BMW braking system recall contributes to decision to cut back 2024 outlook

abcnews.go.com:

BMW is lowering sales and earnings targets for the 2024 fiscal year, in a move the luxury German car maker said was partially triggered by hefty expenses of addressing a braking system recall that impacts more than 1.5 million vehicles worldwide

NEW YORK — BMW is lowering sales and earnings targets for the 2024 fiscal year, in a move the luxury German car maker said was partially triggered by hefty expenses of addressing a braking system recall that impacts more than 1.5 million vehicles worldwide.

Munich-based BMW Group said Tuesday that actions related to addressing a faulty integrated braking system, made by a supplier for the company, would reach “a high three-digit million (euro) amount” for the third quarter. Halted deliveries for impacted vehicles not already in customer hands are also expected to negatively impact sales.

A spokesperson for BMW Group, which also owns Rolls-Royce and Mini brands, confirmed to The Associated Press via email that the company first identified the issue during an internal quality check. That prompted a safety recall in February, but since then additional cases have been identified “beyond the scope of the original recall.”

Now, BMW expects that some 1.53 million vehicles across five countries are affected — including about 370,000 in China, 270,000 in the U.S., 150,000 in Germany, 70,000 in Korea and 60,000 in France.

The affected vehicles were produced between June 2022 and August 2024, per BMW, and several models are covered. That includes select BMW X models (excluding X3 and X4), the 5 and 7 Series, Rolls-Royce Spectre, MINI Cooper and Countryman.

Of the 1.53 million affected cars, 1.2 million are already in customer hands — while about 320,000 remain with BMW or in dealer stock.