In a proposed settlement in a class-action lawsuit over sludge-damaged engines, Volkswagen AG has said that it will pay maintenance costs. Last week, Judge Joseph Tauro of the US District Court in Boston had given conditional approval of the settlement.
There is a scheduled hearing on March 11, 2011 to approve the final settlement. Court documents show that the settlement covers 479,768 VW and Audi models.
These are 1997-2004 Audi A4 models and 1998-2004 VW Passat models that have 1.8-liter turbocharged engines.
The documents indicate that even when maintained, the engines were prone to oil sludge from coking deposits, according to the automaker's recommended maintenance intervals and oil-quality specifications.
In addition, these papers show that each plaintiff asserts that the vehicle was damaged or is expected to suffer future damages due to the sludge and coking problems.
The lawyers said that the multi-state suit was consolidated in Massachusetts in 2006. The suit alleges that VW and Audi did not honor an 8-year unlimited warranty extension issued in 2004 by rejecting claims filed by vehicle owners with sludge-related engine failures. [via AutoWeek]