BMW has problems with supplied braking systems. As a result, many vehicles have to go to the workshops. This also has economic consequences for the car manufacturer.
Due to problems with the braking system, the Munich-based car manufacturer BMW is recalling 1.5 million vehicles worldwide and is therefore lowering its profit forecast for the current year. “Technical measures” are necessary on the cars in connection with an integrated braking system that comes from a supplier, the company announced on Tuesday. Earnings before taxes will therefore fall “significantly” this year.
BMW expects that the technical problems will lead to “negative sales effects worldwide in the second half of the year.” Additional costs “in the high three-digit million range” are to be expected in the third quarter.
China business drags BMW down
In addition, the continued subdued demand in China is having an impact on sales figures there, the car manufacturer continued. “Despite the government’s support measures, the reluctance to buy continues.”
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Both factors prompted BMW to revise its annual forecast for the 2024 financial year. Instead of a slight decline, earnings before taxes are now expected to “decline significantly,” the company said. In addition, BMW now expects a slight year-on-year decline in deliveries instead of a slight increase.
Motorcycle market also weakens
There is also a “tense market and competitive situation” for motorcycles, including in the USA and China. As a result, deliveries there are now “expected to be at the same level as last year” – BMW had previously expected a slight increase.
Source: Stern
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
