Recalls follow one another at the German manufacturer which must once again carry out a large-scale recall in China.
BMW once again finds itself facing a major vehicle recall, this time in China, with nearly 700,000 cars affected by a fault in the cooling pump.
This recall comes as the German manufacturer’s sales are in free fall in its largest market. It is obvious that this recall will not help it get back on track, BMW must restore its image.
The cooling pump is a problem
The German car manufacturer BMW is going through a new storm, this time in the Chinese market. Last Friday, the State Administration for Market Regulation of China announced a major recall of nearly 700,000 vehicles due to a technical problem with the cooling pump. A hard blow for BMW, which is already struggling to maintain its position in this market. The recall, which will begin March 1, 2025, concerns two categories of vehicles: 499,539 cars produced locally and 188,371 imported models. Affected models include the China-made BMW 3 Series and 5 Series, as well as several crossovers imported from elsewhere. The reason? Defective coolant pump caps, which can rust and cause short circuits. In the most extreme cases, it could even lead to fires.
For affected owners, this news is obviously a source of concern, although BMW tries to reassure by indicating that repairs should only take three hours. But why wait until March 2025 to start the recall? The manufacturer has not given a clear answer on this point. This recall in China comes at a particularly delicate time for BMW. Last month, the manufacturer had already announced a global recall of 1.5 million vehicles due to defects in braking systems supplied by Continental. The cost of this large-scale operation is estimated at nearly one billion euros, which puts considerable pressure on the group’s finances. Although the braking defect does not affect vehicles in Europe, it nevertheless forced BMW to revise its profit forecast for the current year. These repeated technical incidents are beginning to tarnish the manufacturer’s image of reliability, an aspect that is nevertheless essential to maintaining consumer confidence.
A context of falling sales in China
This series of recalls aggravates an already difficult situation for BMW in China, its most important market in terms of turnover. In the third quarter of this year, sales of BMW and Mini brands in China fell by 30%the biggest drop in more than four years. This figure illustrates the difficulties faced by the company in maintaining its pace of growth in a market where competition is fierce and where local manufacturers, particularly in the field of electric vehicles, are gaining strength. The reasons are multiple. First, and as mentioned previously, there is competition from Chinese brands. Brands like BYD or NIO are increasingly capturing the attention of local consumers, with offers often more adapted to market expectations in terms of price and technology.
Second, it seems that technical problems have tarnished BMW’s reputation among Chinese consumers. Successive recalls, and more particularly that of September linked to braking systems, have contributed to this drop in demand. Chinese people have become more reluctant to buy BMWs, fearing hidden defects or costly future repairs. BMW must therefore react quickly to regain consumer confidence.
China represents a key market for all automakers, and the loss of market share could have significant consequences on the company’s financial health.
To get back on track, BMW will not only have to resolve these technical problems, but also offer attractive innovations, particularly in the field of electrification, to remain competitive. In addition, BMW’s approach to after-sales service will be decisive. How the company handles this recall, both in terms of communication and timeliness, could determine how it is perceived in the future. Exemplary management of the crisis could mitigate the negative impact on its image and help regain consumer confidence.
Source: www.autoplus.fr
