Dusevic & Garcha has filed the within proposed automobile defect multi-jurisdictional class proceeding which involves allegations that certain model year Volkswagen and Audi-branded vehicles marketed, advertised, distributed, supplied, leased and/or sold by the Defendant, Volkswagen Group of Canada Inc., in Canada, including the Province of British Columbia, equipped with a defective autonomous emergency braking system ("AEB") such that it is prone to activating the brakes when there are no obstacles in the vehicle’s path, failing to activate when there are obstacles in the vehicle’s path, and/or distracting drivers with false warnings when no obstacles exist, all of which poses a real, substantial and imminent risk of harm or injury to vehicle occupants.

“Affected Class Vehicles” refers to the following model year VW and Audi-branded vehicles marketed, advertised, distributed, supplied, leased and/or sold by the Defendant, VWGoC, in Canada, including the Province of British Columbia, with the AEB System Defect:

VW MODEL

Arteon (2019-2025)

Atlas (2018-2025)

Atlas Cross Sport (2020-2025)

CC (2016-2017)

Golf (2016-2021)

Golf R (2016-2019 and 2022-2025)

Golf Sportwagen (2016-2019)

GTI (2016-2025)

e-Golf (2016-2019)

ID.4 (2021-2025)

Jetta (2016-2025)

Passat (2016-2025)

Taos (2022-2025)

Tiguan (2018-2025)

Touareg (2015-2017)

AUDI MODEL

A3 (2015-2020 and 2022-2025)

A4 (2013-2025)

A5 (2013-2025)

A6 (2012-2025)

A7 (2012-2025)

A8 (2011-2025)

Q3 (2019-2025)

Q5 (2013-2025)

Q7 (2017-2025)

Q8 (2019-2025)

e-tron (2019-2025)

e-tron Sportback (2020-2025)

e-tron quattro (2019-2025)

e-tron GT (2022-2025)

Q4 e-tron (2022-2025)

AEB systems are one of the most highly touted advancements in vehicle safety. These systems utilize input from various sensors, such as cameras and radar, installed in a vehicle to monitor the vehicle’s surroundings and detect obstacles in its path. If these systems detect any obstacles or dangers, they automatically apply the vehicle’s brakes by relaying this input from the vehicle’s various sensors to the appropriate control modules, such as the ABS Control Module, the Transmission Control Module (“TCM”), the Powertrain Control Module (“PCM”) (or Engine Control Module). With AEB systems a vehicle stops independently of driver input when it senses a crash is imminent to avoid a crash, or to reduce the severity of a crash that cannot be avoided. When working properly, AEB systems can reduce the incidence of collisions and resultant injuries. There are both forward systems, which activate when the vehicle is driving forward, and rear systems, which activate when the vehicle is in reverse.

The AEB system is becoming increasingly standard on nearly every VW and Audi-branded vehicle. Despite the Affected Class Vehicles having different versions of the AEB system, each utilizes the same or substantially identical core vehicle components, and as such, the AEB System Defect is the same for all Affected Class Vehicles.

In order to make sure the AEB system in the Affected Class Vehicles works as intended and advertised, the Defendant, VWGoC, must ensure that the component systems and/or sensors sourced from various third-party suppliers communicate properly. For example, sensors on the front of the vehicle, produced by parts suppliers such as Robert Bosch LLC, must communicate information to the ABS to apply the brakes, the TCM to shift the car into the proper gear, and the PCM to limit power from the engine so that the vehicle is no longer propelled forward. Calibrating these systems to work together properly is the responsibility of the vehicle manufacturer.

Due to the AEB System Defect, the Affected Class Vehicles are predisposed to slowing or stopping suddenly without driver input when there are no obstacles in front or behind the vehicle. These unexpected events increase the likelihood of collisions. Conversely, the AEB system in the Affected Class Vehicles can also fail to activate in the exact situations it was designed to detect and mitigate, such as when a pedestrian or vehicle stops abruptly in front of the vehicle. As a result, the AEB System Defect makes the AEB system unpredictable and driving the Affected Class Vehicles unsafe, while at the same time rendering the AEB system unresponsive when it is most needed.

Based on pre-production testing, including design failure mode analysis, early warranty claims, replacement part orders, and consumer complaints to the Defendant’s, VWGoC’s, authorized network of dealers, as well complaints to vehicle safety regulators such as the United States National Highway Traffic Safety Administration (“NHTSA”) and Transport Canada, the Defendant, VWGoC, was aware of the AEB System Defect in Audi-branded Affected Class Vehicles as early as 2013, and in the VW-branded Affected Class Vehicles as early as 2015. Despite being aware of the AEB System Defect, the Defendant, VWGoC, knowingly, actively and affirmatively omitted and concealed the existence of the AEB System Defect in advertising and manuals to increase profits by selling additional Affected Class Vehicles at inflated prices.

The Defendant, VWGoC, knew about the AEB System Defect present in the Affected Class Vehicles, along with the attendant safety problems, and concealed this information from the Plaintiff and putative class members at the time of sale, lease, repair, and thereafter. In fact, instead of repairing the Affected Class Vehicles, the Defendant, VWGoC, has insisted that the vehicles are working as designed. Moreover, information about the AEB System Defect was wrongfully, fraudulently and/or intentionally concealed from the Plaintiff and putative class members.

Further, the Defendant, VWGoC, acknowledged the AEB System Defect in the Affected Class Vehicles in a series of Technical Service Bulletins (“TSBs”), Technical Tips (“TTs”), and other such technical service publications, which described the issue to its exclusive network of authorized dealerships as early as February 2013.

The Defendant, VWGoC, has heavily advertised the safety of the Affected Class Vehicles equipped with the AEB system.

In marketing, advertising, distributing, suppling, leasing and/or selling the Affected Class Vehicles, the Defendant, VWGoC, engaged in unfair, deceptive, and/or misleading consumer practices, and further breached its express and/or implied warranties.

The AEB System Defect poses a real, substantial and imminent risk of harm or injury to vehicle occupants, and others on the road, as it can impact the driver’s ability to control the Affected Class Vehicle, and though consumers have complained about it, the Defendant, VWGoC, has failed and/or refused to adequately address, remedy and/or fix the AEB System Defect.

As a result of the alleged misconduct of the Defendant, VWGoC, the Plaintiff and putative class members were harmed and suffered actual damages. The Plaintiff and putative class members did not receive the benefit of their bargain; rather, they purchased and/or leased vehicles that are of a lesser standard, grade and quality than represented, and they did not receive vehicles that met ordinary and reasonable consumer expectations regarding safe and reliable operation. Purchasers and/or lessees of the Affected Class Vehicles paid more, either through a higher purchase price or lease payments, than they would have had the AEB System Defect been disclosed. 

The Plaintiff and putative class members also suffered damages in the form of, inter alia, out-of-pocket costs of repair and/or replacement, rental car costs, towing costs, overpayment, and/or diminished value of the Affected Class Vehicles.

No reasonable consumer would have purchased and/or leased an Affected Class Vehicle had the Defendant, VWGoC, made full and complete disclosure of the AEB System Defect, or would have paid a lesser price. The Defendant, VWGoC, failed to disclose, at the time of purchase and/or lease, the AEB system’s tendency to malfunction or function as intended.

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

The Plaintiff seeks relief for all other current and/or former owners and/or lessees of the Affected Class Vehicles with the AEB System Defect, including, inter alia, recovery of damages, repair and/or buyback, under provincial consumer protection legislation, breach of express warranty, breach of implied warranty or conditions of merchantability, and reimbursement of all expenses associated with the repairing, remedying and/or repairing of the AEB System Defect in the Affected Class Vehicles.