The world-renowned car company will recall 1.5 million vehicles.

The Munich-based car manufacturer BMW Group has made adjustments to its expectations for the fiscal year 2024. In this context, the company announced that 1.5 million vehicles will be affected and recalled due to problems with the braking system, which will also lead to an increase in warranty costs. Following the announcement, BMW's shares fell by more than 11%.

WEAK CONSUMER DEMAND

BMW also reported that its sales have been affected by the stagnation of demand in China and weak consumer demand.

CLOSING THE FACTORY FOR THE FIRST TIME IN HISTORY

BMW's problems come at a time when warnings about the crisis at Volkswagen, Germany's largest economy, and the risk of deindustrialization in the country are increasing. German car manufacturer Volkswagen is considering closing its factories in Germany for the first time in its history as part of cost-saving measures, and the company confirmed that the 30-year employment protection agreement will be terminated early.