319 BMW Group Report 2024 To Our Stakeholders Combined Management Report Group Financial Statements Responsibility Statement and Auditor’s Report Remuneration Report Other Information Notes to the Group Financial Statements OTHER DISCLOSURES 39 Contingent liabilities and other financial commitments Contingent liabilities The following contingent liabilities existed at the balance sheet date: in € million 31.12.2024 31.12.2023 Taxes and customs duties1 1,701 1,707 Litigation 299 80 Investment subsidies 55 66 Guarantees 52 22 Other1 - 182 Contingent liabilities 2,107 1,8932 1 Presentation adjusted compared to previous year. 2 Prior year figures adjusted. In the previous year, other contingent liabilities mainly included obligations for irrevocable loan commitments. In the financial year 2024, these amounts are reported in the following table as other financial commitments. The BMW Group determines its best estimate of contingent lia- bilities on the basis of the information available at the date of preparation of the Group Financial Statements. This assessment may change over time and is adjusted regularly on the basis of new information and circumstances. A part of the risks is covered by insurance. Since March 2019, the Chinese State Administration for Market Regulation is conducting an antitrust proceeding against BMW AG. In July 2024, the Brazilian antitrust authority launched an antitrust proceeding against BMW AG and provided its prelimi- nary statement of objections. The investigations each relate to largely the same facts which were the subject of a proceeding which was concluded by the European Commission in 2021 (see ↗ note [10] to the BMW Group Financial Statements for the finan- cial year 2021 included in the BMW Group Report 2021). Possible risks for the BMW Group in connection with the antitrust proceedings in China and Brazil cannot be currently foreseen, neither in terms of their outcome nor the amounts involved. In relation to these allegations two individual customers’ lawsuits have been pending in South Korea since June 2018. In addition, claimants in a group litigation in England and Wales have brought damages claims based on the European Commission’s decision. Further civil lawsuits based on the allegations are pos- sible going forward. Further disclosures pursuant to IAS 37.86 cannot be provided at present. Beginning in 2014, regulatory authorities have ordered the BMW Group to recall various vehicle models in conjunction with airbags supplied by the Takata group of companies. Provision for the costs involved has been recognised within warranty provisions. In addition to the risks already covered by warranty provisions, it cannot be ruled out that further vehicles of the BMW Group will be affected by future recall actions. Further disclosures pursuant to IAS 37.86 cannot be provided at present. In May 2023, the National Highway Traffic Safety Administration (NHTSA), an agency of the US federal government, requested a recall of airbags in the USA that are equipped with airbag inflat- ors produced by ARC Automotive. In the second half of 2024, the NHTSA announced that it will continue its investigation before deciding how to proceed and whether to issue a final decision. Implications thereof for the BMW Group as well as implications from class action lawsuits, which have been brought in this con- text against the BMW Group in the USA and Canada, cannot be estimated at present. Further disclosures pursuant to IAS 37.86 cannot be provided at present. In March 2022, the European Commission (EC) conducted in- spections at the premises of automobile manufacturers and as- sociations located in several member states. In parallel, the EC sent out formal requests for information to several automobile manufacturers, including BMW AG. The inspections and requests for information concern possible collusion in relation to the collection, treatment and recovery of end-of-life vehicles and light commercial vehicles. The inspections were conducted in co- ordination with the UK Competition and Markets Authority, which has initiated formal proceedings in respect of the UK market. The competition authorities allege that car manufacturers (i) coordi- nated the remuneration to be paid to dismantlers for the provi- sion of their services and (ii) agreed that issues related to end- of-life vehicles should be dealt with in a non-competitive way. Appropriate risk provisions were recognised in the second quar- ter 2022 in connection with these investigations. At the current stage of the investigations, further risks for the BMW Group in connection with the proceedings of the two authorities cannot be quantified at present. In December 2023, the South Korean anti- trust authority conducted an inspection at the premises of sev- eral car manufacturers, including BMW Korea and opened formal proceedings in March 2024. In June 2024, the Chinese Antitrust Authority (SAMR) sent BMW AG a request for information, which was answered within the set deadline. The investigation by the South Korean antitrust authority and the request for information by the Chinese Antitrust Authority have the same background as the investigations of the European Commission and the UK Com- petition and Markets Authority. Due to the relatively early stage of these investigations, it is also not possible to provide further information in this regard. Further disclosures pursuant to IAS 37.86 cannot be provided at present. Following a request for legal assistance from the Korean author- ities in 2020 in connection with leaks in exhaust gas recirculation modules in BMW Group vehicles, the Munich public prosecutor’s office initiated an investigation and searched BMW Group offices in Munich and Steyr in June 2022. The proceedings were finally concluded in March 2024 and BMW Group agreed to pay a fine. To the extent that aspects of this matter are under review by au- thorities, the BMW Group continues to cooperate. Potential risks for the BMW Group cannot be quantified at the present time.