A slight decline in sales is now expected, the company announced on Tuesday. The Munich-based company had previously predicted a slight increase. The profit margin in the car business is now expected to be 6 to 7 percent, lower than the expected 8 to 10 percent.
BMW shares plummeted on the stock market and were the last in the DAX with a loss of more than 9 percent. Continental shares lost 8.5 percent.
Integrated braking system from Continental
Table of Contents
- 1 Integrated braking system from Continental
- 2 More power needed for braking
- 3 Here are some relevant PAA (People Also Ask) questions for the title **”BMW and Continental: A Tale of Braking Woes and Sales Decline”**:
- 4 Here are some related questions based on the title “BMW and Continental: A Tale of Braking Woes and Sales Decline”:
Table of Contents
The technical problem concerns Continental’s Integrated Braking System (IBS), which may not be working properly and therefore needs to be checked. According to BMW, more than 1.5 million cars are affected. Of these, around 1.2 million have been delivered to customers. In these cars, remotely installed diagnostic software can detect the error, which then has to be repaired in a workshop. Around 320,000 vehicles are still with the manufacturer and cannot be delivered for the time being. This will dampen sales in the second half of the year, BMW explained.
The company estimated the additional costs to be in the high three-digit million range. However, BMW is likely to demand compensation in order to be able to pass on at least part of the costs to Continental. It is unclear how high the additional costs for the Munich-based company will ultimately be. “We have set aside provisions in the mid-double-digit million euro range and assume that this will be sufficient for the warranty claim,” explained a Continental spokesman.
More power needed for braking
In individual cases, the brake booster may fail due to an electronic component being impaired, explained Conti. In this case, more force is needed to brake. “Based on the systems that have already been replaced and our current state of knowledge, we continue to assume that only a small proportion of the brake systems delivered actually need to be replaced,” said a spokesperson.
But it is not just the difficulties with the component that are causing problems for BMW. The Chinese market is also not growing as expected, the company explained. Despite government support measures, buyers are still reluctant to buy. Recently, other German car manufacturers such as Mercedes and Volkswagen have also felt the effects of the weakness in China.
ePaper
Here are some relevant PAA (People Also Ask) questions for the title **”BMW and Continental: A Tale of Braking Woes and Sales Decline”**:
BMW and Continental: A Tale of Braking Woes and Sales Decline
In a recent announcement, BMW revealed that its sales are expected to decline, contrary to its previous prediction of a slight increase. The Munich-based company attributed this downturn to various factors, including technical issues with Continental’s Integrated Braking System (IBS) and a sluggish Chinese market. As a result, BMW shares plummeted on the stock market, with a loss of over 9%, while Continental shares suffered an 8.5% decline.
The Technical Problem: Continental’s Integrated Braking System
At the heart of the issue is Continental’s IBS, which may not be functioning properly and requires inspection. According to BMW, over 1.5 million cars are affected, with 1.2 million already delivered to customers. The error can be detected through remotely installed diagnostic software, and the necessary repairs must be carried out in a workshop. Approximately 320,000 vehicles are still with the manufacturer and cannot be delivered until the issue is resolved. This will inevitably impact sales in the second half of the year.
The additional costs incurred by BMW are estimated to be in the high three-digit million range. While the company is likely to demand compensation from Continental, the final cost remains uncertain. Continental has set aside provisions in the mid-double-digit million euro range, which it believes will be sufficient for the warranty claim.
Braking Booster Failure: A Cause for Concern
In some cases, the brake booster may fail due to an impaired electronic component, necessitating more force to brake. Continental assured that only a small proportion of the brake systems delivered will need to be replaced, based on the systems that have already been replaced and their current state of knowledge.
The Chinese Market: A Weak Spot for BMW and Other German Carmakers
The Chinese market has not been growing as expected, further exacerbating BMW’s sales woes. Despite government support measures, buyers remain hesitant to make purchases. This weakness has also affected other German car manufacturers, such as Mercedes and Volkswagen.
BMW and Continental: A Partnership in Crisis
The collaboration between BMW and Continental has been put to the test by the IBS issue. While Continental is working to resolve the problem, the financial burden on BMW will likely be significant. The long-term impact on their partnership remains to be seen.
In related news, Continental is a prominent manufacturer of tires, including the [CONTINENTAL PREMIUMCONTACT 6 225/50 R18 99 W Renforcé (XL) BMW (*)][[3]], designed for BMW vehicles. Additionally, BMW offers various models, such as the [R 18 Transcontinental][[2]], which features advanced braking systems.
As the situation unfolds, both BMW and Continental will need to work together to restore customer confidence and rectify the technical issues plaguing their partnership.
References:
BMW and Continental: A Tale of Braking Woes and Sales Decline
The recent announcement by BMW has sent shockwaves through the automotive industry. The company has revealed that it expects a slight decline in sales, a reversal of its previous prediction of a slight increase. The profit margin in the car business is now expected to be 6 to 7 percent, lower than the expected 8 to 10 percent. This news has led to a significant drop in BMW shares, with Continental shares also taking a hit.
Integrated Braking System from Continental
At the heart of the problem is Continental’s Integrated Braking System (IBS), which may not be functioning properly and requires checking. According to BMW, over 1.5 million cars are affected, with around 1.2 million having been delivered to customers. In these cars, remotely installed diagnostic software can detect the error, which then needs to be repaired in a workshop. Around 320,000 vehicles are still with the manufacturer and cannot be delivered for the time being, which will dampen sales in the second half of the year.
More Power Needed for Braking
In individual cases, the brake booster may fail due to an electronic component being impaired, explained Conti. In this case, more force is needed to brake. However, Continental has stated that only a small proportion of the brake systems delivered actually need to be replaced.
Consequences for BMW and the Industry
The technical issue with Continental’s IBS is not the only problem affecting BMW. The Chinese market, a significant market for the company, is not growing as expected. Despite government support measures, buyers are still reluctant to purchase cars. Other German car manufacturers such as Mercedes and Volkswagen have also felt the effects of the weakness in China.
The additional costs to BMW are estimated to be in the high three-digit million range. BMW is likely to demand compensation from Continental to pass on at least part of the costs. Continental has set aside provisions in the mid-double-digit million euro range and assumes that this will be sufficient for the warranty claim.
Warranty and Protection Options
In light of this news, car owners may be concerned about the reliability of their vehicles. Fortunately, Continental Warranty offers affordable and convenient protection options. According to [1[1], Continental Warranty costs less per year than one single repair, providing peace of mind for car owners.
New BMW 5 Series and i5 Come with Continental Premium Tires
In other news, Continental has also announced that the new BMW 5 Series and i5 come equipped with SportContact 7 and other Continental premium tires [2[2]. This partnership highlights the importance of reliable and high-quality components in the automotive industry.
Customization Options for the R 18 Transcontinental
For motorcycle enthusiasts, BMW Motorrad offers the R 18 Transcontinental, which can be customized to meet individual needs [3[3].
the issues with Continental’s IBS have significant implications for BMW and the automotive industry as a whole.
