warranty and goodwill claiming process applies for all BMW components
with the exception of the blocked main groups, ALPINA modified components or any sub-
sequent damage caused by ALPINA components. The BMW vehicle identification number
must always be used for all warranty claims affecting BMW parts. The BMW vehicle identi-
fication number can be found in the vehicle documents.
For ALPINA components please contact ALPINA Burkard Bovensiepen in Buchloe who is
the direct warrantor (address see appendix 3).
Important: This claiming procedure is valid worldwide, except USA.
Vehicle conversions / Tuning

If a vehicle is retrofitted with a part specific to BMW / MINI (as per part types 1, 3 and 5), it
should be ensured in the case of warranty or goodwill claims that this claim must be submit-
ted under Warranty type 2 or 3 for parts warranties.
Conversions and components that that do not comply with BMW specifications and deviate
from the series status (e.g. tuning vehicles) are not subject to warranty of BMW AG. Conver-
sions and components that require a local vehicle compliance certificate (e.g. hearse) are
also not subject to the BMW AG warranty.
Which construction groups are excluded from the warranty can be queried for the respective
vehicle via its VIN. Subsequent damage outside the specified construction groups that is
attributable to tuning activities is also excluded.
Pre-production vehicles are generally excluded from the warranty, unless it is upgraded to
the series-production status (info from “central upgrade department” / “Zentrale
Hochrüststelle”; for information regarding the warranty start date see chapter 1.7.1,
“Warranty for Vehicles (Warranty Type 1)”).
Vehicle Coding
BMW AG reserves the right to mark special vehicles in certain cases with internal signs (in-
dicating tuning, conversions, users of incorrect/wrong fuel etc.). This vehicle coding means
that information related to the specific vehicle is saved and referenced via the VIN. This is
intended to ensure that only damages that fulfil the conditions for material fault liability are
managed via warranties and hence that claims against BMW AG really exist.
Such coding does not mean that the vehicle or certain components are automatically ex-
cluded from the warranty. Usually the sole consequence of the coding is that the warranty
claim is processed manually. It will thus be examined whether and to what extent the under-
lying technical complaint is related to the respective information.
The responsible warranty department has to be contacted if you determine that a code has
been created for a vehicle (e.g. "U", "T").
The customer should not be informed until the warranty department has explained what the
code signifies and why the vehicle has been assigned a code.
Note:
If tuning / conversion activities are suspected on a vehicle by the dealer, this must be re-
ported immediately to BMW AG (via the form in appendix 5) so that this vehicle can be coded
accordingly via e-mail: w_vehicle_modification@list.bmw.com.
07.07.2017
BMW Group Page 62
8 Legal Terms
If repairs are insufficient
In rare cases a defective vehicle cannot be completely repaired even though all technical re-
sources have been exhausted, or that it is not reasonable to expect the customer to accept
other repair attempts.
The further rights to withdraw from the contract, abatement of the purchase price or damage
compensation result from the contractual relationship between customer and seller. The cus-
tomer can only assert these rights with respect to the selling contractual partner.
8.1 Abatement
Abatement of the purchase price under the warranty means that the purchase price is lowered
at a later date by the “reduced value”. This must not be confused with impairment of value,
which is lowered, for example, when a vehicle is damaged in the event of an accident.
After abatement the customer is not entitled to another repair of deficiency, as the “reduced
value” is satisfied with the abatement. Accordingly remedial repairs are always to be preferred.
8.2 Withdrawal from Contract

Withdrawal (previously annulment) is understood as the cancellation of the purchase contract
by reversal of the received services.
In order to keep the customer a follow-up transaction should be desired, in the course of taken
back the defective vehicle to another vehicle of the customer’s choice. The follow-up transac-
tion is to be processed and settled independently from the original purchase contract and to be
documented separately.
Note: Detailed information can be obtained from the guide „Warranty Manual for submitting
buybacks between Subsidiary / Importer and AQ-83 within the warranty period", which can be
provided on demand. The “International Customer Relations Department” can be contacted in
case of any questions.
Dealer approaches the market

If the dealer wants to pass on claims to the market, the warranty department must be contacted
first in order to reach agreement on whether and to what extent the market will grant the claims.
Market approaches BMW AG

