The German carmaker has recalled over 1.5 million globally due to faults in the braking system. The news was confirmed by the brand itself on Tuesday.
The inspection recall has affected the company’s top arms which include Rolls-Royce and Mini brands. It has been reported that the recall might affect BMW”s sales in the second of the year.
Impact on profitability
Amid the unexpected outcome, the company has also trimmed its profitability margin by between six and seven per cent. This also impacts the deliveries of the new model this year.
Shares Drop
As soon as the news circulated over the internet, the brand witnessed a downfall in Frankfurt Stock Exchange by 9 percent. This comes at a time when the leading car manufacturer is struggling with the profit margin in China due to high manufacturing costs.
Statement By Brand
In a statement released by BMW, it said, “The ongoing muted demand in China is affecting sales volumes. Despite stimulus measures from the government, consumer sentiment remains weak.”
Previous Recall
Meanwhile, this is not the first the the premium car maker took the recall decision. Earlier, it has also recalled over 1.4 million models in China due to faulty airbags. The company then also announced the news about the same as well.
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