Audi Transmission Settlement Applies to S4 and S5 Vehicles

Audi transmission lawsuit settlement includes direct-shift gearbox (DSG) S-tronic transmissions.

Audi Transmission Settlement Applies to S4 and S5 Vehicles

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— An Audi transmission settlement has received preliminary approval for 2010-2012 Audi S4 and Audi S5 vehicles equipped with direct-shift gearbox (DSG) S-tronic transmissions.

The Audi transmission class action lawsuit alleges the S-tronic transmissions are defective because they cause sudden, rough shaking and violent jerking, known as shuddering and juddering.

The transmission problems occur when an Audi S4 or S5 driver tries to accelerate, decelerate, or shift into second, third or fourth gear. The plaintiff also alleges the Audi S4 and S5 vehicles suffer from clunky downshifting and problems during gear shifting.

The Audi transmission settlement was reached after several plaintiffs were dropped from the Audi transmission class action lawsuit that was amended four times. Previous lawsuit versions also included more models and model years.

Audi Transmission Settlement Terms

The settlement agreement says Audi will partially reimburse customers for one repair of a diagnosed condition of shuddering, juddering, rough shifting or improperly entering “limp mode” due to the transmission.

A repair means the replacement of either the 2010-2012 Audi S4 or Audi S5 transmission or mechatronics unit.

To qualify for partial reimbursement, the repair must have been performed prior to the class action settlement notice date and within nine years or 90,000 miles (whichever occurred first) from the in-service date of the Audi vehicle.

The in-service date means the date on which it was first delivered to either the original purchaser or original lessee.

However, reimbursement is based on a sliding scale based on the age and mileage of the vehicle, which means the Audi customer will still be stuck with part of the cost. Additionally, an Audi customer must show documents proving the vehicle was maintained based on the vehicle's maintenance schedule.

The settlement agreement also includes a transmission extended warranty, but for some Audi owners the "extended" warranty may be useless.

According to the transmission settlement, the extended warranty covers a percentage of the cost for one repair by a dealer "during a period of nine years or ninety thousand miles (whichever occurs first) from the In-Service Date of the Settlement Class Vehicle."

Considering these are model year 2010-2012 Audi vehicles, the "extended" warranty has already expired for at least some of the vehicles before the transmission class action has even received final court approval.

In addition, the extended warranty only covers a percentage of the cost based on the age and mileage of the vehicle. And the customer must show proof the vehicle was maintained based on the vehicle's maintenance schedule.

"Transmission shuddering, juddering, rough shifting, or improperly entering “limp mode” resulting from misuse, abuse, alteration or modification, a collision or crash, vandalism, lack of or improper maintenance, and/or damage from an environmental or outside source, are not reimbursable or covered by the Extended Warranty." — Audi transmission settlement

Volkswagen/Audi denies all allegations in the class action lawsuit and says the Audi transmissions are not defective.

Judge Haywood S. Gilliam, Jr., must still grant final approval to the Audi transmission settlement.

Plaintiff John Chess will receive $5,000 and the attorneys who represent him will receive more than $1 million.

The Audi transmission settlement was preliminarily approved in the U.S. District Court for the Northern District of California: John Chess, v. Volkswagen Group of America, Inc.

The plaintiff is represented by Simmons Hanly Conroy LLC, and Milberg Coleman Bryson Phillips Grossman.