BMW Recall 98V-142: Power train – differential unit

Affected: 1998 BMW 540i. Filed with NHTSA on June 22, 1998, covering about 1,100 vehicles.

The problem

Vehicle description: passenger vehicles. The differential pinion shaft within the differential case assembly was produced without the appropriate surface hardening. This can result in the shaft experiencing premature wear.

The risk

This condition will cause a noise from the differential and, ultimately, failure of the shaft and loss of drive.

The fix

Dealers will replace the entire differential assembly.

Recall details

NHTSA campaign98V-142 (98V142000)
ManufacturerBMW of North America, LLC
ComponentPower train › Driveline › Differential unit
Report dateJune 22, 1998
Owners notifiedDecember 28, 1998
Vehicles affected1,100
Initiated byManufacturer

Vehicles covered

Plus 4 other model/year combinations not covered on this site.

Owner complaints about the transmission & drivetrain

Frequently asked questions

Is the recall 98V-142 repair free?

Yes. BMW dealers will fix the problem at no cost: Dealers will replace the entire differential assembly.

How do I know if my car is included?

Not every vehicle of the listed model years is affected — the recall covers 1,100 vehicles built in a certain window. Check your 17-character VIN with our VIN recall check or at nhtsa.gov/recalls.

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.