VW Will Reimburse Drivers in Faulty Engine Class Action Settlement

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

Volkswagen has agreed to a settlement that would end a multidistrict litigation claiming that many vehicles’ engines have a timing chain tensioner that’s defective.

If approved, the potential VW settlement deal will resolve a two-year long multidistrict litigation.

Multiple class action lawsuits that were filed as early as May 2016 claim that a defect in Volkswagen vehicles engines, and engines in the company’s Audi brand, possess a defect that cause the engines to randomly fail, putting drivers and others at risk for injury or death. 

This settlement, if approved by the court, would cover the cost for many Volkswagen and Audi drivers to have their vehicles repaired. The proposed Class of drivers include anyone in the United States and Puerto Rico who purchased or leased one of a number of Volkswagen and Audi vehicles made between 2008 and 2014.

Volkswagen has agreed to extend warranties on the timing chains and timing chain tensioners in affected vehicles to cover the parts for 100,000 miles or for 10 years.

Under the terms of the proposed settlement, if the timing chain tensioner fails within 10 years or 100,000 miles, Volkswagen will reimburse drivers for the 100% of the cost of a new part if the driver has the repairs done at an authorized VW or Audi dealer.

However, if the vehicle owner has the timing chain tensioner fixed at an independent vehicle repair service center within the 10 years or 100,000 miles, VW will cover the cost of parts and labor up to $1,100.

Likewise, if a Class vehicle’s timing chain needs to be replaced or repaired within 10 years or 100,000 miles, Class Members will receive a refund of the entire cost of labor and parts if the car is taken to an authorized Audi or VW dealership.

Timing chain repairs or replacements that are performed on Class vehicles at an independent dealer will be covered up to $1,500.

If drivers need both the timing chain and timing chain tensioner fixed or replaced, Volkswagen has agreed to cover 100% of the total cost if the car is taken to an Audi or VW dealer.

Class vehicles that require both the timing chain and timing chain tensioner to be repaired or replaced will receive a refund of no more than $2,000.

According to the VW class action settlement terms, Class Members who need to replace or repair their engine because of the damage caused by the timing chain or timing chain tensioner will receive the following benefits:

The highest recovery for Class Members who take their vehicle to an independent service center for an engine repair is $6,500 and will be subject to the same mileage/time constraints presented in the table above.

The drivers state that in addition to the approved terms of the settlement, they will seek $2,500 awards for each of the named plaintiffs in the multidistrict litigation, as well as reasonable expenses and legal fees.

The drivers expressed their approval of the settlement, calling the proposed deal “an outstanding recovery for members of the settlement class.”

The representation for the drivers state that they “have reached the conclusion that the substantial benefits the settlement class members will receive as a result of this settlement [are] eminently fair, reasonable, and adequate, especially when compared to similar settlements and in light of the risks of continued litigation.” Now, the drivers and Volkswagen are awaiting preliminary approval of their proposed settlement deal.

According to the claims in the multidistrict litigation, the engine failure in many Volkswagen and Audi vehicles was caused by the chain tensioning system that would unexpectedly fail.

The VW class action lawsuits stated that “when the Tensioning System suddenly and unexpectedly fails, the Class Vehicles lose engine power, which causes a loss in the ability to accelerate, maintain speed, and/or adequately control the steering wheel or engage the brakes.” Allegedly, this defect put drivers at a risk of collision, endangering their safety and the safety of others.

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 drivers are represented by Carella Byrne Cecchi Olstein Brody & Agnello PC, Kessler Topaz Meltzer & Check LLP, Kantrowitz Goldhamer & Graifman PC, Thomas P. Sobran PC, Mazie Seater Katz & Freeman LLC, McCune Wright LLP, Seeger Weiss LLP and Baron & Budd PC.

The Volkswagen, Audi Engine Failure Multidistrict Litigation is In re: Volkswagen Timing Chain Product Liability Litigation, Case No. 2:16-cv-02765, in the U.S. District Court for the District of New Jersey.

UPDATE: September 2018, the Volkswagen timing chain defect class action settlement is now open.Click here to file a claim.UPDATE 2: On Dec. 7, 2018, amid Class Member objections, plaintiffs in a Volkswagen engine defect class action are trying to keep aproposed settlement deal alive.

 Plaintiffs in the Volkswagen class action emphasized to the court that there were only 43 objections to the proposed settlement.