BMW is lowering sales and earnings targets for the 2024 fiscal year, attributing this change partially to significant costs associated with addressing a braking system recall that affects over 1.5 million vehicles globally. The Munich-based group acknowledged that the expenses related to the faulty integrated braking system are projected to reach a high three-digit million euro figure for the third quarter alone, marking a substantial financial impact for the luxury car manufacturer.
The company first detected the braking issue during an internal quality check, leading to an initial recall in February. However, since that time, a further wave of cases has emerged, extending the problem beyond the original recall's scope. As such, BMW now estimates that approximately 1.53 million vehicles across five countries are impacted. The model range affected includes several BMW X models, the 5 and 7 Series, and the Rolls-Royce Spectre.
In light of the halted deliveries of the vehicles that are currently affected, BMW anticipates experiencing significant drops in sales figures. The expected revenue loss is notably concerning, especially in key markets such as China, where about 370,000 vehicles are affected, as well as in the U.S. with around 270,000 vehicles impacted. The overall financial forecast for BMW's fiscal year now reflects this uncertain climate as they navigate through these challenges.
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