As per a new report By Reuters Volkswagen would have to recall close to about 177,493 Crossover SUV’s in the United States over growing concerns related to a loose engine cover. The issue has been reported by the National Highway and Traffic Safety Administration recently. As per a further probe into the matter new details have confirmed that the engine cover could have left loose after being improperly installed after service.
The Major issue with the loose engine cover is that it might further dislodge itself from its fittings when the vehicle is in motion and come in contact with Hot engine surfaces increasing the risk of fire Hazards, as reported by a U.S. auto safety regulator.
The recall would include models and variants such as Atlas and Atlas Cross Sport vehicles from 2024-2025. The owners of the vehicle would be approached soon and a small fix would resolve the issue. The owners would have to visit the prescribed dealers where the fix would be commenced free of cost. The brand seems to be going through constant issues, before the recall the tariff issues have become a issue for the brand as well.
Tariffs Levied On Volkswagen
The 25% Tariffs that have been stipulated by US President Donald Trump on imports from Mexico and Canada have left the majority of car manufacturers in a whirlwind of selecting new locations for Production. But Volkswagen has a decisive plan to avoid the Tariffs. As per a recent report Volkswagen has shared that its vehicles made in North America would likely avoid Being subjected to 25% tariffs. Other brands such as BMW and a few others might not be exempted from the levied duties.
Trump has provided one-month reprieve on Tariffs to automakers who had production units or any other relation that came under the ambit of United States- Mexico and Canada agreement rules of origin this week. The Tariffs were to be in effect on March 4, but which automakers would end up being subject to tariffs is not clear as of yet.
Volkswagen’s Reaction
A spokesperson from Volkswagen said that its North American Vehicles do not comply with the Terms that have been levied under USMCA. Further, a spokesperson from BMW spoke on the matter and said that vehicles that are being imported from the United States and Mexico do not comply with the rules of the Trade, these issues subject them to steep duties. He further stated that about 10% of BMW’s US sales are imported from Mexico, the spokesperson said.
