...September 13, 2024 This report does not constitute a rating action. MILAN (S&P Global Ratings) Sept. 13, 2024--S&P Global Ratings today updated our 2024-2025 base case scenario for Germany-based automaker BMW AG, following the announcement of 1.2 million vehicles already in the market with a potentially faulty braking systems supplied by Continental. The incident--which also affects some 300,000 vehicles in stock--will result in estimated provisions of only slightly below 1 billion in the third quarter of 2024, rising inventories, and cuts in production to offset the pressure on working capital. The company announced a resulting change in guidance for 2024, including automotive operating profit of 6%-7% (compared with 8%-10% previously), and an auto free cash flow above 4 billion in 2024 (down from 6 billion previous 2024 guidance) also reflects mounting concerns in China where government measures have failed to substantially relaunch consumer sentiment, reducing the hope of some improvement...
