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Dealer Letter

March 1, 1996

All BMW Dealers

Attention: Service Manager

Re: HEADLINERS FOR CONVERTIBLES

This letter will address the issue of headliner rejections under warranty.

Please note the following:

The main problems with headliners are as follows:

1. The mounting strings for the softtop headliner can breakout of their retainers in the plastic panel on each side of the headliner.

See Service Information Bulletin 54 04 95 (4219) dated July 1995 and Service Information Bulletin 54 04 95 (1219) dated November 1995. The Service Information Bulletin of November 1995 advises that adhesive is now available in one pint containers and also gives an 800 number for 3M product questions.

2. Convertible top headliner may become loose on the frame, especially in the area of the rear window because the plastic rivet has come loose from the top bow. See Service Information Bulletin 54 04 94 (4065).

3. The softtop headliner may be caught between the body and storage lid cover. See Service Information Bulletin 54 05 95 (4221).

4. The softtop headliner may be caught in the frame pulling the headliner down.

The majority of the headliners returned to the dealer network in recent months has been for the following.

^ The above mentioned repair fixes have not been utilized for repair,

^ Customer complaint did not correspond with failure pattern of part returned.

^ Customer complaint was for loose headliner on C-pillar, however, bow retainers on both sides have been broken in addition to the plastic panels attached to the headliner

^ Plastic bow bent in center and both sides of the retainer holes have been broken out. Break was horizontal instead of vertical

^ Bow retainer holes have been cut or broken with the use of pliers (plier pressure marks still evident).

During the appeals process and subsequent re-inspection of headliners returned, we accepted all headliners with the exception of

^ headliners damaged by force after they had been removed (cut with plier),

^ headliners for center bow coming loose (a problem which can be fixed by attaching screws),

^ headliners, stating that the repair was prior to November 1995 ignoring the fact that the repair fix was actually available as of July 1995,

^ rear bow of headliner was deformed and breakage of bow retainer area was inconsistent with typical damage (break is horizontal instead of vertical).

All headliners have been checked by one individual and appeals for headliner repairs are processed in a team to arrive at fair and reasonable solution to all parties concerned with the benefit of the doubt going to the dealer.

You may have had one or more headliners rejected in the appeals process. Please review part and paperwork carefully, comparing actual damage to original customer complaint Should you still feel that you received an unjustified headliner rejection once you were able to consider the above, please return the headliner together with all supporting documents, and an appeal to the Warranty Parts Return Center.

In case you need assistance in the review process, please contact your Area Team. We will be as generous as possible in processing the appeals in question. However, it is your responsibility to ensure that the repairs, if subleted, are conducted according to BMW standards.

BMW warrants its products against defects in material and workmanship and will cover, at no charge to the customer, the repair or replacement of a defective component. Please utilize a repair whenever it is a reasonable alternative to replacing parts according to BMW's published policies.