Volkswagen Australia said it would contact the customers involved, and inspect and replace the mechatronics unit in the DSG for no charge to the motorist.

It is not yet clear whether the recall will address all issues related to the DSG, which is the automatic transmission in late-model Volkswagens. One symptom of a faulty DSG was a sudden deceleration while driving. Some motorists have also reported shuddering in the vehicles.

The move follows a wave of anger from Volkswagen customers sparked by the death of Melissa Ryan, a 32-year-old Melbourne woman who died in 2011 on the Monash Freeway while driving a 2008 Golf. Ms Ryan's family and the truck driver who rear-ended her believe the car dramatically lost speed shortly before she was hit.

Ms Ryan was driving a petrol manual and most of the Volkswagen complaints to Fairfax Media - now more than 300 - involve automatic vehicles with the DSG transmission or a known fault with the diesel injectors.

But reports of the coroner's inquest into Ms Ryan's death acted as a trigger for Volkswagen drivers who have experienced sudden deceleration. The customers were furious Volkswagen has not issued recalls in Australia that had been established in other countries.