BMW is facing a crisis on two fronts. The automaker has announced a recall of about 1.5 million vehicles due to problems with the braking system. The decision is followed by a reduction in the financial outlook for the current year.
BMW announced on Tuesday that it will recall approximately 1.5 million vehicles due to brake problems, AFP notes. The braking system at the origin of the problems was supplied by Continental, a source close to the matter told AFP.
The withdrawal will have a “negative effect on worldwide sales in the second half of the year”, said the group, which also includes the Rolls-Royce and Mini brands.
BMW shares fell sharply
The situation is compounded by external factors such as weak demand in China despite government incentives in this market. BMW also faces ever-increasing production costs, which puts additional pressure on the company’s profitability.
In 2023, deliveries of BMW, Rolls-Royce and Mini vehicles totaled 2.56 million.
The automaker also lowered its forecasts. The estimated profit margin has been revised down from 8-10% to just 6-7%.
The negative news had an immediate impact on the capital market. BMW shares fell a steep 9% on the Frankfurt Stock Exchange.
Source: www.descopera.ro
