The Munich-based car manufacturer BMW is facing massive braking problems, leading to the recall of 1.5 million cars. The issues are related to a purchased brake system, resulting in additional costs and a lowered forecast for sales and profit margin.
The reluctance to buy cars in China continues despite government support measures, causing BMW's stock price to fall by 5.7%. The recall and brake system problems have had a significant impact on BMW's financial performance, with the company expecting a slight decline in deliveries and a decrease in its pre-tax earnings.
The challenges in the Chinese market have also affected BMW's global sales, leading to a correction in the annual sales forecast. The company is now expecting a lower profit margin of 6-7% instead of the previously projected 8-10%.
This situation has raised concerns within the industry, with worries that other car manufacturers may also face similar problems. As a result, BMW's stock and the stocks of its suppliers have experienced a significant decline.
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