If the technical responsibility has been clarified definitely and BMW AG is responsible (e.g. BMW
AG lab report), the warranty department of the market can contact the responsible market sup-
port manager of “International Customer Relations Department” to coordinate the remaining
procedure regarding the settlement.
8.3 Legal Disputes

As a general principle, legal conflicts with a customer about warranty questions should be
avoided. This means that in the event of disagreement all those involved must make an effort
to reach an amicable agreement. Even a court case that is won from a legal point of view can
be lost with regard to the customer relationship.
Before a legal action is commenced, all technical aspects of a warranty question are to be clar-
ified concluding.
07.07.2017
BMW Group Page 63
Inform BMW Group

Sometimes, even with the best of intentions, legal action cannot be avoided. If it is clear to the
dealer that a customer wants to take legal action to assert a claim, he has to contact the market
immediately.
As a general principle, the obligation to inform also applies if a customer intends to assert al-
leged product liability claims. In this case BMW Group also has to be informed immediately.
Parallel to this, any defective parts must be isolated and stored separately as secured evidence.
Important: BMW AG can only agree to cover costs for any legal, court and expert assessor
costs in the context of the contractual agreements between the market and BMW AG, if BMW
AG has been informed in advance and has been included in the further decision making.
Process of securing evidence

Upon application of a party, the process of securing evidence involves a court decision to com-
mission an expert surveyor to provide an evaluation of the deficiency that led to the complaint.
In this context, the following must be borne in mind:

− The application for preservation of evidence automatically suspends any lapse of the
period of limitations for warranty claims.
− Where evidence is taken, in all events a qualified employee of the BMW / MINI dealer
should be present and where possible also of the market.
− It is therefore especially important that the BMW / MINI dealer informs the relevant BMW
departments immediately about the date for taking of evidence.
Out-of-court settlement
An out-of-court settlement is an agreement that settles the dispute between the parties. A
compromise is reached, whereby both sides make concessions. If an out-of-court settlement
is proposed, it should always be ensured that the out-of-court settlement includes a right of
revocation to facilitate later agreement between market and BMW AG.
Set time limits

In legal disputes, various time limits must be observed (e.g. within the scope of pending legal
proceedings). The market is itself responsible for respecting these time limits.
Costs
The BMW / MINI dealer must pay any costs incurred for a legal conflict or which he or she is
told to pay by a court itself. Only in case the market or BMW AG has agreed to cover these
costs, can they be billed later.
07.07.2017
BMW Group Page 64
III. Appendix
1) Warranty Parameters 65
2) Important Defect Codes in case of W&G 66
3) Contacts 67
4) The Individual Warranty Credit Note Items 68
5) Form for Reporting Conversions / Tuning 69
07.07.2017
BMW Group Page 65
1) Warranty Parameters
Parameter Description Limit

Warranty Vehicles 24 months
Periods
(in each case Original BMW/MINI ( exchange) parts: 24 months
unlimited
Exchange on Warranty type 1 period proceeds according to remaining
mileage)
warranty period of vehicle
Exchange on Warranty type 2 and 3 24 month

Exchange on WG-stage 7, warranty period endures according to
financial contribution on repair costs of Warranty type 2 or 3
customer or rather insurance
Light bulbs 12 month
Corrosion perforation:
Warranty start date as of 01.01.2004 12 years
Paint 3 years
5 years and/or 100.000 km for ECE-
versions Gen2 E72, F04, F10h, F30h,
F01h/F02h
6 years and/or 100.000 km for ECE-
High voltage battery and its units
versions Gen3 of F30, F45, G11/G12,
G30 and F60
8 years and/or 100.000 km for BMW i
vehicles (I01, I12)
Tyre Rebalance, in exceptional cases up to a maximum road distance of
imbalance 2.000 km
Break discs Noises up to 20.000 km and maximum
and break 2 years
parts
Vibration / steering vibrations up to 30.000km and maximum
2 years
Adjustment wheel alignment check, in exceptional up to a maximum mileage of 10.000 km
work cases and/or 6 months after vehicle
warranty start date
Submission Warranty and goodwill claim 14 calendar days after repair

time
Later claim, resubmission 14 calendar days after rejection of the
initial WG-claim
Documen-ta- Storage limit for the documents named 5 years
tion within chapter 5.8
Authorisation Limit between authorisation request date 30 calendar days or maximum
and repair date additional 2.000 km
Authorisation In case of warranty (total costs incl. paint Total costs for the repair exceed a value
procedure for material and parts without set-up times) of 300 FRUs
paint and
corrosion In case of goodwill Authorisation is always required by the
damage warranty department
Obligation to To ensure the warranty part is kept phys- Retention period of 90 days after the
store parts ically available in the case of a credit note is issued or until the service
requirement representative calls and examines the
parts on site
07.07.2017
BMW Group Page 66
2) Important Defect Codes in case of W&G
Description Defect Code
Storage damage (see chapter 2.3.2):

