Case 2:16-cv-02765-JLL-JAD Document 6 Filed 08/22/16 Page 1 of 203 PageID: 442

James E. Cecchi Lindsey H. Taylor CARELLA, BYRNE, CECCHI, OLSTEIN, BRODY & AGNELLO, P.C. 5 Becker Farm Road Roseland, New Jersey 07068 Telephone: (973) 994-1700

[Additional Attorneys on Signature Page]

Attorneys for Plaintiffs and the proposed Classes

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

DAVID ZIMAND, DENA STOCKALPER, Civil Action No. 16 -2765 (JLL)(JAD) DAWN STANTON BLANCHARD, JAY MELMAN, CHRIS DRAKE, ANOUSHIRVAN

NADIRI, JENNIFER PIUMARTA, WILLIAM R. SWIHART, HANNAH LeMOINE, RAFAEL SERBIA, LUIS F. LOPEZ, SHIMELESSE MEKBEB, ROBBY SMITH, KATRINA CALIHAN, ERIKA SENSNOVIS, GARRETT JOHNSON, NEEL MODY, JASON HOSIER, FIRST CONSOLIDATED DEBRA ANN HAGGERTY, DEBRA J. OLES, CLASS ACTION COMPLAINT AND DEMAND FOR JURY TRIAL DAVID ZHAO, SUZANNE NOYES, HAMZA DEIB, ROSARIO PANEPINTO, JAMES I. SCOTT IV, JEFFERY PIPE, MICHAEL A. BORCHINO, JOHN SCHAFFRANEK, PAMELA K. KANE, ZACHARIAH GOSSMAN, KARL MOLWITZ, ALLAN GAUDET, UMAR ELLAHIE, ALLISON FLECK, WILLIAM FLECK and BARTOSZ ZIELEZINSKI on behalf of themselves and all others similarly situated,

Plaintiffs,

v.

VOLKSWAGEN AKTIENGESELLSCHAFT, VOLKSWAGEN GROUP OF AMERICA, INC., AKTIENGESELLSCHAFT and AUDI OF AMERICA, INC.,

Defendants.

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TABLE OF CONTENTS

Page

I. INTRODUCTION ...... 1 II. JURISDICTION AND VENUE ...... 7 III. PARTIES ...... 8 IV. FACTUAL ALLEGATIONS ...... 23 A. The EA888 Engine ...... 23 B. Timing Chain Systems ...... 25 C. The Defective Timing Chain System ...... 28 D. Defendants’ Knowledge of the Timing Chain System Defect...... 34 1. Technical Service Bulletins ...... 36 2. National Highway Traffic Safety Administration Complaints ...... 39 3. The Chain Tensioner Redesign ...... 45 V. FURTHER ALLEGATIONS...... 49 VI. TOLLING OF THE STATUTE OF LIMITATIONS ...... 64 VII. CLASS ACTION ALLEGATIONS ...... 65 VIII. CLAIMS FOR RELIEF ...... 74 IX. PRAYER FOR RELIEF ...... 198 X. DEMAND FOR JURY TRIAL ...... 199

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The allegations herein are based on personal knowledge as to Plaintiffs’ own conduct and are made on information and belief as to all other matters based on an investigation by counsel: 1

I. INTRODUCTION

1. Plaintiffs David Zimand (“Zimand”), Dena Stockalper (“Stockalper”), Dawn

Stanton Blanchard (“Blanchard”), Jay Melman (“Melman”), Chris Drake (“Drake”),

Anoushirvan Nadiri (“Nadiri”), Jennifer Piumarta (“Piumarta”), William R. Swihart (“Swihart”),

Hannah LeMoine (“LeMoine’), Rafael Serbia (“Serbia”), Luis F. Lopez (“Lopez”), Shimelesse

Mekbeb (“Mekbeb”), Robby Smith (“Smith”), Katrina Calihan (“Calihan”), Erika Sensnovis

(“Sensnovis”), Garrett Johnson (“Johnson”), Neel Mody (“Mody”), Jason Hosier (“Hosier”),

Debra Ann Haggerty (“Haggerty”), Debra J. Oles (“Oles”), David Zhao (“Zhao”), Suzanne

Noyes (“Noyes”), Hamza Deib (“Deib”), Rosario Panepinto (“Panepinto”), James I. Scott, IV

(“Scott”), Jeffery Pipe (“Pipe”), Michael A. Borchino (“Borchino”), John Schaffranek

(“Schaffranek”), Pamela K. Kane (“Kane”), Zachariah Gossman (“Gossman”), Karl Molwitz

(“Molwitz”), Allan Gaudet (“Gaudet”), Umar Ellahie (“Ellahie”), Allison Fleck (“A. Fleck”),

William Fleck (“W. Fleck”) and Bartosz Zielezinski (“Zielezinski”) (collectively, “Plaintiffs”)

bring this class action against Volkswagen Aktiengesellschaft (“VWAG”), Volkswagen Group

of America, Inc. (“VW America”) (together, “VW”), Audi Aktiengesellschaft (“Audi AG”), and

Audi of America, Inc. (“Audi America”) (together, “Audi”) (collectively, “Defendants”),

individually and on behalf of all persons in the United States who purchased, own, owned, lease

or leased a 2008 through 2013 model year 2.0L TSI or 2.0L TFSI VW or Audi vehicle

1 Counsel’s investigation includes an analysis of publicly available information, including Defendant’s Technical Service Bulletins, National Highway Traffic Safety Administration documents and consumer complaints, as well as expert analysis of the defective and redesigned timing chain tensioners and timing chains, field investigations conducted by counsel, and additional analysis. Plaintiffs believe that a reasonable opportunity for discovery will provide further support for the claims alleged herein.

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containing the defective Timing Chain System as defined below (the “Class Vehicles”), for

Defendants’ violations of common and statutory law and concealment of a known defect in the

Class Vehicles.

2. Defendants wrongfully and intentionally concealed a defect in the timing chain system (the “Timing Chain System”) of the Class Vehicles, which can fail at any time, forcing

Plaintiffs and members of the Classes (defined below) to incur out of pocket costs to repair or replace the damaged engine parts or their entire engine. 2 At a minimum, repairs will exceed

$1,000.00. In some cases, repairs can cost thousands of dollars.

3. The Timing Chain System is comprised, inter alia , of the sprockets,

camshaft chain, camshaft chain hydraulic tensioner, timing gear-tensioning rail and timing gear

chain rails. The system is depicted in the figure at paragraph 78, infra . Class engines use a

hydraulic timing chain tensioner actuated by engine oil pressure to regulate tension on the timing

chain tensioning rail that applies tension to the timing chain. This tension keeps the timing chain

from jumping the teeth on the sprockets that are attached to the and and

maintains synchronization between rotating engine components including the valves and

. Without proper timing chain tension and synchronization, the engine will run very

poorly (if at all) and/or, if sufficient chain skip and mis-synchronization occur, its failure to

function properly will cause cylinder valves and pistons to collide, resulting in severe internal

damage to the engine.

2 The Timing Chain System contains a device known as a “hydraulic chain tensioner” that is designed to keep the camshaft and crankshaft sprockets properly engaged and synchronized by taking up chain slack and applying a certain level of force on the tensioning rail. The Timing Chain System is comprised of the hydraulic chain tensioner, timing chain, chain sprockets, guide rails and tensioning rail, inter alia . See the figure at paragraph 78, infra . As explained in detail below, the Timing Chain System fails before the end of the useful life of the engine as the result of a defect in design, material, manufacturing and/or workmanship (the “Timing Chain System defect”).

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4. The Timing Chain System defect also presents a significant safety risk for

Plaintiffs and members of the Classes because when the Timing Chain System suddenly and

unexpectedly fails, Class Vehicles lose engine power, which causes a loss in the ability to

accelerate, maintain speed, and/or adequately control the steering wheel or fully engage the

brakes. Thus, drivers and occupants of the Class Vehicles are at risk for rear-end collisions and

other accidents as a result of Defendants’ failure to disclose the existence of the Timing Chain

System defect and corresponding safety risk.

5. Despite Defendants’ knowledge of the Timing Chain System defect, Defendants

have never disclosed to Plaintiffs and members of the Classes that the defect exists or that drivers

and occupants of the Class Vehicles are at risk. Notwithstanding the fact that the Timing Chain

System should operate normally in vehicles for at least 120,000 driven miles, on information and

belief, Defendants have refused to repair or replace the Timing Chain System outside of the time

periods covered by the manufacturer’s warranties. Thus, Defendants have wrongfully and

intentionally transferred the cost of repair or replacement of the Timing Chain System to

Plaintiffs and members of the Classes by fraudulently concealing the existence of the defect,

which Defendants know will typically occur after the expiration of the warranties. Repairs can

range in cost from approximately $1,200.00 (to replace the tensioner and timing chain) up to

approximately $10,000.00 (to replace the entire engine).

6. The Class Vehicles are equipped with engines, known as EA888 engines, that

contain the defective Timing Chain System. As a result of the defect, the EA888 engines are

prone to premature failure before the end of the useful life of the engine and before 120,000

driven miles—the lowest number of miles Defendants recommend for regularly scheduled

maintenance. Defendants designed, manufactured, imported, distributed, marketed and/or sold

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Class Vehicles with the defective Timing Chain System. On information and belief, the EA888 engine with the defective Timing Chain System is contained in at least the following VW and

Audi Class Vehicles: 2008-2010 and 2012 VW Beetle; 2009-2013 VW CC; 2008-2012 VW

EOS; 2008-2012 VW Golf; 2008-2012 VW GTI; 2008-2012 VW Jetta; 2008-2012 VW Passat;

2008-2011 VW R32; 2008-2010 VW Rabbit; 2009-2012 VW Routan; 2008-2012 VW Tiguan;

2008-2013 VW Touareg; 2011 VW Touareg Hybrid; 2008-2012 Audi A3; 2008-2012 ;

2008-2012 Audi A5; 2010-2012 ; 2012 Audi A7; 2008-2012 Audi TT; 2010-2012 Audi

Q3; 2009-2012 Audi Q5; and 2012 Audi Q7.

7. The Audi A3 and VW Class Vehicles are equipped with EA888 2.0L TSI engines designated with engine codes CCTA or CBFA. These engines were introduced in the United

States in the 2008 model year. The remaining Audi Class Vehicles are equipped with EA888

2.0L TFSI engines designated with engine codes CAEB, CAEA, or CDNC. The engines designated with these five codes are all versions of the EA888 engine and all use the same

Timing Chain System.

8. Based on Defendants’ representations in the USA Warranty and Maintenance schedules for the Class Vehicles, the Timing Chain System is expected to last for the useful life of the engine or at least 120,000 miles without the need for maintenance, repair or replacement.

For example, owners and lessees of Class Vehicles were provided owner’s manuals and USA

Warranty and Maintenance schedules that do not show any Timing Chain System inspection or maintenance within the first 120,000 miles. 3 Indeed, the Timing Chain System is omitted from

the maintenance schedules.

3 See Exhibit A (summarizing maintenance schedule and not showing any scheduled Timing Chain System maintenance for 120,000 miles); see also Exhibit B (not showing any scheduled Timing Chain System maintenance for 130,000 miles); Exhibit C (excerpts of pages 28-42 from

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9. Defendants provide warranty coverage for Class Vehicles under one or more manufacturer’s warranties. For illustrative purposes, Defendants currently provide: (1) a New

Vehicle Limited Warranty that includes “virtually bumper to bumper coverage for 3 years or

36,000 miles, whichever occurs first” or 4 years or 50,000 miles, whichever occurs first; and/or

(2) a Powertrain Limited Warranty for “5 years or 60,000 miles whichever occurs first” which covers “all internal [engine] parts.” Under warranties provided to members of the Classes,

Defendants promised to repair or replace defective Class Vehicle engine components arising out of defects in materials and/or workmanship, such as the Timing Chain System defect, at no cost to owners or lessees of the Class Vehicles. These warranties were provided in Class Vehicle window labels, owner’s manuals and brochures, and advertised on Defendants’ websites.

