Frankfurt | German carmakers are sinking deeper into a crisis undermining the future of the country’s most important industry, with BMW warning that profits will get hit by a costly brake problem and Volkswagen scrapping job protections that workers have enjoyed for three decades.

BMW shares plunged after the company disclosed the spiralling cost of a recall affecting 1.5 million vehicles due to faults with their Continental braking systems. VW confirmed plans to end the employment guarantees in Germany, lamenting the nation’s loss of competitiveness.

Bloomberg