Hi all, I'm new to the forum here, and I've done some searching and am still needing a little assistance with an error that came up on my E46, 2006 M3 with SMG. From a glance at the manual, it looks like the error (a little gear with a ! in the center) is either code 347 or 348, both of which are transmission related. One description is "Position R, N, D may not be possible."


Has anyone run into this issue before? The warning light came on weeks ago and then went off after the car was parked for a little bit, so I thought maybe it was just an odd temporary error message something since the car always drove fine, even with the light on, then once it disappeared, the car continued to drive fine, so it seemed like no big deal. My fault in a sense, I should have checked it out more when the light came on initially, but everything seemed fine, and the warning light was gone.


Anyhow, the light came back on today, and again the car was driving fine, but suddenly, at low speed in a residential area (thankfully not on a highway or busy road), the car basically went into neutral. I moved from neutral to D a few times, and it kicked back into 2nd or 3rd I believe. Out on a main road, it did this two more times, so obviously I'm going to keep it off the road for the time being, as I don't need to get stranded in N while in traffic.


Has anyone had this issue, and how serious is it..? Does it require major transmission rebuild / replacement or is there a simple fix for it? Sorry if this is a dumb question, I've just come up empty handed trying to figure out what's wrong, and I know I'll likely need to have a tech diagnose it and go from there.