— Toyota transmission problems have caused a class action lawsuit that alleges the 8-speed transmissions and torque converters are defective.
The 8-speed transmissions are built and supplied by Aisin, which the lawsuit says is 25% owned by Toyota.
According to the lawsuit, the Lexus and Toyota transmissions slip, hesitate, lose power, make loud whining sounds, shift erratically and fail in these vehicles.
- 2017-present Toyota Highlander
- 2024-present Toyota Grand Highlander
- 2018-2024 Toyota Camry
- 2017-2020 Toyota Sienna
- 2019-2022 Toyota Avalon
- 2019-present Toyota RAV4
- 2023-present Lexus RX 350
- 2021-present Lexus ES 250
- 2019-present Lexus ES 350
- 2022-present Lexus NX 250 and NX 350
- 2024-present Lexus TX 350
The 8-speed automatic transmission lawsuit was filed by California plaintiff Neil Pallaya who purchased a new 2020 Toyota Highlander in December 2020. The vehicle is equipped with a 2GR-FKS (3.5 L V6) gasoline engine, a UA80E transmission, and a 5-year/60,000-mile limited warranty.
In September 2025 and with about 67,200 miles on the odometer, the 8-speed transmission began making a persistent high-pitched whining noise when pressing the accelerator. A dealer determined the transmission had failed and needed to be replaced at an estimated cost of $7,451.33 because the Toyota was beyond its warranty.
The plaintiff complains the transmission has not been repaired or replaced because a replacement 8-speed transmission is as defective as the original.
It cost $405 to file the Toyota transmission lawsuit for more than $5 million, but the plaintiff claims he has concerns about his unrepaired 8-speed transmission.
He also contends he did not receive the benefit of his bargain because his Highlander has a "diminished quality and value than represented and failed to meet ordinary consumer expectations regarding safe and reliable operation."
Toyota 8-Speed Transmission Problems
According to the class action lawsuit, excessive heat builds up inside the torque converter which causes the transmission fluid to burn and prematurely degrade. This damages the clutch and causes the 8-speed transmission to fail. The lawsuit alleges the transmission should last at least 200,000 miles.
Toyota and Aisin allegedly knew in 2015 about the 8-speed transmission problems but didn't order a redesign of the torque converters or transmissions.
According to the Toyota transmission lawsuit:
"Toyota’s warranty analytics group flagged the 8-speed transmission as a 'high-priority powertrain concern' by February 2017, prompting issuance of a series of Technical Service Bulletins (TSBs) addressing 'harsh shift,' 'hesitation,' 'abnormal transmission noise,' and 'improper torque-converter operation.'”
The class action references these TSBs and other actions released by Toyota related to 8-speed transmissions.
- Toyota Tech Tip T-TT-0410 (Aug. 17, 2016)
- T-SB-0187-17 (Feb. 20, 2017)
- T-SB-0194-17 (Mar. 2, 2017)
- T-SB-0330-17 (Dec. 11, 2017)
- T-SB-0001-18 (Jan. 8, 2018)
- T-TT-0474-18 (Jan. 10, 2018)
- T-SB-0010-18 (Feb. 2, 2018)
- T-SB-0018-18 (Mar. 2, 2018)
- T-SB-0160-18 (Dec. 18, 2018)
- Customer Support Program JZC (Apr. 18, 2019)
- T-SB-0107-19 (Aug. 15, 2019)
- T-SB-0152-19 (Nov. 1, 2019)
- T-TT-0580-19 (Nov. 4, 2019) and T-TT-0580-19_Rev (Jan. 27 2020)
- T-TT-0615 (June 1, 2020)
- L-TT-0288-20 (June 10, 2020)
- T-SB-0105-20 (Oct. 18, 2020)
- T-SB-0122-20 (Dec. 14, 2020)
- T-SB-0008-21 (Feb. 9, 2021)
- L-SB-0003-21 (Feb. 9, 2021)
- T-SB-0087-23 (Nov. 3, 2023)
The lawsuit further argues transmission problems are caused by the design and calibration of the transmission control module software and the mechanical configuration of the 8-speed automatic transmission system.
The Toyota 8-speed transmission lawsuit was filed in the U.S. District Court for the Central District of California: Neil Pallaya v. Toyota Motor Sales U.S.A., Inc., et al.
The plaintiff is represented by Blood Hurst & O'Reardon, LLP.