Car industry in crisis BMW recalls 1.5 million vehicles
Now the next car manufacturer has been hit. BMW has to recall vehicles and also revise its profit target downwards.
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- BMW is revising its sales forecasts downwards due to problems with an external braking system and weakening sales in China.
- The profit margin in the automotive sector will now only be 6 to 7 percent instead of the expected 8 to 10 percent.
- More than 1.5 million vehicles are affected by delivery stops and recalls, leading to high costs and a significant fall in the share price.
The car manufacturer BMW has had to revise its sales forecasts downwards, as problems with an externally supplied braking system and weakening sales on the Chinese market are weighing on business development, as the "Handelsbaltt" writes.
BMW now expects a slight decline in sales, after previously forecasting a slight increase. The profit margin in the automotive sector is also expected to be lower, at only six to seven percent instead of the previously expected eight to ten percent.
Deliveries delayed worldwide
The reason for the lowered expectations is additional costs and loss of sales due to delivery stops and recalls related to a brake system manufactured by the supplier. Vehicles could not be delivered worldwide as a result, leading to lower sales in the second half of the year.
In total, more than 1.5 million vehicles are affected and the costs amount to a high three-digit million figure. In addition, the continuing reluctance to buy on the Chinese market, despite government support, is having a negative impact on business results. Models such as the BMW 5 Series, 7 Series, X5 and X6 are particularly affected.
Following this announcement, BMW's share price fell by 6.85 percent.