10. Defendants breached their express and implied warranties through which they promised to, inter alia , (1) provide Class Vehicles fit for the ordinary purpose for which they were sold; and (2) repair and correct manufacturing defects or defects in materials or workmanship of any parts they supplied, including the Timing Chain System. Because the

Timing Chain System defect was present at the time of sale or lease of the Class Vehicles,

Defendants are required to repair or replace the Timing Chain System under the terms of the warranties. Further, given the latent nature of the Timing Chain System defect, Defendants knew or should have known that the majority of Timing Chain System failures likely would occur outside of the warranty periods and have wrongfully transferred the costs of repair or replacement to Plaintiffs and members of the Classes through Defendants’ fraudulent concealment of the defect. These costs are significant and range in the thousands of dollars, and

VW USA Warranty and Maintenance, CC, EOS, GTI, Golf, Tiguan, Touareg, Model Year 2011, showing no scheduled Timing Chain System maintenance within the first 130,000 miles).

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no reasonable consumer expects to incur such costs during the useful life of the engine given

Defendants’ representations in the USA Warranty and Maintenance schedules.

11. Knowledge and information regarding the Timing Chain System defect was in the

exclusive and superior possession of Defendants and their dealers, and was not provided to

Plaintiffs and members of the Classes, who could not reasonably discover the defect through due

diligence. Based on pre-production testing, design failure mode analysis, and consumer

complaints to dealers, inter alia , Defendants were aware of the premature failure of the Timing

Chain System in the Class Vehicles and fraudulently concealed the defect from Plaintiffs and

members of the Classes.

12. Defendants misrepresented the standard, quality or grade of the Class Vehicles

and knowingly, actively, and affirmatively concealed the existence of the Timing Chain System

defect to increase profits and decrease costs by selling additional Class Vehicles and transferring

the costs of repair or replacement of the Timing Chain System to owners and lessees of the Class

Vehicles, including Plaintiffs and members of the Classes. On information and belief,

Defendants have acknowledged the Timing Chain System defect by releasing several Technical

Service Bulletins (“TSBs”) describing the issue to their exclusive network of dealerships

beginning in or around June 2010.

13. Plaintiffs and members of the Classes assert claims against Defendants for fraud,

breach of express and implied contractual duties, negligent misrepresentation, breach of express

and implied warranties, violation of The Magnuson-Moss Warranty Act, 15 U.S.C. § 2301 et

seq ., unjust enrichment, and violations of consumer fraud and unfair and deceptive trade

practices statutes under the laws of New Jersey, Arkansas, California, Connecticut, Colorado,

Florida, Georgia, Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada, New

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Hampshire, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas and

Washington.

14. Defendants knowingly omitted, concealed and suppressed material facts regarding the defective Timing Chain System and its corresponding safety risk, and misrepresented the standard, quality or grade of the Class Vehicles, which directly caused harm to Plaintiffs and members of the Classes. As alleged herein, Defendants’ wrongful conduct has harmed owners and lessees of the Class Vehicles, and Plaintiffs and members of the Classes are entitled to damages and injunctive and declaratory relief.

15. As a direct result of Defendants’ wrongful conduct, Plaintiffs and members of the

Classes have suffered damages, including, inter alia : (1) out-of-pocket expenses for repair or replacement of the Timing Chain System, other engine parts, or the entire engine; (2) costs for future repairs or replacements; (3) sale of their vehicle at a loss; and/or (4) diminished value of their vehicles.

II. JURISDICTION AND VENUE

16. This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1332(d)(2).

The matter in controversy, exclusive of interest and costs, exceeds the sum or value of

$5,000,000 and is a class action in which there are more than 100 members of the Classes, members of the Classes (as defined below) are citizens of states different from Defendants, and greater than two-thirds of the members of the Classes reside in states other than the states in which Defendant is a citizen. This Court has jurisdiction over supplemental state law claims pursuant to 20 U.S.C. § 1367 and jurisdiction over the Magnuson-Moss Warranty Act claim by virtue of diversity jurisdiction being exercised under the Class Action Fairness Act (“CAFA”).

17. Venue properly lies in this District pursuant to 28 U.S.C. § 1391(a), (b) and (c)

because VW America is incorporated in New Jersey, and Defendants have marketed, advertised,

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sold, and/or leased the Class Vehicles within this District through numerous dealers doing business in the District. Defendants’ actions have caused harm to Plaintiff Drake, a New Jersey resident, as well as hundreds of members of the Classes residing in New Jersey. VW America and Audi America maintain the following offices and/or facilities in New Jersey: (1) the

“VW/Audi VCI Eastern Region” in Woodcliff, New Jersey; (2) the “EEO, Audi Test Fleet” in

Allendale, New Jersey; (3) the “Product Liaison Group” in Ridgefield, Edgewater and Allendale,

New Jersey; (4) and the “Parts/Region Distribution Center” in Cranbury, New Jersey. 4

Accordingly, Defendants have sufficient contacts with this District to subject Defendants to personal jurisdiction in the District and venue is proper.

III. PARTIES

Plaintiffs

18. Plaintiff Zimand is a citizen of the State of New Jersey and resides in Englewood,

New Jersey. On or around April 13, 2009, Plaintiff Zimand leased a 2009 VW Jetta Wolfsburg

Edition with a 2.0L TSI engine from a VW and Audi authorized dealer, Jack Daniels Motors

Inc., in Fairlawn, New Jersey for personal or household use. In 2012, Plaintiff Zimand purchased the vehicle from the same dealer for personal or household use.

19. Unbeknownst to Plaintiff Zimand at the time of lease in 2009 and purchase in

2012, Plaintiff Zimand’s vehicle contained the Timing Chain System defect.

20. On or around March 5, 2014, Plaintiff Zimand’s 2009 VW Jetta experienced the

Timing Chain System defect, which caused catastrophic failure of the vehicle’s engine. The

vehicle was brought to the dealer for service, and Plaintiff Zimand informed the dealer that the

4 See About Us, Locations, Volkswagen Group America, http://www.volkswagengroup america.com/locations.html (last visited May 3, 2016).

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vehicle cranks but will not start. The dealer noted: “Compression Found Ok. Check Fuel

Pressure Found Ok. Check Engine Timing Found Off Marks. Found Chain Stretched and

Tensioned Collapsed. Replace Cam Chain, Tensioned, Guide, Bridge. Reset DTC. Road Test.”

21. As a result of the Timing Chain System defect, Plaintiff Zimand was forced to replace the camshaft, chain, chain tensioner, brackets, valves, and numerous other engine parts.

Plaintiff Zimand was forced to incur certain out of pocket expenses for these repairs, and did not have use of his vehicle for two weeks.

22. Plaintiff Stockalper is a citizen of the State of Arkansas and resides in

Fayetteville, Arkansas. On December 11, 2012, Plaintiff Stockalper purchased a 2012 VW EOS

Lux equipped with a 2.0L TSI EA888 engine in Springdale, Arkansas. One or more Defendants provided the following manufacturer’s warranties on Plaintiff Stockalper’s vehicle: (1) a New

Vehicle Limited Warranty that includes “virtually bumper to bumper coverage for 3 years or

36,000 miles, whichever occurs first” and (2) a Powertrain Limited Warranty for “5 years or

60,000 miles whichever occurs first” which covers “all internal [engine] parts.” Under these warranties, Defendants promised to repair or replace defective engine components arising out of defects in materials and/or workmanship, such as the Timing Chain System defect, at no cost to

Plaintiff Stockalper.

23. Unbeknownst to Plaintiff Stockalper, at the time of purchase through present,

Plaintiff Stockalper’s vehicle contained the defective Timing Chain System. Given this latent defect, Plaintiff Stockalper’s vehicle is subject to sudden, unexpected failure of the Timing

Chain System at any time. Defendants have never informed Plaintiff Stockalper of the Timing

Chain System defect and corresponding safety risk associated with her vehicle.

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24. Plaintiff Melman is a citizen of the State of New York and resides in Lindenhurst,

New York. On or around November 18, 2009, Plaintiff Melman bought a 2010 VW Tiguan equipped with a 2.0L TSI engine in New York for personal or household use.

25. Unbeknownst to Plaintiff Melman, at the time of purchase through present,

Plaintiff Melman’s vehicle contained the defective Timing Chain System. Given this latent defect, Plaintiff Melman’s vehicle is subject to sudden, unexpected failure of the Timing Chain

System at any time. Defendants have never informed Plaintiff Melman of the Timing Chain

System defect and corresponding safety risk associated with his vehicle.

26. Plaintiff Drake is a citizen of the State of New Jersey and resides in Lake

Hopatcong, New Jersey. Plaintiff Drake purchased a 2010 VW GTI equipped with a 2.0L TSI

engine from an authorized VW dealer. Plaintiff Drake’s vehicle sustained severe engine damage

related to the Timing Chain System failure in April 2016. Plaintiff Drake incurred considerable

expense repairing his vehicle’s engine. Plaintiff Drake lost the use of his Class Vehicle during

substantial periods of time and incurred expenses in obtaining alternative transportation.

27. Plaintiff Nadiri is a citizen of the State of California and resides in Garden Grove,

California. In late 2011, Plaintiff Nadiri purchased a new 2011 VW GTI equipped with a 2.0L

TSI engine from an authorized VW dealer that was covered under an existing warranty. Plaintiff

Nadiri’s vehicle sustained severe engine damage related to the Timing Chain System failure in

2016. Plaintiff Nadiri incurred considerable expense repairing his vehicle’s engine. Plaintiff

Nadiri lost the use of his vehicle during substantial periods of time and incurred expenses in

obtaining alternative transportation.

28. Plaintiff Piumarta is a citizen of the State of California and resides in San

Francisco, California. In 2014, Plaintiff Piumarta purchased a certified pre-owned 2010 Audi A3

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equipped with a 2.0L TFSI engine from an authorized Audi dealer. In May 2016, Plaintiff

Piumarta’s vehicle sustained engine damage related to the Timing Chain System failure.

Plaintiff Piumarta incurred considerable expense repairing her vehicle’s engine. Plaintiff

Piumarta lost the use of her vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

29. Plaintiff Swihart is a Citizen of the State of California and resides in Escondido,

California. In late 2011, Plaintiff Swihart purchased a 2009 Audi A4 Avant equipped with a

2.0L TSI engine from an authorized Audi dealer that was covered under an existing warranty.

Plaintiff Swihart’s vehicle sustained severe engine damage related to the Timing Chain System failure in February 2016. Plaintiff Swihart incurred considerable expense repairing his vehicle’s engine. Plaintiff Swihart lost the use of his vehicle during substantial periods of time.

30. Plaintiff LeMoine is a citizen of the State of Colorado and resides in Fort Collins,

Colorado. Plaintiff LeMoine purchased a 2010 Audi A3 equipped with a 2.0L TSI engine.

Plaintiff LeMoine’s vehicle sustained severe engine damage related to the Timing Chain System failure in March 2016. Plaintiff LeMoine incurred considerable expense repairing her vehicle’s engine. Plaintiff LeMoine lost the use of her vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

31. Plaintiff Serbia is a citizen of the state of Connecticut and resides in Milford,

Connecticut. Plaintiff Serbia purchased a new 2011 VW GTI equipped with a 2.0L TSI engine from an authorized VW dealer. Plaintiff Serbia’s vehicle sustained severe engine damage related to the Timing Chain System failure in July 2015. Plaintiff Serbia incurred considerable expense repairing his vehicle’s engine. Plaintiff Serbia lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

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32. Plaintiff Blanchard is a citizen of the State of Florida and resides in Miami,

Florida. On or around August 20, 2010, Plaintiff Blanchard leased a 2011 VW CC equipped with a 2.0L TSI engine from an authorized VW dealer, South Motors Volkswagen, 5 in Miami,

Florida for personal or household use. On or around August 5, 2013, Plaintiff Blanchard

purchased the vehicle from the same dealer for personal or household use.

33. Unbeknownst to Plaintiff Blanchard at the time of lease in 2010 and purchase in

2013, Plaintiff’s vehicle contained the defective Timing Chain System. In late 2014 to early

2015, a check engine light began appearing on the dashboard of Plaintiff Blanchard’s VW CC.

Plaintiff Blanchard brought her vehicle to the authorized VW dealer at least three times for service to address the check engine light issue. At each service, the dealer refused to check the

Timing Chain System, misdiagnosed the issue, and charged Plaintiff Blanchard for repairs unrelated to the Timing Chain System.

34. On or around April 23, 2016, Plaintiff Blanchard’s VW CC experienced the

Timing Chain System failure. The driver of the vehicle stopped for gas and was unable to restart the vehicle. The VW CC was towed to a local automotive service center for repair. At that time,

Plaintiff Blanchard’s 2011 VW CC had approximately 63,895 miles, and was outside of the periods for the manufacturer’s warranties.

