The within proposed automotive defect multi-jurisdictional class proceeding involves certain model-year Toyota-, Lexus-, and Subaru-brand vehicles, as defined below (the “Affected Class Vehicles”), engineered, designed, developed, manufactured, assembled, tested, marketed, distributed, supplied, leased, and/or sold in Canada, including the Province of British Columbia, by the Defendants, Toyota Motor Corporation (“TMC”), Toyota Canada Inc. (“TCI”), Subaru Corporation (“SC”), and/or Subaru Canada, Inc. (“SCI”), which are equipped with a defective auxiliary battery charging system that fails to properly and adequately recharge the vehicles’ 12-volt (low-voltage) battery, resulting in repeated loss of charge, damage to the 12-volt battery, and premature battery failure requiring replacement (the “Charging Defect”).

In particular, the Charging Defect, which is latent and occurs without adequate warning or indication to drivers, renders the Affected Class Vehicles unable to start or operate, and/or loss of motive power during operation, thereby posing a real, substantial, and imminent risk of harm, injury, and/or death to vehicle occupants.

“Affected Class Vehicles” include, but are not limited to, the following model year Toyota-, Lexus- and Subaru-brand vehicles designed, manufactured and/or assembled by the Defendants, TC and/or SC, and marketed, advertised, distributed, sold and/or leased by the Defendants, TCI and/or SCI, in Canada, including the Province of British Columbia:

Toyota bZ4X (2023 - 2025)

Lexus RZ (2023 - 2025)

Subaru Solterra (2023 - 2025)

Electric vehicles (“EVs”) require numerous components and modules to function cohesively and deliver the electrical power necessary for motive propulsion. In EVs, these functions are monitored by the Battery Management System (“BMS”), which operates as the brain or gateway that manages how the vehicles are charged from an external power source and distributes that energy to the high-voltage lithium-ion traction battery, 12-volt battery, and other essential electrical components and modules within the vehicle.

Integral components managed by the BMS include: (i) the on-board charger; (ii) DC-DC (Direct Current-Direct Current) converter; (iii) integrated circuits; (iv) microcontrollers; (v) fuses; and/or (vi) cooling system.

The Defendants have combined the conversion and power distribution system into an Electricity Supply Unit (“ESU”), developed by Denso Corporation (“Denso”). The ESU handles, inter alia, Alternating Current (AC)/Direct Current (DC) charging, DC-DC conversion, and power distribution.

The ESU is an integral component that performs the essential function of charging the 12-volt battery under all vehicle operating states, including: (i) by acting as an alternator while the vehicle is operating to convert energy from the high-voltage battery to power the 12-volt battery and maintain charge; (ii) by automatically recharging the 12-volt battery from the high-voltage battery when the vehicle is parked and the battery voltage drops below a prescribed threshold; and (iii) by topping up the 12-volt battery whenever the vehicle is connected to an external charger, such that a failure of the ESU in any of these states results in inadequate charging and progressive battery drain.

While some putative class members have had their 12-volt batteries replaced under warranty to date, a battery replacement is not readily available to all putative class members where the Charging Defect cannot be replicated at the dealership. Further, for putative class members whose vehicles fall outside the warranty period, battery replacement is an out-of-pocket expense.

In fact, battery replacement is not an adequate remedy for the Charging Defect as it does not address the underlying defect in the ESU, which fails to provide sufficient and consistent current to the 12-volt battery to maintain the voltage levels required to power essential auxiliary functions of the Affected Class Vehicles, including: system startup; safety and control systems; peripheral operations; and security systems.

The only alternative and effective remedy and/or fix is a complete redesign of the Affected Class Vehicles’ BMS, and in particular the ESU, to properly and consistently route power from the high-voltage battery so as to adequately and reliably charge the 12-volt battery.

At all material times to the cause of action herein, the Defendants knew, or ought to have known, about the Charging Defect as evidenced by: (i) consumer complaints lodged with American and Canadian government vehicle safety regulators, including the United States National Highway Traffic Safety Administration (“NHTSA”), Transport Canada  and elsewhere online; (ii) warranty claims, part sales, and consumer complaints lodged with the Defendants directly; and (iii) the vehicle manufacturer Defendants own pre-sale durability testing of the Affected Class Vehicles.

The Defendants have exclusive knowledge of, and have been in exclusive possession of, facts and/or information pertaining to the Charging Defect, which were material to the Plaintiff and putative class members, who could not have reasonably known of the Charging Defect. Under the circumstances, the Defendants had an affirmative duty to disclose the Charging Defect at the point of sale and/or lease of the Affected Class Vehicles to putative class members and consumers.

Despite that knowledge and duty, the Defendants have repeatedly failed to disclose and actively concealed the Charging Defect from putative class members and consumers, and continued to market and represent the Affected Class Vehicles as safe, reliable and durable vehicles which, as a result of the Charging Defect, they are not.

As a direct and proximate result of the Defendants’ unfair, misleading, deceptive, and/or fraudulent business practices in failing to disclose the Charging Defect, the Plaintiff and putative class members: (i) overpaid for the Affected Class Vehicles, either through a higher purchase price and/or lease payments; (ii) overpaid for the Affected Class Vehicles as the Charging Defect significantly diminishes the value of the Affected Class Vehicles; (iii) have Affected Class Vehicles that are unsafe, unreliable and dangerous in their operation; (iv) have Affected Class Vehicles that have significantly reduced re-sale value; (v) must use alternative non-comparable modes of transportation or vehicles while their Affected Class Vehicles are repaired; and/or (vi) must expend significant money to have their Affected Class Vehicles repaired.

The Plaintiff and putative class members have purchased and/or leased Affected Class Vehicles that they would not have otherwise purchased and/or leased, or would have paid less for, had they known of the Charging Defect at the point of sale and/or lease. The Plaintiff and putative class members have consequently suffered ascertainable losses and actual damages as a result of the Defendants’ unlawful conduct.

In engineering, designing, developing, manufacturing, assembling, testing, marketing, distributing, supplying, leasing and/or selling the Affected Class Vehicles, the Defendants have engaged in unfair, deceptive, and/or misleading consumer practices, and further have breached their express warranties.

No reasonable consumer would have purchased and/or leased an Affected Class Vehicle had the Defendants made full and complete disclosure of the Charging Defect or would have paid a lesser price. 

The Plaintiff and putative class members expected that the Defendants would disclose, and not actively conceal, material facts about the existence of any defect that will result in expensive and non-ordinary repairs. The Defendants failed to do so.

The Plaintiff seeks relief for all other owners and/or lessees of the Affected Class Vehicles with the Charging Defect, including, inter alia, recovery of damages, repair and/or buy back under various provincial consumer protection legislation, breach of express warranty, breach of implied warranty of merchantability and reimbursement of all expenses associated with the repair and/or replacement of the Affected Class Vehicles.