BMW Lowers 2024 Outlook Due to Braking System Recall and Weak Chinese Demand

The recall affects 1.53 million vehicles and has prompted BMW to cut its earnings and sales forecasts for the year.

BMW is recalling 1.53 million vehicles due to a faulty braking system identified during internal checks.
The recall affects models across BMW, Rolls-Royce, and MINI brands, including vehicles produced between June 2022 and August 2024.
BMW's financial outlook for 2024 has been reduced, with expected earnings and sales targets lowered due to recall costs and weak demand in China.
Continental AG, the supplier of the braking system, has developed diagnostic software to detect potential faults before they occur.
BMW shares dropped over 11% following the announcement.