The reason for the lowered forecast was, on the one hand, additional burdens in the car business resulting from delivery bans and recalls in connection with an integrated braking system (IBS) built by a supplier. According to the Bloomberg news service, the supplier is the German competitor Continental. BMW itself did not provide any information on this. It only said that sales would be lower in the second half of the year because vehicles could not be delivered worldwide. In total, more than 1.5 million cars were affected. BMW put the additional costs at a high three-digit million amount.
In addition, the Chinese market is not growing as expected. Despite government support measures, people are still reluctant to buy, it was said.
BMW shares fell sharply in response to the news and were at one point more than 8 percent lower. The share price of supplier Continental also fell sharply. And the German car manufacturers Mercedes-Benz and Volkswagen were also unable to escape the downward trend on the stock market.
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