Due to problems with the brakes, BMW is recalling approximately 350,000 cars worldwide. In North America, about 198,000 cars are recalled. Nonetheless, BMW explains that the vehicles are still safe even though there are complications with the brakes. Mechanical braking could be used to stop the cars if problems with the brakes arise.
BMW’s brake recall is very similar to the brake recall of Toyota’s. But I believe the resulting effects are different for the two companies. Toyota has experienced quite an impact on its reputation. Their reputation loss due to the recent recalls with brakes and positioning of carpets has most likely resulted with decreased sales. BMW, on the other hand, will probably experience a temporary, insignificant impact. Consumers will continue to purchase their cars because of the luxury and prestige that BMW holds. Toyota, on the other hand, can be seen as a “weaker” brand and isn’t as strongly established as BMW. BMW, as the world’s leading premium automobile manufacturer, has already positioned and established itself well. Hence a brake recall that most automobile manufacturers experience won’t easily affect their reputation and sales. As a few weeks go by, this issue will be brushed off consumer’s minds.