VW issues stop-sale order on newer cars, including some Chattanooga-made Passats

photo VW Passat

Volkswagen of America has sent auto dealers a stop-sale order on new cars produced after Feb. 1, including some of the the Chattanooga-made Passats, according to Automotive News.

VW, citing the risk of a leak in the transmission oil cooler, ordered U.S. dealers to stop selling newer cars equipped with an automatic transmission and VW's most common engine, the 1.8-liter EA888, the industry publication said.

VW has not issued a safety recall, but the company in talks with the National Highway Traffic Safety Administration about how to handle cars that have already been sold.

The German automaker started making the turbocharged four-cylinder engine last year in Silao, Mexico, hoping its fuel economy would help VW expand U.S. sales.

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