I found that after washing my R53, the hatch switch stopped working. I initially thought that it was the upper switch (push button side) so I took it all apart and found that everything was dry and looking good. Upon closer investigation, I found that there is also a micro switch on the latch side that tells the car that the hatch is closed and may need to be opened at some point. That switch is where the water and problem was. I removed the rear panel to disassemble and dry the connections/switch but if anyone else has this problem, a spray of brake clean or electrical contact cleaner into the right side of the latch should displace the water and get you going again! Hope this helps at least one person...happy Mini'ing!

On a side note, I'm down in Palm Springs for a couple of weeks and will be hanging out on the Pines to Palms in the mornings (going to the lookout and back) I'll also be over at Mt Palomar a couple times....If any Socal members are feeling saucy, shoot me a message...maybe we can coordinate a spirited drive!!

Mods, I posted this in the mods section as well...feel free to gas the one that isn't in an appropriate spot! (sorry)
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Where is this micro switch? What does it look like? I can't find what you're talking about.

 

If you close the latch with a screw driver and look into the right hand side of the case that it sits in, you'll see it there. I'm almost sure that if you just spray brake clean into the right side it will clean/dry it enough to get you up and running again.