A recall in China of more than 384,000 Volkswagen Group vehicles could cost the German manufacturer over $600 million, according to overseas reports.
Industry journal Automotive News Europe reports the 384,181 Volkswagen Group vehicles were recalled to repair defective gearboxes following reports of abnormal vibrations, loss of power and sudden acceleration in vehicles fitted with Volkswagen’s dual-clutch (DSG) automatic transmissions.
In an email statement, Volkswagen Group said it was recalling vehicles with its seven-speed DSG transmission and would bear the costs of replacing defective equipment and upgrading relevant software.
According to China's state quality inspector’s website, the 21 affected vehicle types include the Volkswagen Golf, Scirocco, Bora, Touran, Passat, Magotan and Sagitar, the Audi A3 and the Skoda Octavia, with the impact spanning models built between 2008 and this month.
While Volkswagen has not commented on the potential financial cost of the recall, research firm LMC Automotive told Automotive News Europe it estimates the replacements will cost the company between 3000 yuan ($463) to 10,000 yuan ($1544) per vehicle.
China is Volkswagen’s biggest market, with Volkswagen and its included brands selling 2.81 million vehicles there last year, an effort among foreign car makers that trails only General Motors.