In the cars, made after February 1, an o-ring that connects the transmission cooler to the transmission is defective, which may lead to a leak of fluid. This can cause a fire risk under extreme conditions, VW said.

Of the 27,000 vehicles, 25,000 are in the United States and about 2,000 in Canada, VW said.

No fires, accidents or injuries have been reported as a result of the defect, the company said.

Volkswagen said it would notify federal safety regulators and contact customers with the affected vehicles.

VW said vehicles sold outside North America were not affected.

(Reporting by Bernie Woodall; Editing by Jonathan Oatis)