540 Automatic Transmission Slipping

[Daves540i]

Hi-

I have a 94, 540i that is in very good condition (rebuilt engine at 94k, now has 107k). However, when I start the car in cold weather, the transmission clutches slip (car does not move at first) until I warm up the car for about 5-10 minutes minimum. I took the car to a reputable BMW mechanic and he suggested to try changing the transmission fluid. I did that, but the problem still persisted. I decided to just warm up the car and deal with the problem. However, it seems to be getting progressively worse. Today, even though it was not really cold, the car would not move after pressing the gas. Also, I put the car in neutral, and it was in reverse. The mechanic has suggested that I rebuild the transmission for about $2500 parts and labor which is about half of a rebuilt or new one that the dealer quoted me.

My question? (1) Is this my only option? It seems pretty likely that the transmission needs some serious work (2) Does this seem reasonable for a car that otherwise is in pretty good shape?

Any insight would be helpful.

Thanks,

Dave-

[B&V info]

I am currently dealing w/ a similiar issue.Was your filter changed w/ fluid? The valve body on that trans. has problems,but it may have done other damage.I think $2500(p&l) is very reasonable considering fluid alone is approx. $300.
Good luck.

[only bmw's for me]

Good luck you have the german made transmission. Even they go bad, the dealer only replaces them, if your lucky rebuilt $4k new $6k no joke...Bill.