BMW AG is facing another hurdle as it announces the recall of almost 700,000 vehicles in China. This decision comes after safety concerns about faulty coolant pumps, adding to the challenges the German carmaker is currently experiencing.
The Recall Details
According to China’s State Administration for Market Regulation, BMW will recall 499,539 locally produced cars and 188,371 imported vehicles starting March 1, 2025. The issue stems from faulty coolant pump plugs, which can corrode or rust. This corrosion may lead to short circuits and, in severe cases, pose a fire risk.
Affected Models
The recall includes several popular models, such as:
- Locally-made 3 Series
- Locally-made 5 Series
- Various X Series SUVs that were imported
This safety concern is particularly troubling as it follows a significant drop in BMW’s sales in China, which is its largest market by revenue.
Sales Slump and Profit Warning
Recently, BMW reported a 30% drop in deliveries of BMW and Mini cars in China during the third quarter—the steepest decline in over four years. This slump has compounded the company’s challenges.
In September, BMW also issued a profit warning linked to another massive recall of 1.5 million cars worldwide due to issues with defective braking systems supplied by Continental AG. The expected cost to fix these braking issues is nearly €1 billion ($1.1 billion).
Investigation and Repairs
The coolant pump defect was identified in August, and BMW promptly notified Chinese authorities as part of its investigation. A spokesperson noted that the necessary repairs are expected to take around three hours. Fortunately, vehicles in Europe are not affected by this recall.
BMW confirmed that the upcoming recall will include some “newly added components” and has been approved by Chinese regulators. The company stated that all actions comply with national laws and regulations.
Conclusion
As BMW navigates these safety recalls and declining sales, the focus remains on ensuring customer safety and compliance with regulations. With the recall set to begin in March, affected vehicle owners should stay informed about the necessary repairs.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
