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Volkswagen recalls 380,000 vehicles

Volkswagen AG (VOW.FRA, VOW.ETR) announced Wednesday it will recall more than 380,000 vehicles after China’s state broadcaster revealed serious transmission problems among some of the company’s most popular models, The Wall Street Journal reported. Analysts said the recall could cost up to US$618 million. The scathing report by China Central Television was part of last Friday’s “Consumer Rights Day,” which targeted some Western brands but largely focused on carmakers. The report also suggested that materials used by BMW (BMW.FRA, BMW.ETR), Audi (NSU.FRA, NSU.ETR) and Daimler (DAI.FRA, DAI.ETR) to dampen noise and reduce vibration emit toxic fumes.

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