Yes it does. However, at least the way I have the folders in my USB stick, it does mess up the order of the songs. I have a problem with the iPod, it does not work since it needs the special BMW cable.
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2011- : BMW 116i (F20)
2009-11: BMW Z4 2.5si (E85)
2007-09: Mini Cooper S (R56)
2005-07: BMW 325ti (E46)
2004-05: BMW 318i (E36)
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