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It took German carmaker BMW more than two years to discover the extent of a brake system defect that is expected to cost the company around €1 billion ($1.1 billion) to fix.
Customers and dealers began filing complaints with the German automaker about the defective brakes in June 2022, according to a recall document seen by Bloomberg News.
But BMW only realized last month that up to 1.5 million cars may contain the defective part, supplied by auto parts maker Continental AG and promoted as a lighter, more efficient system.
A profit warning last week wiped €5 billion off BMW’s value, a disaster for the luxury carmaker known as a pioneer in driving technology.
BMW launched a comprehensive review of its braking system in October 2023, according to a recall document, which found interference with the electrical signals sent through the braking system. The company then issued its first recall of 80,000 vehicles in the United States in February of this year.