35. The Timing Chain System failure caused catastrophic damage to the engine in

Plaintiff Blanchard’s vehicle. Plaintiff Blanchard was forced to replace the crankshaft, pistons, cylinder head, timing chain, and numerous other engine parts. Because the Timing Chain

System failure occurred outside of the periods for the manufacturer’s warranties, Plaintiff

5 South Motors Volkswagen is an “Authorized Volkswagen Sales and Service Center.” About Us, South Motors Volkswagen, http://www.southvw.com/about-south-motors-volkswagen-in- miami-fl (last visited May 6, 2016).

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Blanchard was forced to pay out of pocket for all of the repairs. In addition to towing expenses and expenses related to previous repairs, Plaintiff Blanchard paid $3,873.74 on April 23, 2016 for repairs associated with the Timing Chain System failure.

36. Plaintiff Lopez is a citizen of the State of Florida and resides in Lutz, Florida.

Plaintiff Lopez purchased a 2009 A4 Quattro equipped with a 2.0L TFSI engine. Plaintiff

Lopez’s vehicle sustained severe engine damage related to the Timing Chain System failure in

December 2015. Plaintiff Lopez incurred considerable expense repairing his vehicle’s engine.

Plaintiff Lopez lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

37. Plaintiff Mekbeb is a citizen of the State of Florida and resides in Orlando,

Florida. Plaintiff Mekbeb purchased a 2009 VW Jetta with a 2.0L TSI engine. Plaintiff

Mekbeb’s vehicle sustained severe engine damage related to the Timing Chain System failure in early 2016. Plaintiff Mekbeb incurred considerable expense repairing his vehicle’s engine.

Plaintiff Mekbeb lost the use of his Class Vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation

38. Plaintiff Smith is a citizen of the State of Georgia and resides in Duluth, Georgia.

Plaintiff Smith purchased a certified pre-owned 2010 A4 equipped with a 2.0L TFSI engine in

February 2013 from an authorized Audi dealer. Plaintiff Smith’s Timing Chain System failed in

May 2016 at approximately 80,000 miles. Smith incurred considerable expense repairing his vehicle’s engine. Plaintiff Smith lost the use of his Class Vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

39. Plaintiff Sensnovis is a citizen of the State of Illinois and resides in Chicago,

Illinois. Plaintiff Sensnovis purchased a certified pre-owned 2011 Tiguan equipped with a 2.0L

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TSI engine in March 2014 from an authorized VW dealer. Plaintiff Sensnovis’ vehicle sustained severe engine damage related to the Timing Chain System failure in June 2016 at 77,500 miles.

Sensnovis incurred considerable expense repairing her vehicle’s engine. Plaintiff Sensnovis lost the use of her Class Vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

40. Plaintiff Calihan is a citizen of the State of Illinois and resides in Chicago,

Illinois. Plaintiff Calihan purchased a certified pre-owned 2010 Tiguan equipped with a 2.0L

TSI engine in December 2012 from an authorized VW dealer. Plaintiff Calihan’s vehicle sustained severe damage related to a Timing Chain System failure in June 2016 at 50,800 miles.

Calihan incurred considerable expense repairing her vehicle’s engine. Plaintiff Calihan lost the use of her Class Vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

41. Plaintiff Johnson is a citizen of the State of Indiana and resides in Martinsville,

Indiana. Plaintiff Johnson purchased a 2009 Audi A4 equipped with a 2.0L TFSI engine.

Plaintiff Johnson’s vehicle sustained severe engine damage related to the Timing Chain System failure in July 2016 at approximately 81,000 miles. Plaintiff Johnson incurred considerable expense repairing his vehicle’s engine. Plaintiff Johnson lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

42. Plaintiff Mody is a citizen of the State of Kansas and resides in Overland Park,

Kansas. Plaintiff Mody purchased a new 2012 VW Tiguan equipped with a 2.0L TSI engine from an authorized VW dealer. Plaintiff Mody’s vehicle sustained severe engine damage related to the Timing Chain System failure in April 2016 at approximately 74,000 miles. Plaintiff Mody incurred considerable expense repairing his vehicle’s engine. Plaintiff Mody lost the use of his

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vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

43. Plaintiff Haggerty is a citizen of the State of Michigan and resides in Detroit,

Michigan. Plaintiff Haggerty purchased a new 2012 VW CC equipped with a 2.0L TSI engine from an authorized VW dealer. Plaintiff Haggerty’s vehicle sustained severe engine damage related to the Timing Chain System failure in February 2016. Plaintiff Haggerty incurred considerable expense repairing her vehicle’s engine. Plaintiff Haggerty lost the use of her vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

44. Plaintiff Zhao is a citizen of the State of Minnesota and resides in Bloomington,

Minnesota. Plaintiff Zhao purchased a new 2012 Audi Q5 equipped with a 2.0L TFSI engine

from an authorized Audi dealer. Plaintiff Zhao’s vehicle sustained severe engine damage related

to the Timing Chain System failure in May 2016. Plaintiff Zhao incurred considerable expense

repairing his vehicle’s engine.

45. Plaintiff Noyes is a citizen of the State of New Hampshire and resides in

Manchester, New Hampshire. Plaintiff Noyes purchased a 2012 VW Tiguan equipped with a

2.0L TSI engine. Plaintiff Noyes’ vehicle sustained severe engine damage related to the Timing

Chain System failure in March 2016. Plaintiff Noyes incurred considerable expense repairing

her vehicle’s engine. Plaintiff Noyes lost the use of her vehicle during substantial periods of

time and incurred expenses in obtaining alternative transportation.

46. Plaintiff Deib is a citizen of the State of New York and resides in Bay Shore, New

York. Plaintiff Deib purchased a 2010 Audi A4 equipped with a 2.0L TFSI engine. Plaintiff

Deib’s vehicle sustained severe engine damage related to the Timing Chain System failure in

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2016. Plaintiff Deib incurred considerable expense repairing his vehicle’s engine. Plaintiff Deib lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

47. Plaintiff Hosier is a citizen of the State of Maryland and resides in Sparrows

Point, Maryland. In August 2012, Plaintiff Hosier purchased a 2010 VW Tiguan equipped with

a 2.0L TSI engine and with a certified pre-owned warranty from an authorized VW dealer.

Plaintiff Hosier’s vehicle sustained severe engine damage related to the Timing Chain System

failure in January 2016. Plaintiff Hosier incurred considerable expense repairing his vehicle’s

engine. Plaintiff Hosier lost the use of his vehicle during substantial periods of time and incurred

expenses in obtaining alternative transportation.

48. Plaintiff Panepinto is a citizen of the State of New York and resides in Bayside,

New York. Plaintiff Panepinto purchased a 2009 VW Jetta equipped with a 2.0L TSI engine

from an authorized VW dealer. Plaintiff Panepinto’s vehicle sustained severe engine damage

related to the Timing Chain System failure in March 2016. Plaintiff Panepinto incurred

considerable expense repairing his vehicle’s engine. Plaintiff Panepinto lost the use of his

vehicle during substantial periods of time and incurred expenses in obtaining alternative

transportation.

49. Plaintiff Oles is a citizen of the State of North Carolina and resides in

Jacksonville, North Carolina. Plaintiff Oles purchased a 2008 VW Passat equipped with a 2.0L

TSI engine from an authorized VW dealer. Plaintiff Oles’ vehicle sustained severe engine

damage related to the Timing Chain System failure in 2012. Plaintiff Oles incurred considerable

expense repairing her vehicle’s engine. Plaintiff Oles lost the use of her vehicle during

substantial periods of time and incurred expenses in obtaining alternative transportation.

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50. Plaintiff Scott is a citizen of the State of Ohio and resides in Columbus, Ohio.

Plaintiff Scott purchased a 2011 VW GTI equipped with a 2.0L TSI engine from an authorized

VW dealer. Plaintiff Scott’s vehicle sustained severe engine damage related to the Timing Chain

System failure in January 2016. Plaintiff Scott incurred considerable expense repairing his vehicle’s engine. Plaintiff Scott lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

51. Plaintiff Pipe is a citizen of the State of Pennsylvania and resides in Homestead,

Pennsylvania. Plaintiff Pipe purchased a new 2009 Audi A4 equipped with a 2.0L TFSI engine from an authorized Audi dealer. Plaintiff Pipe’s vehicle sustained severe engine damage related to the Timing Chain System failure in April 2016. Plaintiff Pipe incurred considerable expense repairing his vehicle’s engine. Plaintiff Pipe lost the use of his vehicle during substantial periods of time and incurred towing expenses.

52. Plaintiff Borchino is a citizen of the State of South Carolina and resides in

Traveler Rest, South Carolina. Plaintiff Borchino purchased a new 2012 VW CC equipped with a 2.0L TSI engine from an authorized VW dealer. Plaintiff Borchino’s vehicle sustained severe engine damage related to the Timing Chain System failure in June 2016. Plaintiff Borchino incurred considerable expense repairing his vehicle’s engine. Plaintiff Borchino lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

53. Plaintiff Schaffranek is a citizen of Pennsylvania and resides in Pittsburgh,

Pennsylvania. Plaintiff Schaffranek purchased a 2010 VW CC in October 2013. Plaintiff

Schaffranek’s vehicle suffered severe engine damage related to the Timing Chain System failure

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on or about June 2016. Plaintiff Schaffranek incurred significant economic damage in repairing his vehicle’s engine and lost the use of his vehicle during the repair period.

54. Plaintiff Kane is a citizen of the State of Texas and resides in San Antonio, Texas.

In 2009, Plaintiff Kane purchased a new 2010 Audi A4 equipped with a 2.0L TFSI engine from an authorized Audi dealer in 2009. Plaintiff Kane’s vehicle sustained severe engine damage related to the Timing Chain System failure in June 2016. Plaintiff Kane incurred considerable expense repairing her vehicle’s engine. Plaintiff Kane lost the use of her vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

55. Plaintiff Gossman is a citizen of the State of Washington and resides in Seattle,

Washington. In December 2014, Plaintiff Gossman purchased a 2009 Audi A4 equipped with a

2.0L TFSI engine. Plaintiff Gossman’s vehicle sustained severe engine damage related to the

Timing Chain System failure in June 2016. Plaintiff Gossman incurred considerable expense repairing his vehicle’s engine. Plaintiff Gossman lost the use of his vehicle during substantial periods of time and incurred expenses in obtaining alternative transportation.

56. Plaintiff Molwitz is a citizen of the State of Connecticut and resides in Ridgefield,

Connecticut. On or about November 6, 2009, Molwitz purchased a pre-owned 2009 Volkswagen

Tiguan from Danbury Volkswagen in Danbury, Connecticut. Molwitz purchased the vehicle primarily for his personal, family, and/or household purposes.

57. In or about September 2015, Plaintiff Molwitz was driving his Tiguan when the timing chain tensioner failed resulting in engine shut down. Fortunately, Plaintiff Molwitz was able to bring his vehicle to a safe stop without sustaining any injuries, but the results of this incident could have been deadly.

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58. Plaintiff Molwitz’s Tiguan was diagnosed as having suffered from the Timing

Chain System defect. Molwitz contacted VW America and requested that the repair be covered under warranty free of charge. However, VW America denied his request for warranty and/or goodwill coverage. As a result, Plaintiff Molwitz brought his vehicle to a third-party repair facility and had the repairs done at a cost of approximately $8,000.

59. Plaintiff Gaudet is a citizen of the State of Connecticut and resides in Bristol.

Plaintiff Gaudet entered into a contract for a 2011 Volkswagen GTI from Crowley Volkswagen in Plainville, Connecticut on January 1, 2011.

60. On May 5, 2016, Plaintiff Gaudet was driving near his home in Connecticut when his vehicle catastrophically failed. Plaintiff pulled over to the side of the road, connected a diagnostic tool, and ran a diagnostic check on his vehicle and received error code P0016 that corresponds with a camshaft/crankshaft correlation failure. Plaintiff then had his vehicle towed to back to the dealership.

61. The dealership informed Plaintiff Gaudet that the timing chain tensioner in his vehicle failed and that the timing chain tensioner, timing chain, the camshaft, and the crankshaft needed to be replaced. The dealership declined warranty repairs and informed Plaintiff Gaudet it would cost approximately $3,650.00 in parts and labors to repair Plaintiff’s vehicle. The dealership offered to pay for a portion of the repair as a goodwill gesture, resulting in Plaintiff paying $813.00 to have his vehicle repaired.

