Over time, Volkswagen said in its notice to the National Highway Traffic Safety Administration (NHTSA), the gearbox fluid additives may cause the internal gearbox lead frame to corrode.

If corrosion deposits collect between electrical wiring, an electrical short in the power supply may blow gearbox fuses and deactivate the gearbox hydraulic pump or mechatronic unit.

The driver will immediately be alerted by a flashing gear indicator warning lamp in the instrument cluster, and the vehicle will lose motive power, but can coast to a stop. All other vehicle systems, such as the engine, steering and brakes are unaffected and remain operational.

Volkswagen so far is not aware of any such failure in the US, but such failure have been reported in foreign markets. Volkswagen is recalling all affected vehicles worldwide to address the issue.

Volkswagen will notify owners, and dealers will replace the gearbox oil with a non-corrosive version, free of charge. Some 3,837 vehicles are affected in the US.