* Judge rules in VW's favor in appeal against recall
* Issue concerns noise, possible excess wear in 1-liter
BRASILIA Jan 16 A Brazilian court on Tuesday
overturned a ruling made last week ordering Volkswagen
to recall up to 400,000 one-liter cars over an
unusual engine noise, a statement on the court's website said.
Volkswagen, Brazil's second biggest car brand, was ordered
by a judge in Rio Grande do Sul last Friday to make the recall
of the 2009/10 models fitted with the affected engines over
concerns they could wear prematurely and generate extra costs
But a different judge in the same state ruled in VW's favor
in an appeal on Tuesday, scrapping the recall and determining it
could irreparably tarnish the manufacturer's image and that the
cost could hurt the automobile sector as a whole.
Volkswagen said that in 2009 it detected the engine issue
but determined it did not represent a risk to the health and
safety of consumers.
The German company said that it agreed with authorities of
several Brazilian states at the time to resolve the issue by
offering free oil checks and changes for the affected cars. It
also extended the guarantee on the engines.
For more details on the prior judgement and the alleged
engine problem, see:
(Reporting by Peter Murphy; Editing by Edwina Gibbs)