- for industrial contamination/environmental im- 5191459800
pacts, surface rust
- for water marks, local discoloration, swellings, 5191469800
corrosion, scratches, chips, minor dings
BMW i Diagnostic work before routing to qualified

BMW i dealer (see chapter 4.8.3):
- High-voltage diagnostic work before routing 99 99 01 20 00
- CFK (carbon) damage analysis before routing 99 99 01 21 00
Defect codes with 77 (see chapter 4.3.1):

Usage only in exceptional cases, if no defect code defect code with "77" as the
is available on AIR / KSD. 5th and 6th digits
Precondition:
Detailed description of the fault in the commentary
to the WG-claim. Note that the claim will be re-
jected if a regular defect code is available on AIR /
the KSD CD.
Breakdown (see chapter 5.6): defect code with "99" as the

Usage in case of warranty or goodwill related 9th and 10th digits
breakdowns
Recycling costs High Voltage Batteries 99 99 01 22 00

(see chapter 7.3):
Recycling costs of High Voltage Battery for hybrid
and electric vehicles
07.07.2017
BMW Group Page 67
3) Contacts
In case of any questions please contact the “AG Central Warranty Department”
Address: BMW Group / AQ-14

80788 München
Further responsibilities:
Customer Care AQ-14 General questions / proposals:

Warranty and Goodwill Management Warranty.Contact.BMW-
(AG Central Warranty Dept.): AG@list.bmw.com
- Concepts and Processes Vehicle coding:
- Warranty and Goodwill Steering w_vehicle_modification@list.bmw.com
- Warranty Audit
- Customer Satisfaction with W&G GWKS-Board:
- GWKS-Board GWK-Board@list.bmw.com
- International Customer Relations International Customer Relations:
crm_gwk_team@bmw.de
Technical Campaigns AQ-83 SteuerungTA@bmw.de
Special Cases AQ-83 sc.market@bmw.de
Supply Chain and Operations BM-33 Further information can be requested

under
- Lifestyle Collections BMW Group Lifestyle.Aftersales@bmwgroup.com
Retail Equipment BD-241 In case of complaints or questions

reagrding special tools, please con-
- Product Management sider the instructions within ASAP
(Service/Technic Special Tools).
inquiries.equipment@bmwgroup.com
Project Parts Life Cycle and Cost Management UA-9 recycling@bmw.de
Technical Support and Warranty UX-VA-3 Fax +49-89-382-33220
- BMW Motorrad
ALPINA Burkhard Bovensiepen

Alpenstrasse 35 - 37
86807 Buchloe
Deutschland
Tel: 0049 82 41 / 5005-0
Fax: 0049 82 41 / 5005-155
07.07.2017
BMW Group Page 68
4) The Individual Warranty Credit Note Items
1. Name and address of importer

2. Date of credit note and dealer number of importer
3. Invoice number (Number of credit or debit note)
4. Item number for designating a certain line
5. W = Warranty, S = Service Inclusive, M = Mixed claim
6. Warranty claim number
7. Vehicle identification number
8. Repair date
9. Defect code
10. Part numbers or flat-rate unit numbers
11. Designation of parts or labour items
12. Number of parts (unit volume) or flat-rate units
13. Percentage participation BMW payment
14. Part price or flat-rate unit price
15. Rebate rate in percent per item
16. Total price parts and labour per item
17. Total reimbursement parts and labour per claim
18. Comment on the warranty claim from BMW to the dealer
07.07.2017
BMW Group
Send to Email w_vehicle_modification@list.bmw.com Company stamp
Sender Dealership Klicken Sie hier, um Text einzugeben.

Dealer number Klicken Sie hier, um Text einzugeben.
Contact person Klicken Sie hier, um Text einzugeben.
Telephone Klicken Sie hier, um Text einzugeben.

