BMW RECALLS 1.5 MILLION VEHICLES OVER BRAKE ISSUES

In a significant move, German automotive giant BMW has announced a global recall of over 1.5 million vehicles due to a potential fault with the integrated braking system (IBS). The recall affects models manufactured between 2021 and 2023, sparking concerns over safety and reliability.

The news has sent shockwaves through the industry, with BMW’s share price plummeting 8% and other German automakers, including Mercedes-Benz, Volkswagen, and Porsche Holding, experiencing a 4-5% decline. The recall is a blow to BMW, which has already faced weakened demand in China and a separate recall of 1.4 million vehicles in the country last month.

The company attributes the issue to a faulty electronic component supplied by Continental Group, which will be partially replaced. Continental’s shares have also taken a hit, falling 6%. The recall affects vehicles across BMW’s portfolio, including Rolls-Royce and Mini brands.

The announcement comes as BMW’s net profit fell 8.6% to 2.7 billion euros between April and June, with revenue dipping 0.7% to just under 37 billion euros. The recall is expected to further impact the company’s financial performance.