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2002 BMW M3 Coupe A/T – SMG Transmission Clutch Does Not Engage

E46 M3 Coupe and Convertible with SMG from start of production to 07/02. SITUATION Gear indicator in instrument cluster flashes while driving, or, when stationary, gear can be selected, but clutch does not engage, and indicator flashes. CAUSE “Hood closed” status is not recognized by SMG control module because one or both hood latch micro switches are not functioning properly. 1. If ONE of the micro switches has failed, it is possible to drive off, but gear indicator in instrument cluster will flash. 2. If BOTH micro switches have failed, gear can be selected but clutch will not engage and gear indicator in instrument cluster will flash. The micro switch failure could be caused by damage during assembly, or incorrect adjustment. Another possible cause is improper handling of the micro switches during a workshop visit. In the workshop, care should be taken to ensure that no tools are pushed into the lower hood latch assemblies as the switching element on the micro switch could be bent or damaged. The opening must not be used for holding tools! CORRECTION On a customer complaint basis, check function of both hood latch micro switches using DISplus or GT1. Replace faulty lower/lower hood latch assembly, or correct hood adjustment as needed. Adjustment procedure and specifications can be found in Repair Instructions 41 61 014. PROCEDUREdownload