---
title: "BMW's downward revision of the 2024 profit margin caused a flash crash in the stock price! European giants such as Volkswagen, Mercedes-Benz, and Porsche all suffered heavy losses in stock prices"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/213951066.md"
description: "BMW Group has lowered its profit margin forecast for 2024 to 6%-7%, down from the previous 8%-10%. Due to technical issues and weak demand in the Asian market, the stock price plummeted by over 8%, dragging down other European car brands such as Mercedes-Benz and Volkswagen by 4%-5%. BMW stated that the halt in delivery of integrated braking systems has affected over 1.5 million vehicles and is expected to increase warranty costs in the third quarter"
datetime: "2024-09-10T12:22:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/213951066.md)
  - [en](https://longbridge.com/en/news/213951066.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/213951066.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/213951066.md) | [繁體中文](https://longbridge.com/zh-HK/news/213951066.md)


# BMW's downward revision of the 2024 profit margin caused a flash crash in the stock price! European giants such as Volkswagen, Mercedes-Benz, and Porsche all suffered heavy losses in stock prices

According to the Zhitong Finance and Economics APP, German luxury car brand Bayerische Motoren Werke Aktiengesellschaft (BMW AG) lowered its profit margin forecast for 2024 on Tuesday, citing technical issues leading to production halts for some cars, as well as continued weak demand in key Asian markets. The German luxury car manufacturer stated in its latest announcement that it expects the Earnings Before Interest and Taxes (EBIT) margin for 2024 to be between 6% and 7%, compared to the previously announced range of 8% to 10%.

Following the announcement, the company's stock price in the European stock market plummeted by over 8%, dragging down the stock prices of other European automotive giants such as Mercedes-Benz, Volkswagen, Stellantis, Porsche, and Renault by approximately 4% to 5%.

It is understood that BMW mentioned in the latest announcement that part of the reason for the lowered profit margin forecast is due to headwinds in its core automotive segment, citing delivery stoppages related to integrated braking systems provided by German company Continental AG and other technical issues. The integrated braking system is supplied by Continental AG.

In a statement, Continental AG mentioned that due to potential damage to some electronic components, only "a small portion" of the braking systems supplied to BMW will be partially replaced.

Furthermore, BMW stated in the announcement that the persistently weak demand in key Asian markets, including China, has impacted the group's overall sales. BMW also predicted a slight decrease in deliveries without providing specific numbers or delivery ranges, whereas it had previously expected an increase in deliveries.

BMW also added that the technical issues related to the integrated braking system have affected over 1.5 million vehicles of the brand, leading to additional high warranty costs in the third quarter

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