62. Plaintiff Ellahie is a citizen of California and resides in Los Gatos. Plaintiff

Ellahie entered into a contract for a 2010 Volkswagen CC from Sunnyvale Volkswagen in

Sunnyvale, California in or about April 2013. Plaintiff’s vehicle came with a certified pre- owned warranty.

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63. On or about July 6, 2015, Plaintiff Ellahie was driving near his home in Los Gatos when his vehicle catastrophically failed. Plaintiff Ellahie pulled over to the side of the road and had his vehicle towed to back to the dealership. The dealership informed Plaintiff Ellahie that the timing chain tensioner in his vehicle failed and that the timing chain tensioner, timing chain, and the cylinder head assembly needed to be replaced.

64. Plaintiff informed the dealership that he kept his vehicle properly maintained and

asked the dealership to repair his vehicle under warranty. The dealership declined warranty

repairs and informed Plaintiff it would cost $7,856.45 in parts and labors to repair Plaintiff’s

vehicle. The dealership offered to pay for a portion of the repair as a goodwill gesture, resulting

in Plaintiff paying approximately $2,000.00 to have his vehicle repaired.

65. Plaintiffs A. Fleck and W. Fleck (the “Fleck Plaintiffs”) are citizens of the State

of Florida, currently residing in Florida. In February of 2015, the Fleck Plaintiffs purchased a

2012 Volkswagen EOS, which, up to that point, they had been leasing, from Volkswagen of

Freehold, in Freehold, New Jersey. The Fleck Plaintiffs purchased the car in February of 2015

for approximately $20,000. Unbeknownst to the Fleck Plaintiffs, at the time of purchase in

2015, their vehicle contained the defective Timing Chain System.

66. In May of 2016, the Fleck Plaintiffs’ 2012 Volkswagen EOS experienced a

Timing Chain System failure, which caused a catastrophic failure of the vehicle’s engine. As a

result of the Timing Chain System defect, the Fleck Plaintiffs were forced to incur approximately

$7,000 in out of pocket expenses.

67. Plaintiff Zielezinski is a citizen of the State of Nevada and resides in Las Vegas,

Nevada. In April of 2014, Plaintiff Zielezinski purchased a 2012 Audi A5 from AutoNation

Volkswagen in Las Vegas, Nevada, for approximately $40,000. Unbeknownst to Plaintiff

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Zielezinksi, at the time of purchase in 2014, Plaintiff’s vehicle contained the Timing Chain

System defect.

68. In May of 2016, Plaintiff Zielezinski’s 2012 Audi A5 experienced a Timing

Chain System failure, which caused a catastrophic failure of the vehicle’s engine. As a result of the Timing Chain System defect, Plaintiff Zielezinski was forced to incur approximately $6,000 in out of pocket expenses.

69. None of the advertisements reviewed or representations received by Plaintiffs and

members of the Classes contained any disclosure relating to the defect or premature failure of the

Timing Chain System in the Class Vehicles. Had Defendants disclosed that defects in the

Timing Chain System would require Plaintiffs to spend thousands of dollars to repair or replace

the Timing Chain System, other engine parts, and/or the engine, Plaintiffs would not have

purchased their vehicles, or would have paid less for their respective vehicles.

70. When Plaintiffs and members of the Classes purchased and/or leased their Class

Vehicles, they reasonably relied on the reasonable expectation that the Class Vehicles’ Timing

Chain Systems would last beyond the warranty periods without need for repair or replacement

and/or would not pose an unavoidable safety risk. Had Defendants disclosed that the Timing

Chain System was prone to premature failure and/or an unavoidable safety risk, Plaintiffs and

Members of the Classes would not have purchased or leased the Class Vehicles, or would have

paid less for their vehicles. Further, had Defendants disclosed that the Timing Chain Systems in

the Class Vehicles would not last beyond the warranty periods without need for repair or

replacement, Plaintiffs and members of the Classes would have demanded repair or replacement

during the warranty periods at no cost to Plaintiffs and members of the Classes—as provided for

in Defendants’ warranties. Defendants represented that the class engine timing chain and

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associated components such as the chain tensioner and rails would be maintenance free up to and including 120,000 miles.

71. The Class Vehicles were operated in a reasonably foreseeable manner and as the vehicles were intended to be used. Plaintiffs and members of the Classes have suffered an ascertainable loss as a result of Defendants’ deceptive conduct, breach of contractual, common law and statutory duties, and omissions and/or misrepresentations associated with the Timing

Chain System defect, including but not limited to, out-of-pocket losses and/or the costs of future repairs or replacements, and diminished performance and value of their respective vehicles.

72. Neither Defendants nor any of their agents, dealers, or other representatives

informed Plaintiffs and members of the Classes of the premature failure of the Timing Chain

System and/or the defective nature of the Timing Chain System prior to the purchase or lease of

the Class Vehicles.

Defendants

73. Defendant VWAG is a German corporation with its principal place of business in

Wolfsburg, Germany. VWAG is one of the largest automobile manufacturers in the world, and

is in the business of designing, developing, manufacturing, and selling automobiles. VWAG is

the parent corporation of VW America and Audi AG.

74. Defendant VW America is a New Jersey corporation doing business throughout

the United States. VW America’s corporate headquarters is located in Herndon, Virginia. VW

America is a wholly-owned U.S. subsidiary of VWAG, and it engages in business activities in

furtherance of the interests of VWAG, including the advertising, marketing and sale of VW

automobiles nationwide.

75. Audi AG is a German corporation with its principal place of business in

Ingolstadt, Germany and is a wholly-owned subsidiary of VW AG. Audi AG is the parent of

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Audi America and the Audi Group. Audi AG designs, develops, manufactures and sells luxury automobiles under the Audi brand name.

76. Audi America is a Delaware corporation with its principal place of business

located in Herndon, Virginia. Audi America is a wholly-owned U.S. subsidiary of Audi AG, and

it engages in business, including the advertising, marketing and sale of Audi automobiles

nationwide.

77. At all relevant times, VW America and Audi America acted as authorized agents,

representatives, servants, employees and/or alter egos of VW AG and Audi AG while

performing activities including but not limited to advertising, warranties, warranty repairs,

dissemination of technical information and monitoring the performance of VW and Audi

vehicles in the United States, including substantial activities that occurred within this

jurisdiction.

78. At all times relevant to this action, Defendants manufactured, distributed, sold,

leased, and warranted the Class Vehicles under the VW and Audi brand names throughout the

United States. Defendants and/or their agents designed, manufactured, and/or installed the

Timing Chain System in the Class Vehicles. Defendants and/or their agents also developed and

disseminated the owner’s manuals and warranty booklets, USA Warranty and Maintenance

schedules, advertisements, and other promotional materials relating to the Class Vehicles.

IV. FACTUAL ALLEGATIONS

A. The EA888 Engine

79. Defendants are major manufacturers of vehicles sold under the VW and Audi

brands throughout the United States. Defendants designed, manufactured, imported, distributed,

marketed, and/or sold the Class Vehicles in the United States. Defendants also provide service

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and maintenance for the Class Vehicles through their extensive network of authorized dealers and service providers nationwide.

80. Plaintiffs and members of the Classes purchased, leased, and/or own Class

Vehicles.

81. The Class Vehicles are equipped with 2.0L TSI or 2.0L TFSI EA888 engines

which were first introduced by Defendants for the 2008 model year. The EA888 engine contains

the defective Timing Chain System which is prone to premature failure, creating a safety risk and

forcing Plaintiffs and members of the Classes to pay thousands of dollars to repair or replace the

damaged engine parts or entire engine. The Audi A3 and VW Class Vehicles are equipped with

EA888 2.0L TSI engines designated with engine codes CCTA or CBFA. The remaining Audi

Class Vehicles are equipped with EA888 2.0L TFSI engines designated with engine codes

CAEB, CAEA or CDNC.

82. Among other updates from earlier engines, the EA888 engine is equipped with the

defective Timing Chain System as alleged herein. Prior to the introduction of the chain-driven

EA888 engine, VW and Audi used timing belts to synchronize the crankshaft and the camshafts.

According to the 2.0L TFSI Engine Self-Study, the “EA888 family of engines is replacing the

belt-driven camshaft engines within the Volkswagen Group world wide.” See Exhibit D at 1

(Audi self-study program of the TFSI Engine (the “TFSI Engine Self-Study”)). Thus, beginning for model year 2008, VW and Audi exclusively used timing chains to synchronize the operation of the crankshaft with the camshafts in 2.0L TSI and 2.0L TFSI engines.

83. Generally, a timing chain and a perform the same function, synchronizing the crankshaft with the camshaft(s). However, noise level, cost-savings, and maintenance considerations, among others, influence a vehicle manufacturer’s decision to use a

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timing chain or timing belt system. Timing chains usually last considerably longer than timing belts. For example, Defendants’ maintenance schedules require replacement of timing belts after a certain number of miles but do not require maintenance or replacement of the chain-driven

Timing Chain System. See Exhibits A and E.

84. According to Audi, the EA888 engine is the base model for both the 2.0L TSI and

the 2.0L TFSI. See Exhibit D at 1. According to the TFSI Engine Self-Study,

The turbocharged 2.0L 4V chain-driven AVS engine (CAEB) [the TFSI Engine] described in this Self-Study Program is a development of the 1.8L chain-driven engine (EA 888 family) introduced in Europe in 2006. The 1.8L engine, known as the Stage 0 engine, was the basis for the chain-driven 2.0L 4 cylinder engine (CCTA/CBFA) [the TSI Engine] introduced in North America during the 2008 model year.

Exhibit D at 1.

85. A comparison of the “Technical Description” sections of the TFSI Engine Self-

Study and the TSI Engine Self-Study (Exhibit F) demonstrates that both the 2.0L TFSI and the

2.0L TSI are “chain-driven” engines that utilize the same Timing Chain System.

86. The TFSI Engine Self-Study and the TSI Engine Self-Study include the same

terms in the Technical Description sections regarding the Timing Chain System, including that

the “Engine Block” features include: (1) “Cast iron crankcase”; (2) “Balancer shafts in

crankcase”; (3) “Forged steel crankshaft”; (4) “Sump-mounted oil pump—chain-driven by

crankshaft”; (5) “Timing gear chain—front end of engine”; and (6) “Balancer—chain-driven at

front end of engine.” Compare Exhibit D at 2 with Exhibit F at 1.

B. Timing Chain Systems

87. In order for a conventional four stroke internal combustion engine to function,

fuel and air must be mixed in a cylinder. The resulting “combustion” causes the (s) to

reciprocate and the crankshaft to rotate. Waste products of the combustion process are then

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removed to permit further combustion to occur. In a conventional gasoline powered automobile, the combustion occurs in an engine cylinder. The addition of fuel and air and the removal of combustion products must occur in a carefully regulated sequence to permit the engine to operate.

88. To regulate the addition of fuel and air and removal of byproducts, all Class

Vehicles contain a timing system that controls the timing of the opening and closing of the engine’s intake valves (responsible for releasing fuel and air into the engine cylinder) and exhaust valves (responsible for clearing the byproducts of combusted fuel and air). A timing chain connects the crankshaft (connected to the pistons) to the camshaft—which opens and closes the cylinder valves. The camshaft is designed to open and close the intake valves and exhaust valves in specifically timed intervals synchronized to the pistons.

89. The 2.0L TSI and the 2.0L TFSI, both EA888 four cylinder turbocharged gasoline engines, use a double overhead camshaft (“DOHC”) configuration with two camshafts connected to the crankshaft by a timing chain to ensure that the operating cycle is timed correctly. The

EA888 engine is an interference engine, which is a type of four-stroke engine in which one or more of the intake valves or the exhaust valves, in the fully open position, extend into the area into which the piston also travels. Thus, if the camshaft timing is sufficiently off due to a stretched, broken, or dislocated timing chain, catastrophic engine failure occurs because the pistons will slam into the valves, leading to damaged pistons or valves (or both) and requiring expensive repair or replacement of the engine. Figure 1, below, is a diagram of the labeled components of a DOHC engine with one dedicated camshaft to regulate the intake valves and one dedicated camshaft to regulate the exhaust valves.

