BMW Recall and VW Job Threat Deepen German Industry Crisis
- Luxury-car maker finds faulty brakes in 1.5 million vehicles
- VW confirms plan to end three decades of German job guarantees
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German carmakers are sinking deeper into a crisis undermining the future of the country’s most important industry, with BMW AG warning that profits will get hit by a costly brake problem and Volkswagen AG scrapping job protections that workers have enjoyed for three decades.
BMW shares plunged after the company disclosed the spiraling cost of a recall affecting 1.5 million vehicles due to faults with their Continental AG braking systems. VW confirmed plans to end the employment guarantees in Germany, lamenting the nation’s loss of competitiveness.