Actuallly this is a well known defect ...
http://www.m3forum.net/m3forum/showt...=faulty+mirror
The mirror is made by a third party supplier - sybesmas electronics or Magna-Donnelly (can't remember which - it's in the thread)
There's a contact detail in the thread above if you can't get BMW to cover it - they will instead apparently.
BMW should cover the damages done to the console also.