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Industryweek 13721 Volkswagen

VW Postpones German Recall as Regulatory Issues Persist

April 25, 2016
The Federal Motor Transport Authority is asking Volkswagen for more information on some issues, the company said.

Volkswagen said Monday it is postponing a recall of tens of thousands of vehicles to remove a device designed to cheat pollution tests, after failing to obtain regulatory approval for the repair.

"The recall for Passats was planned for the ninth calendar week and to date our vehicles are still undergoing checks at the Federal Motor Transport Authority (KBA)," a VW spokesman told AFP, referring to a VW car model. 

"The KBA is still not completely satisfied with some measures and requiring new information," said a spokesman, adding that it was hoping that the recall approval could come "in coming weeks". 

VW has so far also failed to obtain an approval for the recall of its popular Golf models. 

Volkswagen was forced to recall vehicles around the world after it admitted it had installed so-called "defeat devices" aimed at cheating emissions tests into 11 million diesel engines worldwide.

In Europe alone, some 8.5 million vehicles are to due to be sent back to workshops.

VW has set aside 16.2 billion euros ($18.2 billion) to meet the heavy cost of repairs, as well as of regulatory fines and lawsuits, sinking it into a bottom-line loss of 1.582 billion euros in 2015, its first loss since 1993.

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