]BMW delivered a gut punch to investors as they announced plans to revise their financial guidance due to a massive brake recall that impacts more than 1.5 million vehicles globally. In particular, the automaker said their will be “additional warranty costs in a high three-digit million amount in the third quarter.”
That suggests the company will take a hit well in excess of €500 ($550 / £421) million and BMW also noted stop sale orders will have a “negative worldwide sales effect in the second half of the year.” If that wasn’t bad enough, the automaker also mentioned “muted demand in China” as well as weak consumer sentiment.
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