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Volkswagen tells dealers to stop sale of 4 models due to fire risk

Volkswagen said Wednesday it will stop selling about 27,000 current model year Jettas, Beetles, Beetle Convertibles and Passats with 1.8-liter engines and automatic transmissions in North America because transmission oil may leak.

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.

Read MoreToyota to recall nearly 6.4 million vehicles for various faults

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.

Read MoreFord recalls nearly 435,000 vehicles

About half the cars remain on dealer lots, according to the Associated Press. VW said vehicles sold outside North America were not affected.

—The Associated Press contributed to this report

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