Faulty Brakes Force Volkswagen Recall of 385,000 German Cars
German authorities have ordered a recall of 385,000 Volkswagen, Audi and Skoda cars to fix a software problem with the cars' braking systems that could cause the brakes to function improperly in some conditions.
German automaker Volkswagen has been hit with a recall of 385,000 cars sold in Germany, according to a report at news agency DPA. The company’s VW, Audi and Skoda brands are affected by the recall.
The braking control system on the vehicles may not function properly under certain conditions, such as when a driver oversteers, understeers or slams the brakes. The recall requires a software update to the antilock brake system, according to DPA.
While a serious issue, VW faces an even larger problem in its home country. Earlier last week Germany’s transport ministry put pressure on automakers to update the engine management software in 12 million diesel cars currently on the country’s roads.
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Not all those cars were manufactured by VW, and the total cost to patch the software is estimated to cost $1.7 billion to $2.8 billion.
VW was hammered in September of 2015 for using a diesel emissions program that was designed to report a lower emissions score during tests than its cars actually produced when operating normally. That cheating scandal has already cost the company billions.
The latest push by German authorities is likely tied to upcoming elections in September. The government wants the carmakers to bear the cost of updating the emissions systems in the diesel-powered fleet in an effort to cut nitrogen oxide pollution by 25%.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
