Toyota Diadang Mass Litigation in America due to Automatic Transmission Problems

Toyota Grand Highlander 2024. (Photo: Toyota)

JAKARTA - Toyota is once again facing legal issues in the United States. The Japanese manufacturer is sued through three new class actions that highlight the UA80 eight-speed automatic transmission.

Launching from Carscoops, Wednesday, February 18, in the lawsuit, this transmission is accused of being prone to early damage. As a result, it triggers concerns about long-term durability as well as resale value of the vehicle.

After two similar lawsuits previously surfaced, the latest case is now being filed in the US District Court for the District of New Jersey. This step indicates that the problem is no longer limited to one region.

The lawsuit covers a number of models, ranging from the 2017 Toyota Highlander to vehicles still on the market today such as the Lexus TX 350, so that the scope of the impact is considered quite broad.

The lawsuit document mentions two main defects in the transmission.

Both defects are even called "essentially dangerous", because they have the potential to make vehicles behave unpredictably. Complaints submitted include gear shift failure, sudden slippage, fluid leaks, rough gear shifts, the appearance of burning odors, strange noises, and loss of power while driving.

Another lawsuit highlights the impact of the defect on the vehicle's service life and its appeal in the market. Transmission problems are claimed to have emerged long before the normal ownership period ended, thus harming consumers.

One of the plaintiffs, James LaBoutheller, owner of a 2020 Toyota Camry XSE, claimed to have heard an abnormal sound from his car's transmission. The Toyota dealer then stated that the transmission had to be replaced.

Although Toyota was willing to provide a new transmission unit, the installation cost was not covered. As a result, LaBoutheller had to pay for the labor costs himself, which amounted to thousands of dollars.

In the complaint it is explained that the first damage is mechanical, namely excessive heat inside the gearbox which accelerates wear and reduces the quality of transmission fluid. The second problem is related to software, which is accused of triggering gear shifts too early and activating the torque converter clutch before its time, thus burdening internal components.

The plaintiffs claim that Toyota actually knew about this problem during the endurance testing phase, even before the transmission was installed on consumer vehicles. However, the company is considered to have ignored various warning signals over the years, including internal data, customer complaints, dealer service records, and safety submissions to the government.

Instead of improving, Toyota is said to have implemented a software update that actually accelerates wear and tear in pursuit of fuel efficiency. In addition, Toyota is accused of continuing to convince customers that their vehicles are functioning normally.

Meanwhile, warranty claims are often rejected when the vehicle mileage exceeds a certain limit, even though the initial complaint appears when the mileage is still low. LaBoutheller is now trying to represent owners and renters of various affected Toyota and Lexus models throughout the US, as well as demanding a jury trial, damages, restitution, and a court order.

In December last year, a separate class action lawsuit was also filed in California by Neil Pallaya, owner of a 2020 Toyota Highlander with a 3.5-liter V6 engine with an UA80E transmission. He complained of a high-pitched hissing sound that appeared constantly at a mileage of about 67,000 miles.

The dealer diagnosed total transmission failure, but because the warranty had expired, Pallaya was offered a replacement cost of more than 7,400 US dollars for a unit that he believed had a similar defect. Pallaya assessed that the problem stemmed from a fundamental design error and called Toyota's failure to provide a meaningful solution.

The California lawsuit expands the list of vehicles potentially affected, including the following models:

Toyota Highlander 2017-present Toyota Grand Highlander 2024-present Toyota Camry 2018-2024 Toyota Sienna 2017-2020 Toyota Avalon 2019-2022 Toyota RAV4 2019-present Lexus RX 350 2023-present Lexus ES 250 2021-present Lexus ES 350 2019-present Lexus NX 250 and NX 350 2022-present Lexus TX 350 2024-present