BMW shares fall to four-year low as recall of 1.5m cars announced

Mini and Rolls-Royce models also affected by potential braking system fault set to cost BMW almost 1bn

Shares in BMW tumbled as the carmaker revealed it will have to recall 1.5m vehicles over a braking problem, costing it almost 1bn (0.84bn).

The German manufacturer said its annual earnings would be considerably lower than expected, with the fault in the braking system now discovered to be far more widespread than initially thought.