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E: the exhaust P: the piston camshaft R: the Piston I: the intake camshaft C: the crankshaft S: the spark plug W: water jacket for V: the valves coolant flow

FIGURE 1

90. The four-stroke cycle is demonstrated by Figures 2 through 5 below.

FIGURE FIGURE 3 FIGURE 4 FIGURE 5 2

91. Figure 2 shows the intake camshaft depressing the intake valve so that the fuel and air mixture can enter into the piston combustion chamber. Figure 3 shows the intake valve

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camshaft and the exhaust valve camshaft disengaged from their respective valves so that the piston chamber is closed and the rising piston can compress the air and fuel right below the spark plug for optimal combustion. Figure 4 shows the spark plug combusting the compressed air and fuel mixture in the now sealed chamber to drive the piston down. And finally, Figure 5 shows the exhaust camshaft depressing the exhaust valve to open the valve so that the rising piston can expel the combusted air and fuel mixture. The same process repeats itself for all of a vehicle’s pistons in a synchronized fashion.

92. For this four-stroke cycle to operate as designed, the crankshaft and the camshafts

have to be connected so that piston movement and opening and closing of valves are fully

synchronized. A physical connection between the crankshaft and camshaft is typically

maintained through the use of a timing belt or a timing chain. The Class Vehicles use a timing

chain to make the connection between the crankshaft and the camshaft. When the timing system

fails, synchronization is lost and the four-stroke cycle will be disrupted causing an inability to

start, accelerate or maintain speed, immediate power loss and/or catastrophic engine failure.

When a piston drives into open valves, massive damage can be caused to the engine and it will

suddenly fail. Numerous dangerous conditions occur when the engine suddenly fails, including

that the power assisted brakes and power steering system may cease operating. Thus, additional

force is required to steer and stop the vehicle.

93. Thus, a properly functioning Timing Chain System is crucial to the safe and

reliable operation of the Class Vehicles.

C. The Defective Timing Chain System

94. Based on Defendants’ representations in the USA Warranty and Maintenance

schedules provided with the Class Vehicles, a Timing Chain System is intended and reasonably

expected to last for the useful life of the engine and at least 120,000 miles without the need for

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repair or replacement. According to the Class Vehicles’ maintenance schedules, the Timing

Chain System in the Class Vehicles is expected to last beyond the warranty periods and should not require maintenance during the useful life of the engine. For example, the Volkswagen 2009 maintenance schedule (for all models) does not require maintenance of the Timing Chain System within 130,000 miles (the highest number of miles shown in the maintenance schedule) and the

2010 maintenance schedule (for all models) does not require maintenance of the Timing Chain

System within 120,000 miles (the highest number of miles shown in the maintenance schedule).

See Exhibits A and B. Similarly, the Audi 2010 maintenance schedule (for all models) does not require maintenance of the Timing Chain System within 125,000 miles (the highest number of miles shown in the maintenance schedule) and 2011 maintenance schedule (for all models) do not require maintenance of the Timing Chain System within 135,000 miles (the highest number of miles shown in the maintenance schedule). See Exhibits E and G. Thus, the failure of the

Timing Chain System in the Class Vehicles occurs prematurely and before any reasonable consumer would expect the failure to occur.

95. The figure below depicts the Timing Chain System in the 2.0L TSI and the 2.0L

TFSI:

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FIGURE 6

96. One part that has been identified as the source of the defect in the Timing Chain

System is labeled the “Hydraulic Tensioner, Camshaft Chain Drive” (the “Chain Tensioner”) in the above illustration. The Chain Tensioner is an internal engine component that automatically controls tension on the timing chain and prevents it from skipping. The Chain Tensioner is critical because if tension is not maintained on the timing chain, the chain can “jump a tooth” on a camshaft drive sprocket and set off a chain reaction—causing bent valves, extensive damage to engine parts, and, ultimately, catastrophic failure of the engine.

97. The Chain Tensioner controls tension by utilizing oil pressure augmented by an internal spring to push an integrated piston with a controlled force against a timing chain tensioning rail that presses against the chain and keeps it in proper tension. There is only oil pressure, however, when the vehicle is turned on and the engine is running. When the vehicle is

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turned off and during startup, when there is no oil pressure or oil pressure is low, the Chain

Tensioner uses a mechanical mechanism to keep the piston from collapsing and releasing the

tension in order to keep the chain tight. The following photographs of the defective Chain

Tensioner (part number 06H 109 467 N) 6 obtained from a Class Vehicle highlight the main parts

of the Chain Tensioner:

FIGURE 7 FIGURE 8

FIGURE 9 FIGURE 10

6 Other versions of the chain tensioner have been identified by the following part numbers: 06H 109 467 AB and 06H 109 467 T.

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98. As shown in Figures 7, 8 and 9, the mechanical mechanism incorporates a steel retainer clip, piston retainer pin, ratchet pawl, and piston teeth to keep the piston in place when the vehicle is off and there is no oil pressure.

99. Plaintiffs retained a consultant with a Ph.D. in mechanical engineering and an extensive engineering mechanical design background to conduct a preliminary analysis of the

Timing Chain System, including the Chain Tensioner. Plaintiffs’ consultant analyzed a defective

Chain Tensioner that was taken from a Class Vehicle that experienced engine failure as a result of the defective Timing Chain System. Plaintiffs’ consultant determined that the ratchet pawl failed and caused the tension on the timing chain to be lost when the engine was off, allowing the timing chain to “jump a tooth” during startup, leading to bent intake valves and catastrophic engine failure.

100. According to Plaintiffs’ consultant, the Chain Tensioner uses a ratchet pawl mechanism to prevent the tensioner piston from collapsing inward into the tensioner body when the engine is shut off and oil pressure is not pushing the piston out. The design is such that the integrated piston incorporates ratchet teeth on its top side [Figure 9], and a detached pawl is held in a slot above the piston by a retaining clip [Figure 8 and Figure 9]. Thus, if the small teeth on the pawl are broken or worn, or if the retaining clip fails to adequately hold the pawl in position, the piston does not hold the proper tension on the chain when the engine is off and during engine startup during the short time before engine oil pressure is built up to its normal level. As a result, the low tension on the chain can allow the chain to “jump a tooth” on a camshaft drive sprocket, causing the camshaft to be “out of time” with the crankshaft and pistons.

101. Thus, when the engine is “out of time,” valves will open and close at the wrong time, allowing the pistons to hit and bend the valves when the pistons come up on the

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compression stroke. This can lead to destruction of the timing chain and/or other engine parts, or

catastrophic engine failure.

102. Figure 11 below, demonstrates how the valves bend after being struck by the

piston:

FIGURE 11

103. According to Plaintiffs’ consultant, bent valves, as shown in Figure 11, are a very

significant repair item on an engine and cost thousands of dollars to repair.

104. No reasonable consumer expects to spend thousands of dollars to repair or replace

essential engine components (or the entire engine) during the useful life of the engine. Further,

Plaintiffs and members of the Classes do not reasonably expect their Timing Chain System to

fail before the end of the useful life of the engine ( see supra , ¶8 & n.3) or to pay to repair or

replace their Timing Chain System or engine in the event of a Timing Chain System failure. As

a direct result of Defendants’ wrongful conduct, Plaintiffs and members of the Classes have been

or will be forced to pay thousands of dollars to replace or repair the Timing Chain System, other

parts affected by the system’s failure, and/or the entire engine.

105. As detailed herein, Plaintiffs and members of the Classes also suffered diminished

market value and other damages related to their purchase or lease of the Class Vehicles as a

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direct result of Defendants’ material misrepresentations and omissions regarding the standard, quality or grade of the Class Vehicles and/or the existence of the Timing Chain System defect.

The fact that the Timing Chain System is prone to premature failure is material to Plaintiffs and members of the Classes both because it subjects Plaintiffs and members of the Classes to unexpected costs of repair or replacement ranging in the thousands of dollars, and because the sudden failure of the Timing Chain System presents a risk of injury and/or death to drivers and passengers of the Class Vehicles. The Timing Chain System is an integral component of the

2.0L TSI and 2.0L TFSI engines in the Class Vehicles and its failure can lead to the inability to accelerate or maintain speed and/or catastrophic engine failure. These types of failures subject drivers and passengers of the Class Vehicles to safety risks, including the potential for rear-end collisions and other accidents. As a result of Defendants’ material misrepresentations and omissions, including the failure to disclose that the Class Vehicles are prone to premature

Timing Chain System failure, Defendants have recklessly placed Plaintiffs and members of the

Classes and the occupants of the Class Vehicles at risk.

D. Defendants’ Knowledge of the Timing Chain System Defect

106. Defendants fraudulently, intentionally, negligently and/or recklessly concealed from Plaintiffs and members of the Classes the defects in the Class Vehicles even though

Defendants knew or should have known of design and manufacturing defects in Class Vehicles if

Defendants had adequately tested the Timing Chain Systems and engines in the vehicles.

107. Knowledge and information regarding the Timing Chain System defect were in

the exclusive and superior possession of Defendants and their dealers, and that information was

not provided to Plaintiffs and members of the Classes. Based on pre-production testing, pre-

production design failure mode analysis, production design failure mode analysis, early

consumer complaints made to Defendants’ network of exclusive dealers, aggregate warranty data

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compiled from those dealers, repair order and parts data received from the dealers, consumer complaints to dealers and the National Highway Traffic Safety Administration (“NHTSA”), and testing performed in response to consumer complaints, inter alia , Defendants were aware (or

should have been aware) of the premature failure of the Timing Chain System in the Class

Vehicles and fraudulently concealed the defect and safety risk from Plaintiffs and members of

the Classes. Defendants knew, or should have known, that the Timing Chain System defect was

material to owners and lessees of the Class Vehicles and was not known or reasonably

discoverable by Plaintiffs and members of the Classes before they purchased or leased Class

Vehicles, or before the warranties on their Class Vehicles expired.

108. Defendants had actual knowledge that design, manufacturing, materials and/or

workmanship defects were causing extensive irreversible premature performance degradation in

the Timing Chain Systems shortly after production of the Class Vehicles commenced.

Defendants engaged in extensive field research and quality investigations and analysis before

redesigning the specifications for the defective part, rebidding the new part and manufacturing

and distributing the new part. In addition, Defendants have and continue to be under a legal

obligation pursuant to federal law to monitor defects that can cause a safety issue and report

them within five (5) days of learning of them. Defendants therefore assiduously monitor the

NHTSA–ODI website and the complaints filed therein in order to comply with their reporting

obligations under federal law.

109. As recognized in the Class Vehicles’ owner’s manuals, Defendants knew that any

defect that can potentially lead to engine failure, such as the Timing Chain System defect,

presents a serious safety risk. Numerous dangerous conditions occur when the engine suddenly

fails, including that the power assisted brakes may cease operating and the power steering system

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fails. Thus, additional force is required to steer and stop the vehicle, and drivers and occupants are at risk for accidents.

110. Notwithstanding Defendants’ exclusive and superior knowledge of the Timing

Chain System defect, Defendants failed to disclose the defect to consumers at the time of

purchase or lease of the Class Vehicles (or any time thereafter) and continued to sell Class

Vehicles containing the defect through and including the 2013 model year. Defendants have

intentionally concealed that the Timing Chain System is defective, prone to premature failure

and presents a safety risk rather than disclosing this risk to consumers, including Plaintiffs and

members of the Classes, and the public.

1. Technical Service Bulletins

111. On information and belief, as a result of their exclusive and superior knowledge

regarding the defective Timing Chain System, Defendants released several TSBs describing the

issue to their exclusive network of dealerships beginning in or around June 2010.

112. On or around June 8, 2010, Defendants released a TSB (TSB-15-10-04)

describing timing chain issues with the following 2009 model year Audi Class Vehicles: Audi

A3; Audi A4; Audi TT. NHTSA summarized the TSB as follows: “AUDI: MIL ON; NOISE

FROM TIMING CHAIN (DTC P001600). MIL ON; ENGINE DIFFICULT TO START ;

SOMETIMES RATTLE IN ENGINE COMPARTMENT; BANK 1, CAMSHAFT POSITION

G40/CRANKSHAFT POSITION SENSOR G28, WRONG ASSIGNMENT STORED IN

ENGINE CONTROL UNIT, POSSIBLE DAMAGE TO CAMSHAFT OR CAMSHAFT BEAR

SURFACES. *PE.” Exhibit H (emphasis added).

