In a Boston District US Court, a settlement has been reached with Volkswagen and Audi which sees them paying 100 % of the maintenance costs for certain models of the VW Passat 1.8T and Audi A4 that have been plagued by engine sludge problems. Models between the years 1997 and 2004 will be eligible to receive this benefit and the exact details of the settlement will be finalized during a hearing on the 11th March 2011.
The sludge build up problem was prominent even when the cars were maintained regularly and the correct oil was used. This prompted VW and Audi to extend the powertrain warranty of the cars to 8 years with unlimited mileage, however according to the plaintiffs many of the sludge claims were denied.
According to the suit, owners of the abovementioned models of Passat and Audi will receive a full maintenance if they can prove that there have been regular oil changes, otherwise a 50 % cover is offered. The vehicle warranty will also be extended further to 10 years or 120,000 miles particularly for the oil sludge problems.