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Volkswagen Recalls Passats on Brake, Diesel Systems (Update1)

By Kenneth Wong

Dec. 8 (Bloomberg) -- Volkswagen AG, Europe's largest carmaker, recalled 300,000 Passat cars worldwide because of faulty brake and diesel systems and windshield-wiper motors.

Power-brake vacuum lines on the affected vehicles may fracture and become disconnected at low temperatures, drastically reducing braking power, the Wolfsburg, Germany-based company said in a statement today.

A fuel-cooling unit's holder on diesel-powered models sold outside the U.S. may break and cause a fuel leak, Hans-Gerd Bode, a Volkswagen spokesman, said in a phone interview. The wiper motor may fail during heavy rain due to excessive moisture.

The Passat is among 20 models Volkswagen has introduced over the past year to boost sales and help pay for elimination of as many as 20,000 jobs in a reorganization started by Chief Executive Officer Bernd Pischetsrieder, who will be replaced by Audi division CEO Martin Winterkorn in January. The carmaker said Nov. 29 that it will start making the car in India next year.

Volkswagen recalled 130,000 Passats in Germany and 62,000 of the model in the U.S. and Canada. Repairs of the car will take a maximum of one hour, the company said.

To contact the reporter on this story: Kenneth Wong in Berlin at kwong11@bloomberg.net.

Last Updated: December 8, 2006 13:07 EST

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