Volkswagen's Faulty Gearbox Recall in Australia Will Cost It Around $170 Million

It won’t be cheap for Volkswagen to recall nearly 34,000 cars over safety fears, with Fairfax Media reporting the bill will run as high as $170 million.

Yesterday morning it looked like the recall was only for Volkswagen-badged cars like Golfs, but now its been extended to its sister brands Skoda and Audi.

All three brands have models — such as the A1 and A3 and the Octavia — that could suffer from the same direct-shift gearbox problem, which has the potential to cause rapid deceleration.

Volkswagen has been criticised for waiting so long to start the recall. A marketing expert told Fairfax the car maker would be a good example of what not to do.

“We will definitely use this as a case study for how not to do it,” said Paul Harrison, senior lecturer in branding and marketing at Deakin University, according to to Fairfax.

Now read: Volkswagen Is Going To Recall 26,000 Vehicles In Australia After Safety Fears

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