Ivan Radic
Based on the company's official statement, over 1.5 million vehicles are impacted by the IBS issues. The company will incur a significant financial loss in the third quarter due to vehicle recalls and delayed deliveries, totaling a "high triple-digit charge."
Continental is the BMW supplier at issue. The company had previously stated that defective electronics in the IBS system could lead to the deterioration of the braking system. BMW and Continental both maintain that the vehicles are safe to use.
The German automaker is being pushed to lower its annual forecasts further due to declining demand in China. The press release stated that, despite efforts by the Chinese government to provide stimulus, consumer demand in the country is still low.
BMW is now predicting that its annual forecasts will be a bit lower than the previous year. The company had earlier predicted a small rise in sales.
The company revised its EBIT margin outlook for the automotive segment this year to 6-7% from 8-10%.
source: ft.com
Continental is the BMW supplier at issue. The company had previously stated that defective electronics in the IBS system could lead to the deterioration of the braking system. BMW and Continental both maintain that the vehicles are safe to use.
The German automaker is being pushed to lower its annual forecasts further due to declining demand in China. The press release stated that, despite efforts by the Chinese government to provide stimulus, consumer demand in the country is still low.
BMW is now predicting that its annual forecasts will be a bit lower than the previous year. The company had earlier predicted a small rise in sales.
The company revised its EBIT margin outlook for the automotive segment this year to 6-7% from 8-10%.
source: ft.com
