The German car manufacturer BMW is issuing a profit warning after being forced to recall 1.5 million vehicles due to a brake fault. The fault has, according to the company, occurred at a subcontractor.
Tire manufacturer Continental has announced that the fault occurred with them, but that the cars are still safe to drive.
BMW now expects a significantly lower profit than what was calculated a year ago. The company is counting on an operating margin of 6 percent, compared to 8 to 10 percent according to earlier prognosis.
The brake fault is another setback for BMW, which has also been affected by a cooling demand for new cars in general. According to the company, a weak demand from China is also contributing to the revised prognosis.
The share is falling by around 7 percent after the announcement.
