DRIVERS of two popular car brands may qualify for financial compensation over a major defect.
A class action lawsuit settlement is underway to resolve these claims, with motorists receiving up to $3,850 for repairs.
Certain Volkswagen and Audi customers can qualify for reimbursement over a defect issue (stock image)[/caption]
The reimbursements have been brought about to resolve claims that certain Volkswagen and Audi vehicles were equipped with defective turbochargers.
Volkswagen agreed to the lawsuit, with settlements that benefit both current and former owners and lessees.
Vehicles affected
The action applies to Volkswagen and Audi vehicles equipped with a Generation 1, 2, or 3 EA888 engine.
A full list of covered vehicles can be found on the settlement website.
The lawsuit claims that vehicles were equipped with defective turbochargers that were prone to premature failure.
This is alleged to have been caused by corrosion in the turbocharger wastegate.
As a result, owners and lessees of these vehicles claim they had to pay out of pocket for pricey repairs.
Audi, a luxury vehicle brand owned by Volkswagen, also sells vehicles under several other brands worldwide, including in the United States.
Volkswagen has not admitted any wrongdoing but agreed to a rumoured $1.95 million to settle allegations in this lawsuit.
Under the terms of the settlement, class members can receive a partial reimbursement for out-of-pocket turbocharger repairs.
Class members must have paid for a turbocharger repair or replacement within 8.5 years or 85,000 miles of their vehicle’s in-service date.
They can then receive 40% to 50% reimbursement for one turbocharger repair.
Reimbursement rates vary depending on the generation of the vehicle.
These are capped at $3,850 for repairs performed by non-Volkswagen dealers.
Who is eligable?
Consumers who purchased or leased certain 2008–2024 Audi A3, Q3, A4, A5, A6, Q5, and TT vehicles.
Consumers who purchased or leased certain Volkswagen vehicles equipped with a Generation 1, 2, or 3 EA888 engine.
And class members can also receive a warranty extension for their vehicle.
Generation 3 vehicles will have new vehicle limited warranties extended to 8.5 years or 85,000 miles.
This extension will cover 50% of the cost of a turbocharger repair when the failure is caused by corrosion.
The deadline for exclusion and objection is Wednesday, October 15, 2025.
Meanwhile, the final approval hearing for the Volkswagen and Audi turbocharger class action lawsuit settlement is scheduled for Thursday, December 4, 2025.
To receive settlement benefits, class members must submit a valid claim form by Saturday, November 29, 2025.
Proof of purchase
To qualify for compensation, consumers must submit a repair invoice that includes their name as well as the make, model, and VIN of the vehicle.
They must also provide the name and address of the Audi or Volkswagen dealer or service center, the date of repair, and the vehicle’s mileage at the time of repair.
A description of the work performed, a breakdown of parts and labor costs, the amount charged, and proof of payment will also be required.
And if the repair was not performed by an authorized dealer and the only proof is an invoice marked “Paid,” consumers must also provide a declaration from the repair facility, signed under penalty of perjury, confirming payment.
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