VW Recalls New Beetle to Exterminate Some Bugs
The Bug, it seems, has bugs.
In an embarrassing admission, Volkswagen of America Inc. said Friday it is recalling all 8,500 New Beetles it has sold in the United States because of a wiring problem that could lead to engine fires.
The voluntary recall--one of the earliest on record after the introduction of a new model--comes just seven weeks after the first of the retro-styled compacts were delivered to dealers.
The cars have been gobbled up by eager buyers, many of whom made down payments months earlier to be the first on their block with the new car.
Friday’s move follows a month of sales hype and an announcement just two weeks ago by the National Institute for Highway Safety that the plastic-fendered New Beetle was the safest small car on the road, faring better than 10 competitors in slow-speed crash tests.
“We expect it to happen with a brand-new model,” said George Bregante, an Irvine businessman who paid $1,300 above the sticker price of $16,680 to get his New Beetle. He has owned half a dozen old Bugs over the years and bought his new one last month at a dealership in Woodland Hills.
“This is the first time out, and they’re going to find some of these things. As long as they recall them and fix them, it’s no problem,” Bregante said.
“We’re on our way to Santa Barbara right now,” he said via his car phone Friday, “and we’re in the Beetle. We could have taken my Mercedes or my wife’s BMW, but we picked the fun car.”
Volkswagen spokesman Steve Keyes said the recall was prompted by three complaints of an air-conditioning compressor malfunction. In each case, electrical wires from the battery were found to have been damaged by rubbing against the edge of the car’s battery tray.
The repair will involve moving the wires and replacing the battery tray to remove the sharp edge that can abrade wiring insulation. The repair is being made to avoid possible air-conditioning and fuel-pump malfunctions or even engine fires, the auto maker said.
No accidents or injuries have resulted from the problem, Volkswagen said. The recall also affects about 1,600 New Beetles the German auto maker has sold in Canada.
Recalls of new cars are not uncommon.
Ford has issued several recalls for its relatively new Expedition sport-utility vehicle, Dodge recalled the new Neon compact three times in its first year or so on the market, and General Motors Corp.’s Saturn division recalled more than 1,200 cars within months of its launch in 1990 to repair faulty seat-recliner mechanisms.
And Irvine-based Mazda Motor of America Inc. has had several recalls of its hot-selling Miata roadster, including one the company ordered just weeks after the revamped 1999 models went on sale earlier this year.
In that recall, Mazda repaired 1,100 cars with a wiring abrasion problem similar to that now plaguing the Volkswagen.
While auto makers used to wait until the government forced them to recall their cars, they have learned that instituting voluntary recalls as soon as a problem crops up can help them. “It says that you care,” said Wes Brown, an analyst with Nextrend in Thousand Oaks.
In addition to the recall, Volkswagen is quietly preparing a “service bulletin” to be sent to its 600 U.S. dealers. It will advise them of a second problem: static electricity buildup that can cause a mild shock.
Unlike a recall, a service bulletin merely instructs dealers to have their mechanics make the repair whenever the customers bring their cars in for service. It is not safety related. The fix will involve installation of a grounding wire to drain off the static charges.
The recall is going to cause at least a small hiccup in delivery schedules, meaning the hard-to-get Bugs will be harder to get, at least through the end of the month. VW, whose American subsidiary is based in Auburn Hills, Mich., plans to sell 50,000 New Beetles in the U.S. this year.
Volkswagen brought back the Beetle after a two-decade hiatus and has cleverly tapped into nostalgia about the original version in its advertising and marketing, which has effectively captured the attention of baby-boomer car buyers. Demand has led to shortages, months-long waiting lists and a fair degree of price inflation.
The base price of the car is $15,200, and, with the two option packages Volkswagen has been adding at the factory, most have come into the U.S. with a $16,680 sticker.
But some dealers are routinely adding extras, like fancy tires and wheels, pinstripes and other aftermarket equipment, and charging hefty premiums for the tricked-out cars. And some speculators who got on dealer waiting lists early and took delivery of new Bugs in the first month of sales have already started advertising them as used cars at prices ranging from $20,000 to $25,000.
Volkswagen had hoped to fill the supply pipeline by early summer and end the shortage that is driving price hikes, but the recall and the repairs needed to correct the static electricity problem are likely to help keep the cars in short supply just a little longer.
Miles Brandon, owner of Capistrano Volkswagen in San Juan Capistrano, said he was told that shipments to dealers could dry up for a few days in the middle of the month but that VW hoped to be back on schedule by the beginning of June. “We’ll get less cars now but more around the end of the month to make up for it.”
The cars are built at Volkswagen’s plant in Puebla, Mexico, and are sent by ship to various ports, including the Port of San Diego, where the company prepares them for delivery to dealers.
Jeff Laplante, general manager of Volkswagen of Santa Monica, said dealers expect to start receiving recall repair kits next week.
New Beetle owners are being notified of the recall by express mail. Dealers will replace the tray and reroute the wires at no charge in a repair that should take about an hour, VW said. It is expected to cost the firm $500,000.
Volkswagen has set up a special toll-free number at (877) 423-3853 for customers. The company also has said it will provide the recall service at no charge for New Beetle owners who purchased their cars from private parties instead of through dealerships.
