Volvo Cars said Saturday it expected to complete the retooling of over 500,000 diesel-powered vehicles to reduce the risk of engine fires over the coming months.

The company in July announced a worldwide recall due to certain components in the motor falling at risk of melting and -- in the worst-case scenario -- catching fire. A solution comprising new software and a new cooling system has offset the issue and customers have been contacted for the retooling since October, spokesman Stefan Elfstrom told dpa. Elfstrom said the recall affected 54,000 cars in Germany and 86,000 cars in Sweden. Models with four-cylinder diesel motors manufactured between 2014 and 2019 have been affected.

In 2010, China-based Zhejiang Geely Holding Group took ownership over the Swedish car manufacturer from U.S. automotive giant Ford.

Stockholm daily Dagens Nyheter reported on Saturday that a similar move had been taken by German carmaker BMW, which instigated a move to recall 12,900 diesel cars sold in Sweden. BMW said on Thursday that it would be recalling 232,000 diesel cars - including 113,000 in Germany alone - due to a potential fire hazard, extending a recall that began last year. However, the fire risk is "very low."

The basis of the recall lies with a defect involving the cooling module of the vehicles' exhaust gas recirculation system. Affected are vehicles with four-cylinder diesel engines from the series 1 to 7, as well as the SUV models X1, X3, X4, X5 and X6.

According to BMW, contact is being made with owners of the affected.