BMW has issued a recall announcement for around 1.5 million units in order to solve an issue with the braking system. The recall was issued on Tuesday. In addition to recalls, the company has also suspended the deliveries for 320,000 cars that have not yet been handed over to clients.
The company’s parts supplier Continental clarified that there might be a problem with the function of an electronic competent. The supplier also added that the braking performance will not drop below the legally required standards.
The German luxury carmaker has revealed that the recall has caused warranty costs in the high three-digit million euro rang in the current quarter.
The recall has also made an impact on the company’s shares. Moreover, the company has also stated that the recall will have a “negative worldwide sales effect in the second half of the year. It might even affect the Rolls-Royce and Mini brands.
Meanwhile, the company has witnessed a drop in demand for its vehicles in China after Volkswagen announced last week that it was mulling the unprecedented step of closing factories in Germany.