113. On or around April 15, 2011, Defendants released a second TSB (TSB-15-11-21)

describing timing chain issues with the following 2009 model year Audi vehicles: Audi A3; Audi

A4; Audi TT. NHTSA summarized the TSB as follows: “VOLKSWAGEN: MALFUNCTION

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LIGHT IS ON AND THERE IS NOISE FROM THE TIMING CHAIN . ENGINE IS

DIFFICULT TO START AND THERE ARE TWO POSSIBLE TROUBLE CODES

STORED. THERE IS POSSIBLE DAMAGE TO THE CAMSHAFT. *RM.” Exhibit I

(emphasis added).

114. On or around July 23, 2012, VW released a TSB describing problems associated with the defective Timing Chain System in 2008-2013 model year vehicles with 2.0L CCTA and

CBFA engines. The TSB warned that owners or lessees of vehicles with the defective Timing

Chain System may experience: “ Engine Rattling Noises after Start, Engine Doesn’t Start,

Timing Chain Slipped .” Exhibit J at 1 (the “2012 TSB”).

115. The 2012 TSB applied to the following VW vehicles: 2008-2010 and 2012 VW

Beetle; 2009-2013 VW CC; 2008-2012 VW EOS; 2008-2012 VW Golf; 2008-2012 VW GTI;

2008-2012 VW Jetta; 2008-2012 VW Passat; 2008-2011 VW R32; 2008-2010 VW Rabbit;

2009-2012 VW Routan; 2008-2012 VW Tiguan; 2008-2013 VW Touareg; and 2011 VW

Touareg Hybrid.

116. Under Technical Background, the 2012 TSB states: “[t]iming chain tension may be incorrect due to tensioner” and “[a]s a result, the timing chain can skip and causing [sic] contact between the pistons and valves.” Id. at 1 (emphasis added).

117. At the time the 2012 TSB was released, dealers were instructed to repair the defective Timing Chain System when customers complained of (1) “[r]attling noises after engine start from front of vehicle or engine compartment”; (2) “[e]ngine does not start”; or (3) “MIL

ON.” Id. at 1.

118. The 2012 TSB included the two images below depicting the correct and incorrect position of the piston within the Chain Tensioner body. See id. at 3. In Figure 12, the Chain

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Tensioner piston is in the wrong position because it is retracted and incapable of exerting force

against the guide rail and timing chain—VW described it as “Timing chain tensioner incorrect.”

Id. In Figure 13, the Chain Tensioner piston is in the correct position because it is extended and

capable of exerting force against the guide rail and timing chain—VW described it as “Timing

chain tensioner correct.” Id.

FIGURE 12 FIGURE 13

119. The 2012 TSB superseded a previous TSB relating to the Timing Chain System

defect which was issued to VW dealerships on or around December 22, 2011 (T.B. V151104).

Minimal changes were made to the revised TSB, which simply removed “European exhaust

warning light reference in text” and added “additional model year applicability.” Id. Although

the 2011 TSB is not publically available, NHTSA summarized the TSB as follows:

“VOLKSWAGEN: CERTAIN MODELS ARE EXPERIENCING ENGINE NOT

STARTING, MAKING A RATTLING NOISE WHEN ENGINE HAS STARTED,

TIMING CHAIN KEEPS SLIPPING AND EXHAUST LIGHT COMES ON. *PE .”

Exhibit K (the “2011 TSB”).

120. According to NHTSA, the 2011 TSB applied to the following vehicles with 2.0L

TSI engines: 2008-2010 VW Beetle; 2009-2011 VW CC; 2008-2011 VW EOS; 2008-2011 VW

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Golf; 2008-2011 VW GTI; 2008-2011 VW Jetta; 2008-2010 VW Passat; 2008-2011 VW R32;

2008-2010 VW Rabbit; 2009-2011 VW Routan; 2008-2011 VW Tiguan; 2008-2011 VW

Touareg; and 2011 VW Touareg Hybrid.

121. Plaintiffs were never provided with copies of or information about the TSBs described above. Further, on information and belief, the TSBs were not directly communicated to consumers. Thus, despite the safety risk associated with the defective Timing Chain System, which Defendants recognized was in the majority of VW and Audi’s 2008-2013 2.0L TSI and

TFSI models, Defendants failed to disclose the defect to owners and lessees of the Class

Vehicles, including Plaintiffs and members of the Classes, and, instead, intentionally concealed the defect.

122. The TSBs, along with pre-production testing, pre-production design failure mode and analysis data, production design failure mode and analysis data, early consumer complaints made to Defendants’ network of exclusive dealers, aggregate warranty data compiled from those dealers, repair order and parts data received from the dealers, and testing performed in response to consumer complaints, evidence that since as early as 2008, Defendants have had exclusive and superior knowledge regarding the Timing Chain System defect. Further, Defendants gained their knowledge of the defect through sources not available to Plaintiffs and members of the Classes.

2. National Highway Traffic Safety Administration Complaints

123. In addition to the TSBs and other evidence of Defendants’ knowledge of the

Timing Chain System defect, Defendants have knowledge of the defect due to consumer complaints such as those made to the NHTSA, which Defendants should monitor as part of a continuous obligation to identify potential defects in their vehicles. 7

7 NHTSA-ODI does not share complainants’ personal information with the general public. A complaint is added to a public NHTSA database only after NHTSA removes all information

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124. Despite these complaints, Defendants have yet to issue a recall or even inform owners and lessees of the Timing Chain System defect and its safety risk. Defendants’ deceptive acts, misrepresentations and/or omissions regarding the Timing Chain System defect create a safety risk for drivers and occupants of the Class Vehicles and members of the public who may be involved in accidents with Class Vehicles that experience a Timing Chain System failure while they are being driven. When the Timing Chain System fails, the Class Vehicles can experience an inability to accelerate or maintain speed, or catastrophic engine failure causing the vehicle to come to a complete stop while driving, and increasing the risk of rear-end collisions and other accidents. The reasonable expectation that the Class Vehicles are safe and reliable to drive (and ride in) is and was material to Plaintiffs and members of the Classes at all relevant times.

125. Below is a small sample of consumer complaints made to NHTSA regarding failures of the Timing Chain System:

• Date Complaint Filed: 11/12/2014 Date of Incident: 10/21/2014 Component(s): ENGINE NHTSA ID Number: 10654587 Consumer Location: NEW LENOX, IL Vehicle MakeModelModel Year(s) VOLKSWAGENTIGUAN2009 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WVGAV75N29W...

SUMMARY:

from complaint fields that personally identify a complainant. NHTSA-ODI complaints are made by individuals who must identify themselves, enter detailed contact information and vehicle information (including an accurate VIN) before the complaints are reviewed and analyzed by NHTSA. There are penalties for submitting false statements.

40 Case 2:16-cv-02765-JLL-JAD Document 6 Filed 08/22/16 Page 43 of 203 PageID: 484

I BROUGHT MY TIGUAN IN DUE TO AN ENGINE LEAK AND TO HAVE AN ENGINE DIAGNOSTIC. THEY INDICATED THE MAIN REAR MAIN SEAL WAS LEAKING. 700 PLUS DOLLARS. REPAIRED THE SEAL THE LEAK STOPPED BUT THE LOW ENGINE PRESSURE LIGHT WOULD NOT GO OFF. THE THEN INDICATED THAT THE TENSIONER ARM WAS BAD AND THAT NEEDED TO BE REPLACED. I RECEIVED A CALL THE NEXT DAY THAT THE TENSIONER WAS BAD BUT THE TENSIONER CHAIN HAD WALKED OFF THE ROCKER ARM AND THAT THE ENGINE NEEDS TO BE REPLACED. I CALLED MULTIPLE TIMES TO VOLKSWAGEN CUSTOMER CARE MULTIPLE TIMES AND THEY RESPONDED THAT THEY CANT HELP WITH ANYTHING. I HAVE RESEARCHED THE TENSIONER ARM THROUGH GOOGLE AND FOUND PAGES AND PAGES OF BLOGS WITH PEOPLE THAT HAVE EXPERIENCED THE SAME ISSUE WITH THE TENSIONER ARM FAILING RESULTING IN ENGINE FAILURE. *TR

• Date Complaint Filed : 07/13/2015 Date of Incident : 07/07/2015 Component(s): ENGINE , UNKNOWN OR OTHER NHTSA ID Number: 10733776 Consumer Location : PFLUGERVILLE, TX Vehicle Make Model Model Year(s ) AUDI A4 2009 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WAUCF78K59N... Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0

SUMMARY:

THE TIMING CHAIN TENSIONER FAILED CAUSING THE AUDI INTERFERENCE ENGINE TO BECOME OUT OF SYNC RESULTING IN THE ENGINE BECOMING TOTALED. THIS HAS BECOME A COMMON OCCURRENCE AND IS WIDELY REPORTED ON 2009 AND NEWER MODELS. BELOW IS AN ARTICLE WITH THEIR ASSESSMENT OF THE SITUATION. THE CAR HAD BEEN TAKEN IN 2X FOR MISFIRES AND WAS DIAGNOSED AS AN ISSUE WITH THE SPARK PLUGS, IT IS NOW CLEAR THAT THIS WAS THE TIMING CHAIN BEING OUT OF ALIGNMENT AND MISSED. UPON THE ENGINE LIGHT COMING ON THE CAR WAS LEFT PARKED UNTIL THE DAY BEFORE THE SERVICE APPOINTMENT WHEN IT WAS TO BE DROPPED OFF AT THE SERVICE LOCATION, AT THAT TIME, UPON STARTING THE VEHICLE THE TIMING CHAIN TENSIONER FAILED AND CAUSED THE ENGINE TO FIRE OUT OF ALIGNMENT DAMAGING THE ENGINE. WHEN SPEAKING TO A MEMBER OF THE AUDI DEALERSHIP IT WAS SHARED THAT ANOTHER VEHICLE IS IN FOR THE SAME ISSUE AND THAT THEY ARE SEEING THIS OCCUR MORE AND MORE IN THEIR VEHICLES. THIS FAILURE IS ALSO REMINISCENT OF THE 2007 CLASS ACTION LAW SUIT

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WHICH PROMPTED AUDI TO MOVE FROM A TIMING BELT TO THE FOR THE SAME OUTCOME OCCURRING. HTTP://REDLINESPEEDWORX.COM/20TTSITIMINGCHAINFAILURE/ IF AUDI HAD PLACED OUT UPDATED PARTS, I WOULD LIKE TO KNOW WHY THERE WAS NO RECALL TO REPLACE THE PART OR ANYTHING MENTIONED BY THE MANUFACTURE INDICATING THE RELEASE OF UPDATED HARDWARE TO ADDRESS A "POTENTIAL ISSUE

• Date Complaint Filed: 11/08/2015 Date of Incident: 10/31/2015 Component(s): ENGINE NHTSA ID Number: 10789083 Consumer Location: PORTLAND, ME Vehicle MakeModelModel Year(s) VOLKSWAGENTIGUAN2010 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WVGBV7AX6AW...

SUMMARY:

WHILE DRIVING 25-30 MPH ON A CITY STREET, VEHICLE STOPPED ACCELERATING (MUCH LIKE RUNNING OUT OF GAS...) DEALER STATES TIMING CHAIN TENSIONER FAILED DESTROYING ENGINE-I UNDERSTAND VW HAS A TSB OUT ON THIS FOR YEARS AND THOUGH I SERVICED MY VEHICLE AT DEALER, NEVER KNEW OF THIS POTENTIAL PROBLEM

• Date Complaint Filed: 12/11/2015 Date of Incident: 12/05/2015 Component(s): ENGINE NHTSA ID Number: 10809622 Consumer Location: NEWNAN, GA Vehicle MakeModelModel Year(s) VOLKSWAGENEOS2010 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WVWFA7AH2AV...

SUMMARY:

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TL* THE CONTACT OWNS A 2010 VOLKSWAGEN EOS. WHILE ATTEMPTING TO TURN ON THE ENGINE, THE KEY FAILED TO START THE VEHICLE. THE VEHICLE HAD TO BE TOWED TO THE LOCAL MECHANIC WHO STATED THAT THE TIMING CHAIN FRACTURED AND THAT THERE WAS NO COMPRESSION. THE MECHANIC DIAGNOSED THAT THE TIMING CHAIN, VALVES, AND ENGINE NEEDED TO BE REPLACED. THE VEHICLE WAS NOT REPAIRED. THE MANUFACTURER WAS CONTACTED. THE APPROXIMATE FAILURE MILEAGE WAS 61,000.

