Deliveries falter

BMW recalls 1.5 million vehicles

(Bild: Associated Press)

The German car manufacturer BMW has to recall 1.5 million vehicles, as reported by the "Handelsblatt". The cars are said to have problems with a purchased brake system.

A slight decline in sales is now expected because vehicles could not be delivered worldwide, as the Bavarian company announced on Tuesday. BMW had previously predicted a slight increase.

Additional costs in the "high three-digit million range"
At six to seven percent, the important profit margin in the car business is likely to be lower than previously forecast at eight to ten percent. The company put the additional costs caused by the current problems at a "high three-digit million figure".

In addition, the Chinese market is not picking up as expected. Despite government support measures, the reluctance to buy continues.

Share price plummets
Reports of the recall were also felt on the stock market. BMW shares fell in the wake of the news and were down 5.7 percent at 73.22 euros.

VW is deep in the crisis
While BMW's profits are "only" likely to fall slightly, the German car manufacturer VW is already deep in crisis: the group recently announced a massive cost-cutting program. Plant closures and redundancies could follow. The reasons for this are - as with BMW - difficulties on the Chinese market, and the e-car offensive is weakening.