Vlado, that's crazy!

Thankfully you and your wife were safe. It sounds identical to what started to occur on our car, but I shut the vehicle right off.

Here's the update: My 2011 X5 35d has been in the shop since August 17th.

We were told last Thursday that an SPI inspection would be conducted, which would take 3 weeks at a minimum, but could take longer.

SPI stands for Special Product Investigation. Apparently, there are only 3-people in the SPI department within BMW North America's enterprise.

In short, our brand new vehicle with less than 400 miles will be in the shop for over 5 weeks, at a MINIMUM. We're not being compensated at all. The vehicle was also damaged during transport to the dealership, as the towing company put super course abraded nylon and metal straps through the 20" 214 wheels, in an insane fashion (Yes I told him his procedure would damage the vehicle, he said it wouldn't, and he signed off as such on the receipt).

BMW is now talking about "repainting" the wheel instead of replacing it. I said "no way" to repainting it, given it's a powder coated wheel. The tow truck driver also managed to scratch the rear passenger door (next to the damaged wheel).

At this point, what do you guys think?

I'm dealing with the following:
1) BMW Financial - as the SPI dept. told me to call them to put our account on hold during the repairs, to which they refused.
2) SPI Department- who is not taking responsibility for the fire, at this time.
3) BMW Road Side Assistance Damage Mitigation Department
4) BMW Customer Care who is attempting to keep me happy, by promising to find an amicable solution, promising phone calls, etc., yet I've not heard from them for over 1-week.

So, should I ask for a replacement vehicle? Should I ask for compensation?

My wife has also seen photos and heard of vehicles burning down, and she's quite afraid of having this one returned. I must repeat, BMW IS NOT TAKING RESPONSIBILITY for the smoldering/fire that occurred.

In fact, they insinuated that we may be responsible in some way! Ludicrous...

Thanks again for any thoughts and to the poster who posted that picture. Maybe it would have been better if the damn thing burned to the ground, although then BMW would have said we caused it.

I was asked 1-dozen times "are you sure you didn't install any aftermarket items to the vehicle?" Keep in mind they have the vehicle, in their possession. Of course, I didn't install any aftermarket items. What's there to install? The car has everything I could ever want, save for a propensity for catching fire! ;-/