Fax Klicken Sie hier, um Text einzugeben.
Email Klicken Sie hier, um Text einzugeben.
Topic Documentation of tuning conversions
Please cross the converted main group(s) and describe the exact deviation.
Chassis no. 7 digits Klicken Sie hier, um Mileage

Text einzugeben.
11 ☐ Engine 32 ☐ Steering
12 ☐ Engine electrical system 33 ☐ Rear axle
13 ☐ Fuel supply 34 ☐ Break
17 ☐ Cooling system 36 ☐ Wheels and tyres
18 ☐ Exhaust system 37 ☐ Integrated suspension systems
21 ☐ Clutch 41 ☐ Bodyshell
23 ☐ Manual transmission 51 ☐ Body equipment
24 ☐ Automatic transmission 52 ☐ Seats and bench seats
27 ☐ Transfer box 61 ☐ General electrical system
28 ☐ Double clutch gearbox 62 ☐ Instruments
31 ☐ Front axle, front wheel control 63 ☐ Lights
Conversion: Klicken Sie hier, um Text einzugeben.
Klicken Sie hier, um Text einzugeben.
Based on the transmitted data, additional main groups need to be marked where necessary.
- For engine tuning: main group 10, 11, 12, 13, 17, 18, 26, 34
and depending on the power train main group 21, 23, 24, 27, 28, 31, 33.
- For unreleased wheels and tyres: main group 31, 32, 33, 36 and furthermore main group 27 for all-wheel.
- For lower suspension setting or drive train components: main group 31, 32, 33, 37and furthermore for
wheel arch crimping or retrofitment of non-serial joints main group 41.
- For retrofitment LPG: HG 10, 11, 12, 13, 16, 18
For the correctness of the above:
________________________ _____________________ ___________________________

Date Service-Manager (Dealer) Warranty responsible (Dealer)

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BMW Group

BMW / BMW M / BMW i / MINI -

Approval: 07.07.2017 by Mr. Ganser, AQ-14

File Source: The current version is located under:

It cannot be ensured that printed versions of this document are still

All changes are marked in yellow.

BMW Document Type: Manual

Munich, July 2017

II. GLOSSARY, DESCRIPTION OF MOST IMPORTANT TERMS 8

1.2 Responsibility of the Markets 10

1.3 Conformance to Regulations 11

1.4 Basic Terms 11

1.6 Warranty Types 12

1.7 Start of Warranty 14

1.8 Warranty Periods 15

1.9 Warranty - Overview 16

2 DELIVERY, STORAGE AND PDI 18

2.1 Inspection of Damage 18

2.2 Incorrect and Short Deliveries 18

2.3 Storage and Care 19

2.4 Handover to the Customer 20

3.1 Discussing the Complaint with the Customer 22

3.2 Check whether Warranty or Goodwill Applies 23

3.3 Customer Mobility in Event of Warranty Repair 23

4 WARRANTY AND GOODWILL PROCESSING 24

4.1 Type and Scope of the WG-Repair 24

4.2 Documentation of WG-Cases with Pictures 24

4.3 Repair Order 25

4.4 Time Recording 33

4.6 Damages because of Paint and Rust 34

4.7 Third Party Services 36

4.9 Original BMW / MINI Parts and Exchange Parts 38

4.10 Storage of Defective Parts 40

5 WARRANTY AND GOODWILL CLAIM 45

5.1 Description of the Claim Fields 45

5.2 Transmission from Market to BMW / MINI 47

5.3 Submission Time 47

5.4 Resubmission and Later Claims 48

5.5 Goodwill Claim 48

5.6 Claiming Procedure in case of a Breakdown 48

5.7 Claim Assessment 49

5.8 Documentation of Warranty and Goodwill Claims 51

6 WARRANTY AND GOODWILL REIMBURSEMENT 52

6.1 Procedure for Initial Credit Note 52

6.2 Cost Types 52

6.3 Reimbursement of Goodwill Cases 54

6.4 Checking Credit Notes 54

7 SPECIAL FORMS AND CASES OF WARRANTY 55

7.1 Technical Campaigns 55

7.2 Warranty and Goodwill Abroad 58

7.3 Other Special Cases 59

8.2 Withdrawal from Contract 62

8.3 Legal Disputes 62

AIR Aftersales Information Research

II. Glossary, Description of Most Important Terms

Authorisation Approval to what extent BMW AG or the market takes a share

BMW Group BMW AG and their national sales companies