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BMW trimmed its profitability guidance for 2024 on Tuesday, pointing to technical problems that led to delivery stops for cars as well as persistently sluggish demand in the key market of China.
The German carmaker said it expects its margin of earnings before interest and taxes (EBIT) to be between 6% and 7% for 2024, having previously guided for a figure between 8% and 10%.
The company’s shares were down 5.3% at 1104 GMT following the announcement.
BMW said the downward revision was triggered partly by headwinds in its core automotive segment resulting from delivery stops and technical actions linked to the Integrated Braking System, which is provided by a supplier.
BMW also flagged ongoing muted demand in China affecting sales in the country, joining the group of automakers facing difficulties in the world’s second-biggest economy.
The company also forecasts a slight decrease in deliveries, it said, without providing a specific figure, after having previously expected an increase.
The technical actions related to the integrated braking systems impact over 1.5 million vehicles and will result in additional warranty costs in a high three-digit million amount in the third quarter, the company added.