If I remember correctly the BMW issues were related to doorway pages being used, although I might be mistaken.
I see a lot of what we'd call blackhat by a number of large sites, but equally I see a huge number of big brand sites ranking highly with websites that seem to not practice white hat. I don't mean that they are doing anything wrong, more that they are not doing what could be classed as standard for good SEO i.e. on page content, h-tag structures, titles and so on.
What would be worth knowing, and I suspect might be harder to prove, is whether the said Australian site (and other brand sites) are ranking because of the stuffing they are doing or because of the huge number of back links they no doubt have. i.e. if they toned down the keyword stuffing, would they still rank highly anyway.
If this is the case, then perhaps the stuffing is being overlooked slightly.