Which parts fail
Components named in complaints (automatic and manual transmissions, CVT, axles, driveshaft, 4WD/AWD).
Mileage when the problem started
Owner reports
Selected complaints filed with NHTSA by 1999 BMW 323i owners, lightly cleaned up (personal details are redacted by NHTSA).
My husband was driving my 1999 BMW 323i, he pulled forward at a 45 degree angle on our street in order to back into our driveway. After putting it in reverse and trying to back up, the engine revved and acted as if it were in neutral, the reverse gear failed. It started working again the next day and worked fine for about 10 days. I was parked at a shopping center and when I tried to back out of my parking space, the reverse again failed. After a long wait, the person who was parked in front of me left and I was able to pull forward and drive home. The reverse was working again by the time I got home. It began failing more frequently, but usually will come back sooner or later. We took it to our BMW mechanic, he said the seal appeared to be broken and fluid had leaked out. He refilled the fluid and ordered a new seal. The reverse worked fine for 2 days, then started failing again. …
I bought a 1999 BMW 323i in January of 2000. It was a certified BMW. I haven't had much trouble with it. I have done typical maintenance, brakes, oil changes, new plugs, wires, etc. Last year I noticed while driving at speeds more than 65 miles per hour that the rpms would move from 2500 to 3000, and a light showed up on the dash. I got to work and check my manual and it is telling me the light is a service transmission light. If you see this light, pull over, put it in park, pull the emergency brake, wait and restart the engine to reset trans. I took it to my repair tech and he plugged my car into his computer and it states that the transmission is slipping out of 5th gear. Estimate for new trans is $4,000. For a rebuilt trans is $2,500.00. I don't have that kind of money for a 10 year old car. …
I was driving my 1999 BMW 323i on hwy 101 in santa clara, ca. The car sundenly feels "weak". I immediately pull off the next exit. At the traffic light after the exit ramp the car stalls. I restarted the car and was able to move it, slowly, to a parking lot. There I found that a). I lost the reverse gear b). The transimission program light was on. I attempted to start the car again to see if it moves but the engine keeps stalling - I noticed that the transimission does not appears to be shifting. It is like starting a manual shift car from the 3rd gear.there was no warning sign of all these. It happen all in a sudden. The car had just gone through the BMW 60K mile service (major service) a couple of months ago. I have the car towed to my BMW dealer and there they pronounce the transimission dead - transmission locked-up. I am scared! I could have been killed that day!
I own a 1999 BMW 323i. Recently, the automatic transmission warning light started to go on when I would drive my car on the highway. I took it into the local BMW dealership and it took about 3 diagnostic visits to determine that I needed a new transmission for $6K. My car had less than 80,000 miles on it. I then took it to several BMW specialist auto shops who explained to me in full detail the issue that this GM transmission is known to have. Apparently the transmission fails in 5th gear and defaults to 4th gear, which not only causes it to drive differently, but can cause other expensive issues. After reading similar complaints about this transmission, I am extremely disappointed that BMW has let this go and has not issued a recall. I am disappointed w/ the poor quality of the American made transmission, and will never buy another BMW again.
My 1999 BMW 323i would occasionally not engage in reverse. This happened initially without warning. After driving the car around for awhile, low and behold, reverse would engage. The dealer told me that the shift plate was not aligned and the car was thinking it was in neutral. After having that replaced at $700, the next day, same problem. Then the dealer said that it has to be that the transmission was gone. After having the transmission rebuilt at $2000, low and behold, 2 days later, the same exact thing starting happening. The car is in excellent condition and well maintained with 132,000. All of this started to happen on 10/22/2009. BMW needs to recall the vehicle because this has happened with several owners.
On November 1, 2000, I had a U.S. Air force appointment in the U.S. Pentagon in washington, dc. I proceeded to leave in my BMW 323i, which I lease through passport BMW in marlow heights, maryland. It was a dreary day, thus, I turned on the vehicle's headlights after starting the ignition. I placed the vehicle's gear in reverse and proceeded to back out of my parking space. However, the vehicle suddenly, and with great velocity, sped backwards. I immediately pressed the brakes preventing an accident. I tried this time to go forward and the car sped forwards back into the space I originally backed out of. I was quite shaken-up and completely analyzed the vehicle and my operation of it ensuring.
I have a '99 BMW 323i. My car recently reached 100,000 miles and have started experiencing transmission problems. The car will shift to reverse but with no effect. I have spoke with other BMW owners and have found this is a recurring problem and cost 5000 dollars to fix. Im in the united states marine corps and cant afford to fix a problem like this. I I am being deployed and am worried that transmission failure while im gone will be dangerous for my wife. I feel like BMW should pay for the transmission repair because its their bad choice for choosing faulty engines. They vehicle is extremely unsafe and should be recalled.
I own a 1999 BMW 323i. Sometimes the reverse does not work at all and on somedays there are no problems what so ever. I took the care into the BMW dealership and was told that I need a new transmission that would cost about $7,000. I am disabled and cannot afford this type of repair. I thought buying a BMW would be a great retirement car. I am very upset, especially reading on the internet how many people have the same problem and BMW does nothing to help. I have a 1997 381i that is down also. Have taken it to the dealership and my local mechanic. BMW has changed..I really need help ...
Tl* the contact owns a 1999 BMW 323i. While the vehicle was parked the gear shift slipped into reverse on its own and the rpms increased. The gear shift indicator lights would not illuminate. The contact was able to engage the emergency brake in order to avoid a crash and stated she looked at the instrument panel to see what gear the vehicle was in. The vehicle was not taken to the dealer for diagnostic testing. The vehicle was not repaired. The approximate failure mileage was 73,000.
1999 BMW 323i (e46) I didn't know my german car came with a crappy transmission made by GM in france. It failed after 89,000 miles and required a total replacement because parts are unavailable. This costs $4500. This is unacceptable and I'm sure others have the same problem because I've been reading about them on various BMW message boards. This should be considered a known defect and BMW is responsible for fixing this. They haven't taken any action to rectify this.
Transmission complaints in other 323i years
Frequently asked questions
How common are transmission problems on the 1999 BMW 323i?
NHTSA has 33 complaints about the transmission & drivetrain of the 1999 BMW 323i, 24% of the model year's 136 complaints. The component named most often is automatic transmission (28 mentions).
Is there a recall for 1999 BMW 323i transmission problems?
No. NHTSA lists no transmission & drivetrain recall for the 1999 BMW 323i, though it has 7 recalls for other components. If the problem is widespread, a repair may still be covered by an extended warranty or a manufacturer service bulletin — ask a dealer.
At what mileage do 1999 BMW 323i transmission problems start?
Half of the complaints with a recorded mileage happened before about 108,000 miles, and 4% before 25,000 miles.
Is it dangerous?
Owners linked 1 crash, 0 fires and 0 injuries to transmission & drivetrain problems on this model year. If you notice symptoms, have the car checked before driving further.
Source: U.S. National Highway Traffic Safety Administration (NHTSA) — owner complaints through October 20, 2026, recalls and defect investigations; fuel economy from the EPA. Complaints are unverified reports and are not proof of a defect. How we rate model years.