BMW is lowering sales and earnings targets for the 2024 fiscal year, in a move the luxury German car maker said was partially triggered by hefty expenses of addressing a braking system recall that impacts more than 1.

FRANKFURT – BMW said on Sept 10 it was recalling about 1.5 million vehicles due to problems with their brakes and cut its outlook for 2024, sending the German luxury carmaker’s shares tumbling. The recall will have a “negative worldwide sales effect in the second half of (2024)”, said the group, which also includes the Rolls-Royce and Mini brands.

BMW AG has had to lower expectations for the year after a faulty braking system from supplier Continental AG prompted a recall and halt to deliveries of some 1.5 million vehicles.