BMW has announced a recall of 1.5 million vehicles due to a potential issue with the braking system. The recall affects models including the Mini Cooper, Countryman, X1, X2, X5, and Rolls-Royce Spectre.
The fault, discovered in the electronic braking support system, is not a safety issue but could affect the braking force required to stop the car. The system, manufactured by Continental, is used in vehicles produced since June 2022.
The recall will cost BMW an estimated €1 billion, impacting their annual earnings. This, coupled with weak demand from China, is expected to lower BMW’s profit margins from 10% to around 6%.
BMW shares fell by 11% following the announcement, marking a four-year low. This news adds to the challenges facing Germany’s car industry, as Volkswagen also considers factory closures.
Continental, the supplier of the faulty braking systems, estimates that only a small portion of its products will need to be replaced. The company’s shares fell by 9%.
While the recall is significant, BMW emphasises that the brakes remain functional, and there are no known incidents related to the issue.
Source: The Guardian