You could help greatly by looking at the realoem link and telling me what parts the dealer says need replacing....

You are talking about 'satellites' and 'modules', yet I just see a single strut....what is the part number??????????

Ard, the original part numbers are 37126779703 & 37126779704 and this is what the Dealer originally replaced under warranty in 2008. The original part was discontinued and they have been replaced by an updated part 37126794353 & 37126794354. I was told by the Technician that the "satellites" sit on top of the shock and are part of the assembly and which he explained that they were controllers of some kind. The Part is described as "right and left EDC Shock/Satellite". Fault code 639C.

Well, the tech may be calling them 'satellites', but BMW calls them "Shock absorbers":

Shock absorber, rear left for BMW X Series (E53,E70,E71,E83) X5 (2006, 2007, 2008, 2009, 2010) (37126794353)

The tech is steering you wrong- there is only one part, it doesnt sit on top of the shock- IT IS IN THE SHOCK.

Now, maybe he is saying 'it isn't the shock itself, but the electronic valves within the shock- that sit on the top- that control the damping'..BUT that distinction is of no value to you as you cannot buy it separate from the shock.

You should search around for that fault code, and consider 'non-BMW dealer' solutions... parts are only 1400 each. 2800 and an hour or two to pop them on..how do they get to 5200?

I think the warranty is a bust...unless there are other non-shock parts on the list

I'm going to add a comment.

The terms of the warranty seem to state that a 'variable dampning suspension' IS, in fact, covered.

So they have a bit of an issue in that one place it is covered, elsewhere a shock is excluded. if you were to take them to court, or otherwise do something other than the ineffective 'telephone chit chat'. they may decide to split it...if they think you might have a case, AND they think you could muster a challenge and win....

Thanks for your input Ard. Here is the shop print out of parts. It is the control unit faulty that operates the valve coil. This has been my argument. The warranty states that the control module is covered. However, since the control module is part of the shock absorber and shocks are excluded they will not cover it. I have talked to the dealer and they talked to BMWNA and BMWNA have offered to pay for half of the cost which I think is very admirable of them since the car is out of warranty and 129,000 kms on the OD. I know this part has already been replaced and updated twice so obviously there is a manufacturing/engineering issue. Nevertheless, it is good will on BMWNA's part. This is not the first time the dealer has gone the extra mile for me. Now I need to deal with the SAL Warranty people for the other half of the cost of repair. It is difficult to reason with the SAL people because all they see is "shock absorber". The dealer has talked with them as well and I am getting nowhere. I fired of a letter to the claims administrator explaining my issue and argument, but have not heard back. Last time I spoke to the Claims Manager I did suggest we split the cost in an effort to show them I am reasonable and possible "good will" on their behalf, but they refused.

Agree with this assessment and the fact that this falls into a grey area of the SAL contract.

I think you would lose in court, however it might be cheaper for them to toss you a bone.

A