A class action lawsuit has been filed against Toyota concerning the design flaws of their UA80 eight-speed automatic transmission. The lawsuit claims that the transmission suffers from overheating and premature gear shifting, accelerating the wear of internal components, reducing vehicle durability, and negatively impacting market value. Plaintiffs argue that Toyota was aware of these issues during testing and from customer complaints, yet limited itself to software updates, which plaintiffs believe worsened transmission wear in pursuit of better fuel economy. Consequently, owners face costly repairs shortly after the warranty expires.
For example, the owner of a 2020 Toyota Highlander reported that after 108,000 km (67,108 miles) the transmission failed, and replacement would cost over $7,400. Another owner of a 2020 Toyota Camry stated that after unusual noises were diagnosed as a transmission fault, while he received compensation for a new transmission, he had to pay thousands out-of-pocket for labor.
The lawsuit covers almost all major petrol and hybrid Toyota and Lexus models, including the Camry (2018–2024), Highlander (2017–present), RAV4 (2019–present), Sienna (2017–2020), Avalon (2019–2022), as well as the recent models of Lexus ES 350, RX 350, NX, and TX 350.
This scenario is not entirely new for Toyota. Historically, similar lawsuits have arisen in the automotive sector where manufacturers tackle design defects. Toyota has previously addressed such issues with varied strategies, sometimes opting for settlements, while other incidents have resulted in complete recall campaigns. Recently, the company has been proactive in addressing customer complaints, possibly aiming to mitigate the impact of legal battles. Such cases also put financial pressures on manufacturers, influencing stock prices and market perception.
Looking at current trends in the industry, other automakers are also revisiting their transmission designs to bolster reliability and customer trust. The outcome of this lawsuit could set a precedent for future cases, shaping industry-wide practices regarding how design flaws are handled.
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