VW Recall in China

Volkswagen is recalling over 384,000 vehicles in China (models include Golf, Polaris, Jetta and Magotan) after China Central Television criticized the direct shift gearbox transmission on the cars, claiming there was glitch causing the cars to speed up and slow down unexpectedly. The recall will cost the company $6 million in order to replace all the gearboxes, but not only that, they will most likely face further repercussions as far as potential lawsuits for personal injuries and wrongful deaths. Additionally, in 2009, Toyota received a $17.35 million fine for their recall due to faulty breaks. VW may be facing a similar sized fine from the Chinese government, if not higher. 

Perhaps the most damaging consequence of all is the company’s reputation. Consumers in all countries may lose confidence in the reliability and safety of the brand and may be disinclined to purchase the vehicles in the future. Toyota is still suffering the consequences of their recall back in 2009 so there’s no telling how severely VW will be affected by this.   

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