BMW will recall about 1.5m vehicles over problems with their brakes, wiping £3.7bn off the value of the German carmaker yesterday.
The company, which also makes Rolls-Royce and Mini, said the product recall will have a “negative worldwide sales effect in the second half of the year”.
Shares plunged by as much as 9.6% as it said it would take a “high three-digit million” euro hit to its finances in the three months to September as a result.
The luxury vehicle brand has already been grappling with weakening demand from China, which has afflicted the German car industry.
It reported an 8.6% fall in net profit during the second quarter to €2.7bn, with revenues down 0.7% to just under €37bn.
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