Staggering bill of BMW brake blunder revealed

German carmaker BMW projects the cost of its ongoing global brake fault recall will run into the hundreds of millions of dollars, resulting in reduced earnings for the year.

As reported by CarExpert last month, BMW imposed a global stop-sale on most of its model lines due to a fault with the integrated brake system (IBS) supplied by Continental.

An IBS fault can result in drivers having to apply a higher brake pedal force than usual, while anti-lock braking and dynamic stability control systems can also deactivate.

Overnight, BMW announced more than 1.5 million vehicles were affected by the braking system fault globally, which the carmaker said will “result in additional warranty costs in a high three-digit million [Euros] amount” in its current-quarter finances.

100s of new car deals are available through CarExpert right now. Get the experts on your side and score a great deal. Browse now.

BMW subsequently lifted the stop-sale in Australia and announced the recall of 26,516 vehicles across its namesake, Mini, Alpina, and Rolls-Royce brands.

However, it’s understood the stop-sale still applies in other countries. BMW has softened its earnings before interest and taxes (EBIT) projection for the 2024 financial year to between six and seven per cent – down from between eight and 10 per cent.

The carmaker also said it expects global deliveries to drop compared to the 2,253,835 examples it shipped in 2023, having previously projected this figure would rise.

In Australia, the recall not only affects new BMWs waiting to be delivered to customers, but also vehicles which are already on the road.

BMW’s Australian recall notice told customers to action a Remote Software Update if their vehicle requested it.

It’s understood a further 7168 BMW-branded vehicles were recalled for the same fault in March.

MORE: Everything BMW MORE: BMW Australia starts delivering cars after weeks-long stop sale MORE: BMW stops deliveries: Thousands of cars stuck in showrooms