Volkswagen is to recall around 850,000 cars following the discovery of problems with the car's ignition systems. The recall will affect 2001 and 2002 Audi, Skoda, Seat and Volkswagen cars equipped with 1.8-litre turbo, V5, V6 and W8 petrol engines.

Some cars manufactured at the start of the 2003 model year may also have to be recalled. Volkswagen is to contact all of its customers that maybe affected by the problem when replacement parts become available.

The problem is linked to failure of ignition coil and resulting in reduced power output.

The company recalled 950,000 small cars worldwide last June following the discovery of brake problems.