• Date Complaint Filed: 12/19/2015 Date of Incident: 07/06/2015 Component(s): POWER TRAIN NHTSA ID Number: 10811243 Consumer Location: HOUSTON, TX Vehicle MakeModelModel Year(s) VOLKSWAGENTIGUAN2009 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WVGAV75N69W...

SUMMARY:

WHILE DRIVING WITH MY FOUR YEAR OLD IN THE BACKSEAT OF THE CAR, THE CAR SUDDENLY MISFIRED AND THE ENGINE ROUGH IDLED. THE CAR STALLED AT INTERSECTIONS AND IN THE MIDDLE OF THE ROAD. WE ALMOST GOT INTO AN ACCIDENT AS WE WERE DRIVING DOWN A CITY STREET, AS CARS BEHIND US HAD TO SWERVE OUT THE WAY WHEN OUR ENGINE STALLED. WE TOOK IT TO THE MECHANIC IMMEDIATELY, AS IT WAS CLEARLY HAZARDOUS TO HAVE ON THE ROAD, AND FOUND THAT A PISTON HAD MISFIRED AND STRETCHED THE TIMING CHAIN. THE CAR, A VW TIGUAN FROM 2009, WAS ONLY 6 YEARS OLD WHEN THIS EVENT OCCURRED.

• Date Complaint Filed: 02/03/2016 Date of Incident: 01/31/2016 Component(s): ENGINE NHTSA ID Number: 10823939 Consumer Location: BALTIMORE, MD Vehicle MakeModelModel Year(s) VOLKSWAGENTIGUAN2010 Crash: No Fire: No Number of Injuries: 0

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Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): Not Available

SUMMARY:

TL* THE CONTACT OWNS A 2010 VOLKSWAGON TIGUAN. WHILE DRIVING AT VARIOUS SPEEDS, THE VEHICLE BECAME UNRESPONSIVE AND THE ENGINE WOULD NOT OPERATE AS NORMAL. THE CHECK ENGINE LIGHT ILLUMINATED. THE VEHICLE WAS TOWED TO THE DEALER WHERE IT WAS DIAGNOSED THAT THE TIMING CHAIN TENSIONER BELT FAILED AND THE ENGINE WOULD NEED TO BE REPLACED. THE VEHICLE WAS NOT REPAIRED. THE MANUFACTURER WAS NOTIFIED. THE VIN WAS NOT AVAILABLE. THE FAILURE MILEAGE WAS 83,000

• Date Complaint Filed: 8/28/2015 Date of Incident: 8/21/2015 NHTSA ID Number: 10760009 Vehicle MakeModelYear(s) VOLKSWAGENTIGUAN2009 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0 Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): WVGBV95N29W…

SUMMARY:

WHILE DRIVING ON ROAD APROX. 40MPH THE VEHICLE SUDDENLY STOPPED RUNNING-HAD TO COAST TO SIDE AND TOW IT.WHEN TOWED TO VW DEALER -THEY SAID TIMING CHAIN TENSIONER FAILED AND IT'S COMMON PROBLEM.THEY EVEN HAD TSB FOR THAT.WHY THEY DON'T RECALL THIS SINCE THEY ARE AWARE OF IT.IF I WAS AT HIGHER SPEED ON INTERSTATE, I WOULD BE IN BIG TROUBLE.

• Date Complaint Filed: 1/22/2015 Date of Incident: 12/9/2014 Components: Engine NHTSA ID Number: 10678414 Consumer Location: Arvada, CO Vehicle MakeModelYear(s) VOLKSWAGENTIGUAN2010 Crash: No Fire: No Number of Injuries: 0 Number of Deaths: 0

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Manufacturer: Volkswagen Group of America, Inc. Vehicle Identification No. (VIN): VWGBV7AX5AW…

SUMMARY:

DRIVING ON FREEWAY AT 70 MPH AND EXPERIENCED FAILURE OF TIMING CHAIN TENSIONER. CAM SKIPPED CHAIN AND CAUSED PISTONS TO IMPACT VALVES. TOTAL AND COMPLETE ENGINE FAILURE THAT WAS SUDDEN AND UNEXPECTED AT HIGHWAY SPEED. MY RESEARCH FINDS THAT VW IS AWARE OF THIS PROBLEM BUT WILL NOT ISSUE A RECALL. *TR

3. The Chain Tensioner Redesign

126. With the exclusive and superior knowledge that the Chain Tensioner exhibited defects that caused the timing chain to skip a sprocket thereby disrupting the engine timing,

Defendants redesigned the Chain Tensioner in or around 2012. The redesigned chain tensioner

(the “Redesigned Tensioner”), part number 06K 109 467 K, is substantially different from the original defective Chain Tensioner. Figure 14 below, is a side by side comparison of the defective Chain Tensioner and the Redesigned Tensioner:

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Part Exhibiting Failures: Revised Design: 06H 109 467 N 06K 109 467 K

FIGURE 14

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127. According to Plaintiffs’ consultant, the two designs have substantial differences.

Most notably, in the defective Chain Tensioner, the ratchet pawl is accessible from the outside of the part, and it is retained in its position in the slot by the external steel retainer clip. In the

Redesigned Tensioner, the grooved tensioner piston and internal clip are contained inside the structure of the part and the external retainer clip has been eliminated. The piston is now covered by an end closure where it comes out of the housing, exhibiting a substantially different design configuration.

128. In the original design, the approximately 8 mm length ratchet pawl—used to

engage teeth cut into the top of the Chain Tensioner piston to maintain minimum tensioner force

on the timing chain tensioning rail when the engine is shut off and pressurized engine oil is no

longer forcing the tensioner piston outward—is made of sintered metal. Sintered metal is a type

of metal that has undergone a sintering process, in which powdered metal is directly turned into

forged metal by being heated beyond its melting point until the particles form a molecular bond,

as opposed to use of liquid metal in the forging process. Metals such as iron, copper, and

aluminum are commonly turned into sintered metal.

129. The sintered ratchet pawl in the defective Chain Tensioner is weaker than other

forged metal and likely prematurely fails. After as little as 50,000 miles, the teeth of the sintered

metal pawl become sufficiently worn and/or distorted and are no longer capable of properly

engaging the Chain Tensioner piston thus allowing the piston to retract into the tensioner

housing. See Figure 15 (tensioner pawl removed from failed 2.0L TSI Tensioner System).

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FIGURE 15

130. The defective Timing Chain System also incorporated a timing chain constructed

with alternating rows of link plate thicknesses, which likely allows the chain to stretch

excessively and introduce unanticipated slack into the Timing Chain System possibly

contributing to the failure in the Class Vehicles. As shown below, Defendants subsequently

redesigned this timing chain. See Figure 16 (new chain design on the left, old design on the

right).

FIGURE 16

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131. Based on a preliminary analysis of the defective Chain Tensioner and the

Redesigned Tensioner, Plaintiffs’ consultant determined that it is likely that a materially significant number of vehicles with the Chain Tensioner will experience early failures before the design life of the Chain Tensioner is attained. Given that the Chain Tensioner is integral to the engine and is time-consuming and expensive to replace, the design life of the Chain Tensioner is co-extensive with the design life of the engine. Based on his extensive experience, Plaintiffs’ consultant expects a properly designed chain tensioner and timing chain to last for a minimum of

150,000 miles before requiring replacement.

132. There are multiple blogs and websites maintained by automotive enthusiasts who have shared their class engine timing chain failure with other Class Vehicle owners and individuals. These sites have hundreds of entries and thousands of viewings concerning failed timing chain systems in class engines. 8 Independent Volkswagen and Audi vehicle repair shops

also have posted a description of the Timing Chain System failures on their websites. 9

V. FURTHER ALLEGATIONS

133. Defendants failed to inform Class Vehicle owners and lessees prior to purchase or

lease of the Class Vehicles during the express warranty period that the Timing Chain System was

defective and would fail shortly after the express warranty period expired. Defendants

misrepresented by affirmative conduct and/or by omission and/or by fraudulent concealment the

existence of the Timing Chain System defect in the Class Vehicles.

8 See, e.g., http://www.golfmk6.com/forums/showthread.php?t=47128 (last visited June 24, 2016). 9 See, e.g., http://www.minhsautocare.com/tsi-timing-chain/ (last visited June 24, 2016).

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134. Defendants also failed to inform Class Vehicle owners and lessees at the time of purchase or lease that the Timing Chain System in their Class Vehicles had been inadequately tested prior to placing the car in production and the time of vehicle sale or lease.

135. Defendants also failed to inform Class Vehicle owners that there had been several significant subsequent Chain Tensioner and chain design improvements as described in this complaint that reduced and/or eliminated premature Timing Chain System failure while purchasers’ vehicles were within the durational limitation of the express warranty period, including the powertrain limited warranty of “5 years or 60,000 miles whichever occurs first, from the date the vehicle was first placed in service.” 10 Specifically, this powertrain limited

warranty covered “all internal [engine] parts” including the Timing Chain System. This

warranty promised to repair or replace covered defective class engine components arising out of

defects in materials and/or workmanship for a period of 5 years or 60,000 miles, whichever

occurs first for non-commercial purchasers.

136. By as early as 2008 but no later than 2010, Defendants knew that Class Vehicles

were experiencing premature Timing Chain System failures. Despite this knowledge,

Defendants continued to sell Class Vehicles with a defective Timing Chain System. This

knowledge is imputed to all Defendants because VW America was monitoring warranty claims

and Class Vehicle performance in the United States, and reporting back to its affiliated and

parent companies located in Germany and the United States.

137. Certain Plaintiffs were informed by representatives of VW America that it would

not provide assistance in repairing Timing Chain Systems or engines because the Timing Chain

System failure occurred outside of the express warranty period.

10 Audi vehicles were covered by a general vehicle warranty of “4 years or 50,000 miles, whichever occurs first.”

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138. Defendants refused to fully reimburse or compensate certain Plaintiffs for vehicle repair expenses or provide a suitable substitute or replacement vehicles.

139. Although their vehicles’ Timing Chain System failure occurred outside the unilateral express warranty period (which was neither seen nor bargained for prior to purchase), certain Plaintiffs’ Class Vehicles exhibited unmistakable symptoms (known only by Defendants) of degradation and impending premature failure within the express warranty period.

140. Despite actual and constructive knowledge of Class Vehicle defects as described in this complaint, Defendants failed to cure Class Vehicle defects within the express warranty period and thereby breached the terms of the express warranty.

141. Through no fault of their own, Plaintiffs and members of the Classes did not possess sufficient technical expertise to recognize symptoms of impending Timing Chain System failure. This information, however, was well known to Defendants, but not revealed.

142. Plaintiffs and members of the Classes relied upon material misrepresentations, fraudulent statements and/or material omissions of employees and agents of Defendants at the time of purchase or lease, including but not limited to the useful and expected life of Class

Vehicles and the recommended Class Vehicle maintenance program.

143. Defendants’ misrepresentations and fraudulent statements were received by

Plaintiffs and members of the Classes prior to and at the point of their Class Vehicle purchase or lease, including misrepresentations and omissions in the owner’s manual and the USA Warranty and Maintenance pamphlets. The representations created a reasonable belief that the useful life expectancy of Class Vehicles without a major engine failure was in excess of 120,000 miles.

These representations specifically related that the Timing Chain System was a non-maintenance engine component.

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144. Defendants actively concealed the true reasonably expected duration of Class

Vehicle components, including but not limited to the Timing Chain System, from the Plaintiffs and all Class Vehicle purchasers and lessees. Defendants intentionally failed to inform Class

Vehicle purchasers and lessees that Class Vehicles incorporated a defective and/or improperly tested Timing Chain System that would prematurely fail within the reasonably expected useful life of the vehicle.

145. Defendants intentionally failed to inform Class Vehicle purchasers and lessees that the Timing Chain System incorporated in Class Vehicles results in higher operational costs than alternative conventional timing chain systems or other competitive technology because the

Timing Chain System prematurely fails within the reasonably expected useful life of the vehicle.

146. Defendants actively and fraudulently concealed the existence of Class Vehicle design and manufacture defects (including defects covered under Class Vehicle warranties concerning materials and workmanship) and that the owner’s manual accompanying Class

Vehicles incorporated improper maintenance recommendations and maintenance intervals.

