BMW experienced a staggering 84% drop in profit in the third quarter, with net earnings plummeting to €476 million from €2.9 billion a year earlier. This decline is attributed largely to decreased demand in China and the costly recall of 1.5 million vehicles due to faulty brakes. The ongoing struggles mirror wider industry challenges in Europe, where manufacturers like Volkswagen are also facing declining sales and profitability. BMW is adjusting its financial expectations due to these ongoing issues, including significant recall costs that have impacted recent quarterly results.