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Wow, given the info provided I say this is a defect as well. The leatherette on my 2002 325i last for 8 years and 65K+ miles and looked NEW when I sold it. Of course, my car was garaged and never exposed to temps below +15F. And I'm over 220 lbs.
The leather on my '13 X1 is still looking new after 48K+ miles and I'd think it would pale in comparison to the durability of leatherette.
This sucks that it didn't hold up better. How many miles on your ride?
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