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Shares in BMW tumbled as the German car manufacturer announced it will have to recall 1.5-million vehicles over a braking problem, costing it almost €1-billion.
The company said its annual earnings would be considerably lower than expected, with the fault in the braking system far more widespread than first thought.
‘Ongoing muted’ demand from China would also affect its profits, the company said, with margins expected to be about 6% rather than 10%. Its share price fell by about 11% to a four-year low on Tuesday.