Volkswagen Recalls 2.86 Million Vehicles Over Steering Bolt Corrosion Risk

Volkswagen Group confirmed Friday a global recall of 2.86 million vehicles over a steering bolt defect caused by corrosion. The recall affects Volkswagen Tiguan, Touran, Golf, and Caddy models built between September 2013 and July 2024, plus approximately 700,000 Audi Q3 vehicles produced between October 2017 and May 2024. Germany’s KBA transport authority said corrosion could cause the bolt to fracture, potentially leading to steering failure, though no incidents have been reported. Drivers can continue using affected vehicles while awaiting dealer appointments.

What triggered the recall

Quality control checks discovered corrosion in steering bolts on affected models, according to a Volkswagen spokesman. The corrosion stems from environmental conditions and prolonged exposure to road salt during years of operation. Germany’s KBA road traffic authority confirmed the bolt could fracture and damage the steering gearbox or cause complete loss of steering in some cases.

Which vehicles are affected

Volkswagen is recalling Tiguan, Touran, Golf, Golf Variant, and Caddy models built from September 2013 to July 2024. Audi Q3 vehicles produced from October 2017 to May 2024 are also included. Around 900,000 vehicles are in Germany, with 2.16 million Volkswagen models and 700,000 Audi models affected globally. Seat and Skoda models are also swept into the recall, with Seat recalling 224,000 Ateca and Tarraco models built between 2016 and 2026.

What owners need to do

Volkswagen said drivers can continue using affected vehicles until obtaining a dealer appointment. The defective bolt will be replaced with a corrosion-resistant version. The repair takes up to one hour at authorised workshops. No incidents or injuries have been reported to date, according to the KBA.

Stock impact and investor outlook

Volkswagen shares rose 1.27% to 71.72 euros on the recall announcement. Meyka rates the stock B with a hold recommendation, citing weak ROE and ROA scores offset by a low PE ratio of 6.88. The 12-month forecast stands at 81.59 euros, suggesting 13.7% upside, though the RSI at 37.96 signals oversold conditions. The recall adds cost pressure as Volkswagen grapples with dwindling sales and ongoing workforce reductions.

Final Thoughts

Volkswagen’s 2.86 million vehicle recall reflects quality control failures but poses limited immediate safety risk since no accidents have occurred. With Meyka grading the stock B and the 12-month target at 81.59 euros, the repair costs and reputational damage warrant caution despite the stock’s low valuation.

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