BMW Recalls Over 136,000 Cars For Potential Fire Risk

Prevention is always better than the cure.

The latest recall statement issued by the National Highway Traffic Safety Administration says BMW will be issuing a recall on a total of 154,472 units. Of these, 136,188 are on US soil with the remainder across the border in Canada. When recalls are issued and the releases contain the words "fuel" and "leak" and "hot" then it's best to get things sorted out ASAP because when those things combine the results can be rather undesirable. That's quite a few cars that could end up in flames.

Luckily there have been no reports of injury or death from this problem but it's always best to have these things fixed before one pops up. The recall pertains to wiring for the fuel pump that have been improperly crimped. These can become a loose connection and that improper contact can cause the connector to melt, and in turn a fuel leak. If the offending wires melt off and the fuel pump loses power, that can result in the car stalling, and depending on where you are on the road when that happens, things can go very wrong, very fast. BMW has jumped on the issue and the recall is set to kick off on December 5.

Under the recall, affected BMWs will need to spend a few hours in the workshop and the fuel pump module will be replaced at BMW's cost. The recall is for quite a few models produced between 2007 and 2012, these include a bunch of X5s, X6s, and 5 and 6 Series models. We wonder if the issue behind the recall has anything to do with an outbreak of fires that claimed multiple BMWs in South Korea not long ago.

Potential Porsche Stock Exchange Listing Could Be Worth Billions

VW’s premium brands could eclipse Ferrari three times over.

The VW Group is one of the largest in the automotive world, with products spanning everything from motorcycles to heavy-duty trucks. With such a diverse portfolio all bundled into one, potential investors are unable to cherry pick their preferred stocks and have to invest in the group as a whole.

Finance Chief Lutz Meschke made a statement at Porsche’s development center this past week where he outlined the benefits of listing VW’s premium brands as a separate entity on the stock exchange. The premium brands he was referring to in his speech included Porsche, Bentley, Bugatti and Lamborghini.

“We would likely be viewed as a luxury goods manufacturer and the multiples are completely different compared with a normal premium brand,” Meschke told reporters. Analyst firm Evercore ISI estimated the VW Groups combined worth to be in the region of $170 billion, twice its current market capitalization, of which Porsche could make up more than half that amount if it were listed.

The Porsche Group was listed on its own before merging with the VW Group in 2009 and Evercore mentioned that, "from a governance, growth and profitability perspective, more autonomy and accountability would make the VW Group a better business. Separately listed legal entities would also provide VW with more flexibility."

Essentially, separating the different brands into more logical segments would be a beneficial move for the whole group. Meschke said that he had addressed the issue of the stock listing with company executives at VW Group headquarters and with the Porsche and Piech families that own a majority of the voting shares in the automaker.

Ferrari went public in 2016 and it had a knock-on effect for the Fiat Chrysler Group too with values of both organizations rising. While nothing concrete has been announced yet, a partial listing of the VW luxury brands may well be in the cards in the near future.