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After searching some E39 forums, found the following observations which I may summarize as follows:-


1.   The hand brake is a major let down for the E39. It is located in the rear brake drum which is not visible from outside.


2.   Consist of a quite narrow strip of shoe. As such, friction surface with the brake drum is rather narrow, thereby contributing to many complaints from owners that their handbrake tak makan.


3.   Over time, dirt and rubbish would also accumulate inside the shoe drum, rendering it even less effective.


4.   A lot of the overseas forumners have complained that their handbrake can't hold the car stationery while stopping at an incline.


5.   Some suggested to hold the handbrake and move the car for about 1 to 2 km to clean up the shoe drum. Did that, but found out it doesn't help my case at all.


6. So i sent to Optimum Automotive and they did a good and efficient job. Took out the 2 rear tyres and hand polish the shoe drum to remove the dirt and rubbish. Then they help to adjust my handbrake so that now at the 3rd or 4th clicks, the handbrake already 'makan' compare to pre-adjustment stage where I have to lift up to 8th or 9th clicks.


7.  Overall a very satisfactory service provided by them at very reasonable charges. Thanks to the person who recommended Optimum at another thread (sorry, can't remember who this bro lah).


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