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Means your car qualifies as a lemon but instead of going through the Lemon process you trade your car for a new one, with BMW paying part of the difference of the value of your car and the new one. Sometimes it might be an equal trade. Seems to happen to quite a few of the people waiting > 30days for their 335i fuel pump.
BMW can sell your old car without it being labeled as a lemon.
Happened once to me on my wifes minivan.
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2007 335I, " Gray", Black Leather, Step, Comfort, ZCW, ZPP, ED - Oct 5, Dropoff Oct 9, redelivery Nov 15.
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