While taking apart the E36 M3 rear end I picked up I made what can only be described as a major rookie mistake and whacked one of the axles with the axle nut partially threaded on (I don't know why I did this) while in the back of my head knowing the axle was not going to remove that easily. This naturally messed up the threads to the point where removing the axle nut was a problem.

After removing the damaged axle nut and the axle from the wheel hub (with a 12 ton gear puller) I assessed the damage and cam up with a plan. The two common axle nut sizes for BMW axle shafts are M24x1.5 or M27x1.5mm. Seeing as these are M3 axles they use the large axle nut.

I ordered a rethreader die and was able to successfully fix the damaged threads to the point where a new axle nut threads nicely. There are limits here of course as to how much damage you can fix and still get the axle nut to hold torque. However, a majority of the threads damaged are not under torque load when the axle nut is torqued to 300Nm. This should be a successful repair and we'll know that for sure when the car goes back together in a few months time.

Here is the special die I used to fix the threads:
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