This is quite a disappointing story you describe and something that BMW AG Germany would most certainly disapprove of. You experienced the true side of BMW in Germany and now are dealing with all this mess you described above. It must spoil the entire experience for you.
I agree with the previous poster that you need to put your foot down and not let go until you have been satisfactory compensated.
I would first contact Customer Relations USA Phone # 1-166-697-5043 or e-mail them at CustomerRelations@bmwusa.com
Expect delays ... in my case it took almost 6 months and in the end it was a negative outcome. I simply gave up since I felt suing them for $700- was pointless.
I did however post and named the Dealership here in this thread provided in this forum. I recommend that you do the same.
Click here to go to Dealership Review
Some BMW Dealerships should simply not be allowed to deal with the BMW product, I think it is high time that BMW AG Germany spend some of there profits on making sure that BMW Dealerships meet the requirements when it comes to service and Customer Relations.