The BMW Group is expecting a drop in deliveries this year and has lowered its profit forecast as it grapples with a braking system fault that affects more than 1.5 million cars worldwide.
As recently reported by Autocar, various BMW and Mini models are fitted with a potentially faulty integrated braking system (IBS), a component designed and supplied by Continental that determines the amount of feel and feedback provided through the brake pedal.
The problem was understood to have affected more than 80,000 BMW Group models earlier this year, prompting a recall which was then widened as “additional cases outside the original scope of the recall have been identified”, halting deliveries of the Mini Cooper and Countryman.
In affected models, built between June 2022 and now, defects in the anti-lock braking and stability control systems were found to potentially cause the power braking assistance to fail, meaning the driver could lose control of their car.
The BMW Group said all affected cars remain safe to drive while awaiting a fix, though, and it isn’t aware of any accident occurring globally in relation to the IBS.
The German firm has confirmed that more than 1.5 million cars worldwide – both those in customer hands and yet to be delivered – are fitted with the faulty parts that need to be replaced.
It wouldn’t give a number for the amount of cars affected in the UK but is working with the Driver and Vehicle Standards Agency (DVSA) on a repair programme. Any affected cars not yet delivered will be held by the company until the relevant components are replaced.
As a result of the IBS “technical action”, it expects a “slight decrease” in deliveries across all its brands compared with last year’s 2,555,341. It had earlier expected to improve slightly on that figure.
That reduced output, in conjunction with forecasted warranty costs in the “high three-digit million” region, means the BMW Group now expects a profit margin of 6-7%, down from 8-10% previously.
Shares in BMW dropped by 8% on the announcement, and Continental’s were down 9% on 10 September.
In a statement issued to Autocar, the company said: “In February 2024, the BMW Group issued a safety-related recall for the Integrated Braking System across a range of BMW models. The company has now extended this action to include more BMW and Mini models, as additional cases outside the original scope of the recall have been identified.
“Internal quality control revealed that in very rare cases, some vehicles could suffer from signal interference in the electronics of the brake system, which means more pressure than normal is needed on the brake pedal to slow the car down. It also affects other brake control functions like ABS and Dynamic Stability Control.