Introduction
The automotive industry has been at the center of some of the largest and most impactful class action lawsuits in recent history. From emissions scandals that affected millions of vehicles to safety defects that put consumers at risk, these cases have resulted in billions of dollars in settlements and have fundamentally changed how car manufacturers operate.
In this article, we'll explore major automotive class actions and recalls, examining their causes, outcomes, and the lessons they've taught both the industry and consumers. We'll also provide guidance on how vehicle owners can determine if they're eligible for compensation from these settlements and how to claim what they're owed.
Major Emissions Scandals
Perhaps the most notorious automotive class action in recent history is the Volkswagen "Dieselgate" scandal. In 2015, it was discovered that Volkswagen had installed "defeat devices" in their diesel vehicles that could detect when emissions testing was being conducted and temporarily reduce emissions to pass the tests. In normal driving conditions, these vehicles emitted up to 40 times the legal limit of nitrogen oxides.
The fallout was immense. Volkswagen ultimately agreed to settlements totaling over $20 billion in the United States alone, including:
- Vehicle buybacks and compensation for affected owners
- Funds for environmental remediation projects
- Investments in zero-emission vehicle infrastructure
- Civil penalties paid to government agencies
Similar emissions scandals have affected other manufacturers, including Mercedes-Benz, Fiat Chrysler, and General Motors, resulting in their own class action settlements and recalls.
Safety Defect Class Actions
Safety-related defects have led to some of the most serious automotive class actions. The Takata airbag recall—the largest automotive recall in history—affected over 100 million vehicles worldwide across many manufacturers. These airbags could explode when deployed, sending metal fragments into the vehicle cabin. The defect has been linked to numerous fatalities and injuries, leading to multiple class action settlements.
Other notable safety defect class actions include:
- GM ignition switch defect: Faulty ignition switches could shut off the engine while driving, disabling safety features like airbags and power steering. GM ultimately paid over $2 billion in settlements and penalties.
- Toyota unintended acceleration: A class action alleged that electronic issues caused vehicles to accelerate uncontrollably. Toyota settled for $1.2 billion and implemented significant safety improvements.
- Ford PowerShift transmission failures: Owners of certain Ford Focus and Fiesta models filed class actions over defective dual-clutch transmissions that caused shuddering, delayed acceleration, and sudden power loss.
Fuel Economy Misrepresentation
Several manufacturers have faced class actions for overstating the fuel economy of their vehicles. In 2019, Ford faced a class action lawsuit claiming it had misrepresented fuel economy ratings for its F-150 trucks and potentially other vehicles. Hyundai and Kia previously settled similar claims for $41 million after the EPA found they had overstated fuel economy by up to 6 mpg on certain models.
These cases highlight how marketing claims about vehicle performance can lead to significant legal liability when they don't match real-world performance. Consumers who purchased or leased affected vehicles often received compensation based on increased fuel costs over the vehicle's expected lifetime.
How to Join an Automotive Class Action
If you own or lease a vehicle affected by a class action settlement, you typically don't need to do anything to "join" the lawsuit. When a settlement is reached, the manufacturer is usually required to notify all registered owners of affected vehicles. However, to receive your compensation, you will need to:
- Stay informed: Check your mail and email for official notices about settlements related to your vehicle.
- Verify eligibility: Determine if your specific vehicle model, year, and configuration are covered by the settlement.
- File a claim: Complete and submit the required claim forms by the deadline.
- Keep documentation: Maintain records of your vehicle ownership, repairs, and any communications related to recalls or defects.
Future Trends in Automotive Litigation
As automotive technology evolves, new types of class actions are emerging. Some areas to watch include:
- Autonomous driving features: As semi-autonomous and autonomous driving systems become more common, litigation over system failures and accuracy of marketing claims is increasing.
- Electric vehicle range: Similar to fuel economy cases, class actions over exaggerated electric vehicle range claims are being filed.
- Software and cybersecurity: As vehicles become more computerized, class actions related to software defects and security vulnerabilities are likely to increase.
- Subscription features: The trend toward charging subscription fees for vehicle features may lead to new types of consumer class actions.
Conclusion
Automotive class actions serve as a powerful tool for holding manufacturers accountable and ensuring consumers receive compensation when vehicles don't perform as promised or contain dangerous defects. These lawsuits have not only provided financial redress to millions of vehicle owners but have also driven improvements in vehicle safety, emissions standards, and manufacturer transparency.
If you own a vehicle, it's worth staying informed about potential class actions that might affect you. Resources like GetBack can help ensure you never miss out on settlements you're entitled to, allowing you to recover money for repairs, diminished value, or other damages caused by automotive defects or misrepresentations.