The German carmaker Volkswagen said it was recalling up to 850,000 cars.

The news sent shares in Europe's largest car maker sharply lower on Tuesday.

Volkswagen said on Tuesday the problem affected Audis, Skodas, Seats and VWs fitted with 1.8-litre turbo, V5, V6 and W8 petrol engines built in the 2001 and 2002 model years, as well as some cars built at the start of the 2003 model year.

Warning light

"The failure of an ignition coil could affect the engine's operation and is noticeable by rough running or reduced power output," the car maker said in a statement.

Although a warning light should inform the driver of any problem, Volkswagen said it would contact all customers who may be affected as soon as replacement parts were available.

Volkswagen recalled 950,000 small cars worldwide last June due to brake problems -- its biggest recall in years.