The recall will cost BMW a lot of money - well over €500 million. This has forced the company to change its financial plans for the year. Instead of a small increase in sales, BMW now expects a slight decrease. The company also lowered its profit forecast.
These changes hit BMW's stock price hard. On Tuesday, the stock closed at $77.10, down 11.43% from the previous day's close of $87.05.
The recall isn't BMW's only problem right now. The company is also dealing with stop sale orders in some places, which will hurt its sales in the second half of 2023. On top of that, demand in China isn't as strong as BMW would like, and consumers in general aren't feeling very confident about buying cars.
BMW's motorcycle division, BMW Motorrad, is having a tough time too. It's facing stiff competition in important markets like the United States and China. This is hurting both the number of motorcycles sold and the prices BMW can charge for them. Because of these issues, BMW Motorrad now expects its sales to stay flat for the year instead of growing.
Source: Carscoops
