VW and Audi Settle Class Action Suit Over Engine Sludge

The Center for Auto Safety is the nation’s premier independent, member driven, non-profit consumer advocacy organization dedicated to improving vehicle safety, quality, and fuel economy on behalf of all drivers, passengers, and pedestrians.

September 29, 2010

The Volkswagen Group of America has tentatively settled a class-action suit claiming that the engines of nearly a half million VWs and Audis were prone to damage from sludge, and that the automaker did not provide enough help to owners.

Under the agreement, Volkswagen would pay at least 50 percent of the cost of fixing the engines, according to documents filed in United States District Court in Boston. Judge Joseph L. Tauro is scheduled to consider whether to give final approval to the settlement in March.

The vehicles involved are the 1997–2004 Audi A4 (sedan, wagon and convertible variants) and the 1998–2004 VW Passat with the 1.8-liter 4-cylinder engine. Combined, almost 480,000 vehicles are covered. Some owners complained they had to pay $4,000 to $8,000 for repairs.

Click here to read the full story from the New York Times

Click here to view the settlement agreement