I had a very similar problem on my front bumper, except the peeling area was much wider - about a foot long, I'd guess. I went back and forth with the dealer about it for some time. They took pictures finally had to have a regional service guy come out to take a look at it. I guess he agreed that there was a defect and that the bumper needed a full respray, but also felt that I should be partially liable since there was some underside damage from scraping as well as stone chips. So he offered to have 1/3 covered by the region, 1/3 covered by the dealer, and 1/3 covered by me - $130, to be exact. I was annoyed that they basically admitted fault but didn't accept full liability, since regardless of any other damage, the bumper would have needed a full respray. But in the end I accepted the offer because I knew I wouldn't be able to get a good respray anywhere else for $130 (plus the BMW dealer contracts with the best body shop around). Anyway, maybe I could've fought it, but I frankly didn't feel like it as it took several months to even get that offer out of them. I got the car back last Friday and it looks great, so all's well that ends well I suppose. Plus they gave me a 535i loaner for the 8 days it took to do the job, so that's not bad. Good luck.