BMW Defective N-54 Engine Class Action Lawsuit

A California federal class action lawsuit claims that a number of 2007-2010 BMW cars have defective N-54 engines that can cause a delay in throttle response, lack of acceleration and severely reduced power — putting drivers at risk if the defect occurs in traffic.

According to the BMW N-54 class action lawsuit, BMW announced the development of the N-54 engine “with much fanfare” in 2006, touting the engine as state-of-the-art technology with twin turbochargers and a new type of fuel injection system. BMW claimed the N-54 would eliminate “turbo lag,” a common problem in turbocharged vehicles, and offer improved performance and fuel efficiency.

“Unbeknownst to plaintiffs and the public, the defendant’s advertising was false and misleading,” the N-54 class action lawsuit says. “Specifically, the ‘Ultimate Driving Machines’ promoted by the defendant contained several serious design flaws that render the subject vehicles unsafe.”

The lead plaintiff in the case, Tim Nguyen, says he and other proposed class members who bought or leased BMWs equipped with the N-54 paid too much and will have to sell their cars for less than they would have if they didn’t have the defect.

BMW issued a recall of the defective N-54 engines last year, but it is “nothing more than an illusory fix” intended to create a false sense of safety and security; the software replacement merely masks symptoms that develop shortly before a catastrophic fuel pump failure, the class action lawsuit claims.

The BMW N-54 class action lawsuit alleges breach of express warranty, violation of the state Consumer Legal Remedies Act and Unfair Business Practices Act, breach of the implied covenant of good faith and fair dealing, and violation of the federal Magnuson-Moss Warranty Act. It is seeking compensatory and punitive damages, civil penalties and restitution.

The case is Nguyen et al. v. BMW of North America LLC et al., No. 10-CV-02257.