Feds Now Investigating 18,000 BMW 5 Series Sedans for Alleged Rear Diff Failures

BMW differentials are under scrutiny again, this time for the previous-generation 5 Series and its rear differentials.

News Editor
2021 BMW 540i xDrive

2021 BMW 540i xDrive

Jeremy Korzeniewski / Autoblog
Get Autoblog in your Google feed

The G30 BMW 5 Series

After the somewhat mixed reception of the F10 5 Series (2010-2017), the G30 5 Series was something of a return to form. Sure, it wasn’t like the E39, but there was more to say about the car. Many of us also tested it when it was new, and it was a genuinely good executive sedan.

Of course, it’s not perfect, both from a reviewer and ownership standpoint. Nonetheless, we’re glad some of the magic lost in its predecessor came back in the G30. However, the government is currently investigating the car, particularly the 2022 model year.

2021 BMW 540i xDrive

Jeremy Korzeniewski / Autoblog

The Issue

The National Highway Traffic Safety Administration (NHTSA) received a defect petition on September 1, 2026, to investigate alleged rear differential and driveshaft assemblies. The problem has been described as “Excessive wear and failure of the driveshaft to rear differential connection causes a loss of powertrain engagement to the rear wheels.”

So far, NHTSA has received only one petition, but the nature of the concern is enough to open an investigation. This may be related to a recall BMW issued in August. Recall number 26V525 states, “The connection between the driveshaft and the rear axle differential may, over time, be subject to excessive wear.” NHTSA said approximately 7,372 vehicles are affected, including the 840i, 840i xDrive, 750e, 540i, 540i xDrive, and M550i.

2021 BMW 540i xDrive

Jeremy Korzeniewski / Autoblog

No Resolution Yet

As it’s still a petition, there is currently no course of action apart from opening the investigation. As mentioned, this part is covered by 26V525, but the letter to NHTSA is slightly different, as the connection between the driveshaft and rear differential will cause total failure, not just excessive wear. Unlike the previous recall, this one is particular to the 2022 model year 540i, of which 18,150 may possibly be affected. The petition did not mention the 530i or 530i xDrive.

BMW has seen a couple of issues regarding its drivetrains recently. In December, a class action suit was lodged against the company over xDrive all-wheel-drive systems juddering and leaving owners with hefty repair and replacement bills. More recently, another class action suit was filed, alleging that the G05 X5, G06 X6, and G07 X7s have failing front differentials despite the ‘lifetime’ fluid and at the urging of the company that it does not need replacement.

2021 BMW 540i xDrive

Jeremy Korzeniewski / Autoblog

About the author

Anton Andres

News Editor

Anton Andres is a news editor at Autoblog and a motoring journalist with more than a decade of experience in the Philippines. He was features editor for Top Gear Philippines from 2022 to 2025 and features and road test editor for Autoindustriya.com.