Overview

• BMW has sued Continental seeking reimbursement for recall costs tied to the MK C2 brake system defect.
• Continental’s countersuit requests a court declaration that its liability for the faulty brakes is unfounded.
• The dispute stems from a March 2024 defect that triggered a recall of more than 1.5 million BMW vehicles and delayed new-car deliveries.
• BMW’s recall expenses in Q3 2024 topped high three-digit millions of euros, while Continental maintains a mid-double-digit million-euro provision unchanged since the defect emerged.
• Both parties, despite initiating legal action, have signaled a continued willingness to negotiate a resolution.