BMW has been going through a tough time this year due to major recalls. 1.5 million BMW and Mini vehicles were recalled due to a fault in the brake systems manufactured by Continental. The massive recall has also significantly reduced the company’s delivery and profit forecasts.

BMW slashes profit forecast after recalling 1.5 million vehicles

BMW, which revised its expectations for 2024, had to lower its year-end delivery and profitability targets. So what happened that so many vehicles were recalled? In fact, the source of the problem is a fault in the ABS and stability control system. Because it can cause problems with power-assisted braking while driving and make it difficult for drivers to control the vehicle.

Fortunately, the company said that no accidents have been reported worldwide due to this issue. While the vehicles are safe to drive, it advised drivers to be careful until they are fixed. As a result, BMW is now expecting to close annual delivery figures with a decline, after previously forecasting a slight increase.

The company, which delivered 2,555,341 vehicles last year , will fall slightly short of that figure this year. In addition, BMW’s profit margin has fallen to between 6% and 7% due to additional warranty costs from the recall , down from earlier estimates of 8% to 10%.

The decrease in demand in the Chinese market and the increasing competition in the global market are also making it even more difficult for BMW to overcome this difficult year. With these developments, BMW will have difficulty in achieving the expected performance in the motorcycle department.

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