Volkswagen Group announced a sweeping global recall of approximately 2.86 million vehicles on September 25 due to a corrosion and fracture risk in a steering system retaining bolt, marking one of the automaker’s largest recall actions in recent years.
The defect affects multiple models across Volkswagen and Audi brands. Volkswagen-branded vehicles account for 2.16 million units, including the Golf, Tiguan, Touran, and Caddy produced between September 2013 and July 2024. Audi’s Q3 models make up approximately 697,000 units built between October 2017 and May 2024. Roughly 960,000 affected vehicles are in Germany alone.
According to Germany’s Federal Motor Transport Authority (KBA), prolonged exposure to road de-icing salt and certain environmental conditions can cause the bolt—which secures steering system components—to corrode and potentially fracture. In severe cases, this could impair steering function. A Volkswagen spokesperson confirmed that no injuries, fatalities, or property damage have been reported, and the company stressed the action is precautionary in nature.
The steering issue has already triggered recalls in North America. Transport Canada issued a notice on September 11, while the U.S. National Highway Traffic Safety Administration received Volkswagen’s recall report the same day, covering 208,724 North American vehicles. According to Volkswagen’s filing, once the bolt fractures, the steering rack is left with only a single mounting point, and continued stress could crack the rack housing, potentially leading to loss of steering control.
Owners will receive free repairs involving bolt replacement with a corrosion-resistant version, a procedure expected to take less than one hour. Drivers may continue operating their vehicles until they schedule a service appointment. Owner notification letters in the United States are expected by November 10.
The recall scope may expand further. According to reports citing industry sources, the defect could eventually affect approximately 4 million vehicles across Volkswagen Group’s Skoda and SEAT brands, though official confirmation has not yet been announced. Japan’s transport ministry has not yet issued any recall notice as of late September.
Financially, the recall arrives at a precarious time. Volkswagen slashed its 2026 operating return on sales guidance to no more than 1% on September 18—down sharply from a previous range of 4.0% to 5.5%—citing approximately €10 billion ($11.4 billion) in special charges. These include €6 billion in goodwill impairment for its Porsche brand, restructuring expenses, and asset write-downs tied to Chinese joint ventures.
First-half results already reflected the company’s struggles. Operating profit fell 11.6% year-on-year to €5.9 billion, while after-tax profit dropped 30.7% to €3.1 billion. Global vehicle deliveries declined 6.3% to approximately 4.13 million units, with China deliveries plummeting 25.9%. The second quarter deteriorated further, with China deliveries down 36.6%.
Analysts estimate the recall will carry a direct cost of €300 to €500 (approximately $340–$570) per vehicle, totaling between €860 million and €1.43 billion ($1.0–1.6 billion). Volkswagen has not publicly disclosed its financial provision for repairs.
Despite recent headwinds, Wall Street maintains a consensus “Moderate Buy” rating on Volkswagen shares, with an average price target of €104.20 (approximately $120) per share.
