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VW’s massive $170m recall bill

Posted on: July 8, 2013 by Platinum Direct

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Volkswagen Group Australia has announced a voluntary recall for 25,928 vehicles fitted with the 7 speed DSG gearbox. Vehicles affected include Golf, Jetta, Polo, Passat and Caddy and were produced between June 2008 and September 2011. This is because of the widespread publicity given to a malfunction inside the gearbox that may result in a power interruption.

Volkswagen Group says vehicles currently being produced and sold are not affected by this issue.

The Group will replace the gearbox Mechatronic unit on all potentially affected vehicles at no cost to the customer. At the same time, it will also update customers’ vehicles with the latest software version.

Owners of the affected vehicles are being contacted directly by Volkswagen Group Australia about the recall.

The invitation letters to schedule appointments for inspection and replacement of affected parts are being sent out in batches to the owners according to car model, production date and the supply of the necessary parts. The Group insists that owners can continue to drive their vehicles as usual before the replacement.

Industry insiders say this could cost the German company around $170 million. That figure is based on the fact that around 34,000 vehicles will be recalled and the expensive fix to the DSG transmission is probably around $5000 each. Additionally there will be the cost of the long-term harm to the image of what the VW Group had been promoting as a technically innovative and top quality German brand.

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