2024-09-11 09:29:30
BMW is recalling about 1.5 million cars from the market due to a problem with the brakes. The company’s shares fell 8 percent after the announcement of the recall of the cars, Bloomberg reports.
The German company announced that deliveries this year will be lower than last year. The recall of 1.5 million cars is expected to have a negative effect on global sales.
The troubled braking system was supplied by Continental, whose shares also fell 6%. The company specified that a “small portion” of the defective parts will be replaced.
Last month, BMW recalled 1.4 million cars in China because of faulty airbags.
The company reported a drop in net profit in the second quarter due to the impact of weaker business in China and higher production costs.
Group net profit fell 8.6 percent to 2.7 billion euros ($2.9 billion) between April and June, amid a 0.7 percent drop in revenue to just under 37 billion euros.