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Case Details for "Volkswagen and Audi "

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Volkswagen and Audi Settle Class Action Regarding Defective Engines

The settlement was preliminarily approved on September 24, 2010. According to the agreement Volkswagen and Audi will pay the maintenance costs for vehicle owners who experienced engine failure as a result of an engine defect.

The plaintiffs claim that the 1.8-liter turbo engine installed in the Audi A4 with the model years 1997 to 2004 and the Volkswagen Passat with the model years 1998 through 2004 was faulty. The plaintiffs allege that the engines were overly prone to the formation of oil sludge and coking deposits. The plaintiffs maintain that the deposits cause abnormally high incidence of engine failure even when maintained according to the manufacturer's maintenance recommendations.

The plaintiffs claim that the automakers failed to honor an eight-year unlimited warranty extension issued in 2004 by denying claims brought by vehicle owners with sludge-related engine failure.

 

The settlement class is defined as all current and former owners and lessees of Audi's A4 with model years 1997 to 2004 and Volkswagen's Passat with model years 1998 to 2004 that were equipped with a 1.8-liter turbo engine.

Under the terms of the proposed agreement, the defendants will cover 100 percent of the maintenance costs for owners/lessees with proper documentation of required oil changes and 50 percent of the maintenance costs for owners/lessees without the proper documentation. In addition, the settlement provides owners/lessees eligibility for a 10-year/120,000 mile enhanced oil sludge warranty. All class members who currently own or lease a covered vehicle will also receive revised oil maintenance recommendations.

 

Posted on:2010-10-08
Company: Volkswagen and Audi
Class: all current and former owners and lessees of Audi's A4 with model years 1997 to 2004 and Volkswagen's Passat with model years 1998 to 2004 that were equipped with a 1.8-liter turbo engine
Scope: Nationwide
Type of Case: Consumer
Settlement Administrator:

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