Munich, September 11, 2024, The Europe Today: BMW announced a sweeping recall of over 1.5 million vehicles on Tuesday, alongside a suspension of deliveries for 320,000 cars that have yet to reach customers. The issue stems from problems with the brake system, prompting the automaker to also lower its profit and sales forecasts for the remainder of the year.
The Munich-based manufacturer reported that the faulty brake systems, supplied by Continental, have led to significant warranty costs in the current quarter, estimated in the high three-digit million range. Although Continental confirmed that an electronic component within the integrated braking system requires replacement, the supplier emphasized that there is no risk of the braking performance falling below legally mandated safety standards.
The recall, combined with weaker demand in the Chinese market, has forced BMW to revise its financial outlook. The company now anticipates a slight decline in vehicle deliveries for 2024, reversing its previous forecast of a modest increase. The recall is expected to lead to negative global sales figures in the second half of the year.
BMW, which also includes luxury brands Rolls-Royce and Mini, will work closely with Continental to address the issue and ensure affected vehicles meet safety standards before resuming deliveries.
