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General Motors has reportedly reached a settlement deal with consumers who claim that certain Chevrolet Equinox and GMC Terrain SUVs possess defective engines that use too much oil.
The proposed GM class action settlement is worth between $40 million and $45 million, and will cover three related class action lawsuits over the engine oil issue.
Under the terms of the GM class action settlement, General Motors will establish a program to cover the costs of repairing affected SUVs after the warranty has expired, and to reimburse owners who paid out-of-pocket to repair damage allegedly related to the excessive oil consumption problem.
The settlement deal was struck to avoid the continued costs and risks of pursuing further litigation.
According to the drivers’ motion for preliminary settlement approval, “absent a settlement, the final resolution of the litigation through the trial process may require several more months or even years of protected , adversarial litigation and appeals, which will delay relief to the tens of thousands of possible settlement class members.”
The drivers went on to say that the GM class action settlement posed an opportunity for the drivers to receive more compensation than they otherwise would have, because reportedly, GM would attempt to have two of the related class action lawsuits — those filed in California and Illinois — dismissed, which would possibly result in Class Members receiving no compensation.
As part of the proposed GM engine defect class action settlement, General Motors will pay up to $2.5 million in attorney fees and expenses.
The three related suits that the GM oil settlement deal will cover claimed that the affected engines were in certain Chevrolet Equinox and GMC Terrain SUVs.
One suit was filed in September 2018 by Florida residents Ellen Berman and Dayana Guach. They claimed that the SUVs have a defect that causes the engines to consume as much as 1 quart of oil for every 1,000 miles driven. Allegedly, drivers are not notified of this over use, so oil levels can fall dangerously low.
The Florida residents argued that the defect posed a substantial safety risk to drivers, and therefore “the class vehicles do not provide for safe and reliable transportation.”
Other class action lawsuits over the same issue were filed in California in 2017 and in Illinois in April 2018.
In the engine oil class action lawsuit filed in Illinois, drivers argued that the excessive oil use of the engines led to a range of problems, which reportedly included the engines shutting down and losing power unexpectedly.
Additionally, the Illinois drivers argued that the vehicles could stall and start fires unexpectedly.
The majority of claims brought forward by drivers in the California engine oil class action lawsuit were dismissed in June. A judge argued that the drivers had not sufficiently established that their vehicles were affected by a manufacturing defect that was, as the drivers claimed, covered by the vehicle’s warranty.
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
The GM vehicle owners are represented by Rachel Soffin, Gregory F. Coleman, Adam A. Edwards and Mark E. Silvey of Greg Coleman Law PC, Robert Ahdoot of Ahdoot & Wolfson PC, and Daniel K. Bryson and J. Hunter Bryson of Whitfield Bryson & Mason LLP.
The GM Chevrolet Equinox SUV Oil Consumption Defect Class Action Lawsuits are Ellen Berman, et al. v. General Motors LLC, Case No. 2:18-cv-14371, in the U.S. District Court for the Southern District of Florida; Hindsman, et al. v. General Motors LLC, Case No. 3:17-cv-05337, in the U.S. District Court for the Northern District of California; and Sanchez, et al. v. General Motors LLC, Case No. 1:18-cv-02536, in the U.S. District Court for the Northern District of Illinois.
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142 thoughts onGM Oil-Guzzling SUVs Class Action Settlement Valued at $40M
Just sold my Equinox. Same issues, excessive oil consumption leading to timing chain failure and it still wasn’t even completely fixed. I hold GM realizes by dragging their heels and not fixing this problem as soon as it was discovered how much they damage their reputation and future business. I shouldn’t have major problems on a car under 90k miles. My new car isn’t a GM and my husband and I will never buy another GM again. I just don’t trust their products anymore.
It is a shame. I still have my 2014 Terrain. I noticed it burned oil ever since I got it. Under 80k miles was told I should replace timing chain. Ridiculous! I will let them fix it under this lawsuit settlement but I’ll never by GM again
Gm Who do I need to talk to start me a lawsuit my 2012 terrain is having the same issue
Agree mine isnt even 78000 and its either timing chain or whole crap engine blown because low oil and no lights went on to warn me anything.
I purchased a 2012 Equinox in December 2018. I have always been one to check my fluids every month. I noticed the oil consumption and started checking on the internet about it. I came across a supplemental warranty agreement to replace the ring and other stuff to fix it. When i called the dealer it in April of 2019, I was told that it is based on the date that my car was built. I missed it by a month. Seams like that is info that should be given to you at the dealer when you buy a car.
I was told by my mechanic that my 2012 Chevy Equinox was burning oil. He changed the oil and told me to come back in 2 weeks to check it. It was low and the oil life was ve ry low. He topped it off and again told me to come back in 1 to 2 weeks… again it was down. I checked with another mechanic friend of mine who told me that there was a recall ‘in the works’ because of this known issue. I called the Chevy dealer who told me that I had to bring it in to the dealer and pay for an oil change and then bring it in after 1,000; 2,000; and possibly 3,000 miles before anything would be done… they wouldn’t take the word of my mechanic who I bring all of my cars to and who has never steered my family wrong. It’s been 5weeks and I’m down about 2 – 3 quarts and when you remove the oil cap, you can smell the burnt oil – plus there’s oil ‘sweat’ around the cap on the outside. I drive Scouts all the time and will be driving to West Virginia from Illinois in less than 5 weeks. This needs to be fixed ASAP – it isn’t safe!
My 2010 is at 118,713 miles. I read somewhere that the cutoff to qualify is 120k miles. Do I need to stop driving it until GM can inspect it? Also … is this just on the “Eco” or all 2.4 liter engines?
I have 2014 GMC Terrain and no low oil light ever comes onand oil life is still good but the car starts shaking and makes a hard start up sound. JUST left dealership again and they checked oil and nothing. Added 3 quarts of oil before it even began to show in the dipstick! Not leaking oil anywhere but using way too much. This is a joke, there needs to be a recall on this immediately.
My 2011 equinox is burning oil and no dash light ever came on to show low engine oil. Almost 3 quarts low!!! If I hadn’t gone for an oil change i would most likely have fried motor. This is first i have heard of chevy knowing there is a problem. How do i go about actually having them fix it?
My 2012 equinox I bought used just 4 months ago already blew the rear main seal do to pcv valve freezing and blowing it out. Now fighting with oil consumption problem. Also needed new manifold after rear seal that dealer didn’t cover. Never buying a gm product again.
This is happening to my 2012 Equinox. I have always been on time with my oil changes but the last 2 times I went to get my oil changed they told me the oil was sludge and did not register on the dip stick. They recommended the oil flush and to monitor. I usually change my oil every 3000 miles and when went to get my brakes inspected they checked my oil and again brought it to my attention that the oil did not register on the dip stick and I was only at 2000 miles. I was not expecting to have to have it changed again already and reading this concerns me there is something wrong with the engine.
This is happening with my 2014 equinox! I’ve replaced the catalytic converter, solenoids, oil changes! Its ridiculous!
I’ve looked into getting rid of the vehicle but the value is horrible compared to what I owe!
My equinox not only uses oil it also will keep trying to start when we release the key the lights will work then not work the engine light on off on off the oil problems have caused me to change the cam sensor both and cam solenoids both nothing but problems