German Transport Authorities to Ask VW to Recall 2.4 million Vehicles

Recalls are usually voluntary, and are conducted by automakers once they detect a fault or a potential fault in one of their vehicles. The Volkswagen emissions scandal, though, has been rather different. Even after the crisis broke, VW was very careful to talk about the possible cars affected - never once issuing a recall to fix the problem. There is a dilemma for Volkswagen after all - fixing the problem isn't simply replacing a faulty part in this case; it would mean a big overhaul. So as the company grapples with the technology aspect of doing that (let alone the cost), Germany's Federal Motor Transport Authority KBA has asked it to recall 2.4 million cars immediately, as reported by AFP. And yes, this is indeed to fix the problem with the diesel engines not meeting emissions standards. The KBA had previously rejected VW's offer to repair the 11 million cars it believed were affected, saying that the company's proposal was insufficient.

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Now the KBA has pretty much asked VW to remove the 'defeat device' software that helped control emission test results, and replace either the software or engine management system that allows the cars to meet the actual emission norms. The KBA has demanded VW fix the cars equipped with the 2-litre diesel engine immediately, and has allowed time for the company to respond on the 1.2- and 1.4-litre engines that may also be in need of some changes. Volkswagen has to get back with a plan for those engines by November. It has set aside $7.4 billion to meet the costs this salvage could take up - though analysts in Germany believe that number will end up being much higher.

Also Read: Volkswagen to Start Recalling Vehicles Affected by Scandal in 2016

The essential point to consider here though is that VW remains on the defensive - look at the big recalls we have seen in the recent past. There was a stark difference in Toyota's approach on the accelerator or airbag defect related recalls; and how GM went about addressing the ignition issues on its cars. VW seems to have taken a leaf from the GM playbook, and has now been compelled to recall vehicles by a government authority, rather than issue its own response to the problem. Many are now waiting to see if this has a ripple effect with other countries like France, Spain and Czech Republic - as well as the USA and Canada - also issuing similar orders. Motoring authorities in these countries have also been demanding answers and investigations on VW cars in their region. It looks like a long cold winter ahead for the Wolfsburg-based company.

(With inputs from AFP)