147. Plaintiffs and members of the Classes did not learn that their respective Class

Vehicle was defectively designed and manufactured until after their Timing Chain System failed.

148. Certain Plaintiffs made calls to customer service telephone representatives employed by Defendants and Defendants had notice of the Timing Chain System defect.

149. Authorized Volkswagen and Audi dealers did not have knowledge of and/or were counseled not to admit that any defects existed in Class Vehicles or that improper maintenance recommendations were incorporated in the owner’s manual. Volkswagen and Audi dealers (who also had a vested financial interest in concealing and suppressing the actual cause of class vehicle failures) improperly blamed Class Vehicle failures on certain conditions for which

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Defendants would not be responsible and/or denied the existence of defects in the Timing Chain

System.

150. Defendants had actual knowledge, constructive knowledge and/or should have known upon proper inquiry and testing that Class Vehicles were defective with respect to their

Timing Chain System, suffered from extensive irreversible premature performance degradation during the warranty period and did not have a normal and/or reasonable useful life before sales of Class Vehicles commenced in the United States. This information was technical in nature, proprietary and not known by the ordinary consumer or the public, including Plaintiffs and members of the Classes. Plaintiffs and members of the Classes were ignorant of this technical information through no fault of their own.

151. Defendants acted to conceal the Timing Chain System defects during the warranty period so that repair costs would be shifted to Plaintiffs and members of the Classes once the warranty expired and the Timing Chain System failed.

152. Although Defendants knew defects in Class Vehicles caused premature failure of the Timing Chain System, Defendants knowingly and actively concealed material information from prospective and actual purchasers and lessees with the intent to deceive purchasers and lessees and promote Class Vehicle sales.

153. Defendants’ knowledge of Class Vehicle defects was derived from warranty claims, claims supervisors, customer complaints and monitoring of performance of Class

Vehicles by VW America quality assurance employees. Additionally, the number of replacement components and subsequent component revisions would have placed Defendants on notice of Timing Chain System defects in Class Vehicles. Knowledge of Class Vehicle defects is further imputed to Defendants prior to sale or lease of certain model year Class Vehicles

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because predecessor models using identical Timing Chain System components were also prematurely failing within their reasonably expected life. Defendants elected to place into the stream of commerce Class Vehicles that they knew would be adversely affected by the failure to adequately design and manufacture the Timing Chain System.

154. Additional information supporting allegations of fraud and fraudulent conduct is in the control of Defendants. This information includes but is not limited to technical root cause analyses, communications with Class Vehicle owners, remedial measures, warranty claims and internal corporate communications concerning how to deal with consumers who claim their class engines’ timing chain tensioner was defective.

155. Material information fraudulently concealed and/or actively suppressed by

Defendants includes but is not limited to Class Vehicle defects described in the preceding paragraphs.

156. Material information was fraudulently concealed and/or actively suppressed in order to sell Class Vehicles to uninformed consumers (including Plaintiffs and members of the

Classes) premised on affirmations and representations of reliable, high quality, long-life vehicles with low maintenance, inexpensive operating costs, superior performance and durability. Class

Vehicles incorporated a known Timing Chain System defect that would severely affect the useful life of the vehicle.

157. Defendants (and particularly the sales and marketing executives at VW America) advertised and otherwise created the reasonable expectation (including but not limited to scheduled class engine maintenance recommendations) that Class Vehicles would last over

120,000 miles or ten years before experiencing Timing Chain System failure. Material information was fraudulently concealed and/or actively suppressed in order to protect

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Defendants’ (and authorized vehicle dealers’) corporate profits from loss of sales from adverse publicity, to reduce warranty repair costs and to limit VW and Audi’s brand disparagement.

158. Defendants had a duty to disclose to Class Vehicle owners and lessees that there were materials and manufacture defects in Class Vehicles and that the owner’s manuals set forth the wrong maintenance recommendations and maintenance intervals.

159. This duty arose because Defendants knew that there were defects in the Class

Vehicles and inaccuracies in the owner’s manuals that affected vehicle operation and safety while Class Vehicle owners and lessees were not, and could not reasonably be, cognizant of these defects and dangers.

160. Defendants continuously and affirmatively concealed the actual characteristics of

Class Vehicles from Plaintiffs and other purchasers and lessees. Defendants breached their affirmative duty of disclosure to Class Vehicle owners and lessees.11

161. Defendants breached express and implied warranties and actively and

affirmatively misrepresented, fraudulently concealed and suppressed the existence of defects in

Class Vehicles and omissions in accompanying owner’s manual and USA Warranty and

Maintenance pamphlet.

162. The warranties accompanying Class Vehicles were procedurally and substantively

unconscionable under the Uniform Commercial Code § 2-302 and other applicable state

warranty laws because of the disparity in bargaining power of the parties, the purchasers’ lack of

knowledge that Class Vehicles were defective, the inability of Class Vehicle purchasers to

bargain with Defendants to increase durational warranties, their lack of knowledge, their lack of

meaningful alternatives, disparity in sophistication of the parties, unfair terms in the warranty

11 Since unexpected engine failure is a serious safety issue, Defendants had an affirmative duty to disclose the vehicle defects together with associated risks.

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(including but not limited to durational warranties that unfairly favored Defendants particularly where there were Class Vehicle defects known only to Defendants and the warranty unfairly shifted repair costs to consumers when Class Vehicles prematurely fail during their reasonably expected life), absence of effective warranty competition and the fact that Class Vehicles fail with substantially fewer miles of operation than competitive vehicles from other manufacturers or models identical to Class Vehicle except for an engine with a belt driven valve train rather than the 2.0L TSI / TFSI chain driven valve train.

163. Purchasers and lessees of Class Vehicles reasonably expect vehicles to function well in excess of the Class Vehicles’ durational warranties before requiring extensive expensive repairs. This is particularly true where the purchasers and lessees of Class Vehicles were led to believe by Defendants’ representations and typical consumer expectations in a commercial context that the useful expected life of the vehicles was in excess of 120,000 miles and there was no scheduled inspection or maintenance for the timing chain system within this period.

164. Given the conduct of Defendants and the design, manufacture, materials and workmanship defects in Class Vehicles (that Defendants knew were inherently defective prior to the time of sale), the durational limitations of the warranties are oppressive, unreasonable and unconscionable because the warranty disclaimers of the proposed class representative and proposed members of the Classes were neither knowing nor voluntary.

165. The contractual terms were unreasonably favorable to Defendants since

Defendants were fully aware of defects in the Class Vehicles that substantially reduced the expected useful life of the vehicle. Plaintiffs and members of the Classes were unaware of defects in the Class Vehicles at the time of purchase or lease.

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166. The bargaining position of Defendants for the sale of Class Vehicles was grossly disproportionate and vastly superior to that of individual vehicle purchasers and lessees, including Plaintiffs and members of the Classes. This is because Defendants knew there were defects in Class Vehicles affecting the durational operation.

167. Defendants included unfair contractual provisions concerning the length and

coverage of the express warranty when they knew that Class Vehicles were inherently defective

and dangerous and had been inadequately tested.

168. Defendants knew defects in Class Vehicle components would cause certain

expensive repair failures within one-half of the useful expected life of the vehicle. Defendants

artificially limited the duration of the warranty period to avoid performing warranty repairs in

order to maximize profits through the sale of defective vehicles.

169. Defendants unconscionably sold and leased defective Class Vehicles to Plaintiffs

and members of the Classes without informing these purchasers and lessees that the Class

Vehicles were defective. In the alternative, Defendants failed to notify the Plaintiffs and

members of the Classes after the time of sale or lease that the Timing Chain System had been

redesigned and that the system in their respective vehicles should be replaced prior to the

expiration of the warranty.

170. Defendants’ conduct renders the vehicle purchase and/or lease contract so one-

sided as to be unconscionable under the circumstances existing at the formation of the vehicle

purchase contract.

171. The durational limitation of the express warranties accompanying the Class

Vehicles is unreasonable and unconscionable since Defendants actively concealed known vehicle

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defects and issued incorrect maintenance recommendations and maintenance intervals. Plaintiffs and members of the Classes had no notice of or ability to detect the defects.

172. Defendants restricted the limited power train warranty (including the class engine) duration to 5 years or 60,000 miles (whichever occurs first) for Class Vehicles in an effort to avoid the cost of repairs because they were cognizant of Class Vehicle defects that existed at the time of sale.

173. Engines in competitive vehicles manufactured and sold or leased at the time the

Class Vehicles were manufactured and sold or leased ordinarily last longer than warranted by the limited power train warranty accompanying Class Vehicles.

174. Defendants engaged in unconscionable fraudulent commercial practices and attempted to conceal Class Vehicle materials defects, workmanship defects, manufacturing defects, design defects and improperly recommended maintenance.

175. Defendants are engaged in a continuing fraud concerning the true underlying cause of Class Vehicle failures.

176. Defendants failed to adequately test Class Vehicles in appropriate consumer environments prior to marketing, distribution and sale.

177. Defendants’ unconscionable conduct precludes any exclusion of incidental and consequential damages or any other limitation of remedies. Defendants’ upper level management orchestrated this wrongful conduct.

178. Even if Class Vehicles do not fail entirely, Class Vehicle owners have sustained an ascertainable financial loss, including but not limited to increased maintenance costs for

Timing Chain System inspections and/or premature replacement of the Timing Chain System

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and/or substantially reduced engine performance, as well as diminution of the resale value of their Class Vehicles.

179. The proposed class representatives and proposed members of the Classes have not received the benefit of their bargain concerning their respective purchase of Class Vehicles.

180. Defendants are persons within the context of the consumer protection laws of

New Jersey, Arkansas, California, Connecticut, Colorado, Florida, Georgia, Illinois, Indiana,

Kansas, Maryland, Michigan, Minnesota, Nevada, New Hampshire, New York, North Carolina,

Ohio, Pennsylvania, South Carolina, Texas and Washington, respectively, and committed wrongful conduct described in this complaint including conduct that caused ascertainable financial harm and/or economic loss to Plaintiffs and members of the Classes.

181. Defendants created an over-all misleading impression through their failure to disclose material information concerning the fact that Class Vehicles incorporated defective

Timing Chain Systems and were accompanied an owner’s manual and USA Warranty and

Maintenance pamphlet that incorporated incorrect engine service and maintenance recommendations. Plaintiffs and members of the Classes were deceived by Defendants’ conduct as described in this complaint with respect to their purchase or lease of Class Vehicles.

182. Defendants violated the consumer protection laws of New Jersey, Arkansas,

California, Connecticut, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Maryland,

Michigan, Minnesota, Nevada, New Hampshire, New York, North Carolina, Ohio, Pennsylvania,

South Carolina, Texas and Washington with their oppressive and unconscionable conduct described in this complaint including but not limited to their failure to disclose material information that caused ascertainable financial harm to Plaintiffs and members of the Classes.

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183. Defendants were under a duty to disclose defects in Class Vehicles and associated safety risks as described in this complaint but failed to disclose to Plaintiffs and members of the

Classes the characteristics of Class Vehicles with respect to defects in violation of the consumer protection laws of New Jersey, Arkansas, California, Connecticut, Colorado, Florida, Georgia,

Illinois, Indiana, Kansas, Maryland, Michigan, Minnesota, Nevada, New Hampshire, New York,

North Carolina, Ohio, Pennsylvania, South Carolina, Texas and Washington. Defendants’ omissions (that Timing Chain Systems were defective and that this defect constituted a safety risk) deceived purchasers and lessees (including but not limited to Plaintiffs and members of the

Classes). Those disclosure omissions include the fact that Class Vehicle defects had a significant impact on the value, durability and future care of Class Vehicles. This failure to disclose additional information concerning Class Vehicle defects had the capacity to, and in fact did, deceive purchasers and lessees (including Plaintiffs and members of the Classes) in a material respect.

184. If Plaintiffs and members of the Classes had been made aware of the defects in

their respective Class Vehicles and the attendant ramifications of value, durability, maintenance

expenses, safety and care, they would not have purchased or leased the Class Vehicles or would

have paid less for their vehicles since members of the Classes were led to believe that they were

purchasing a vehicle that was free of major defects and were not fully informed of the true

characteristics and attributes of Class Vehicles.

185. Defendants fraudulently, intentionally, negligently and/or recklessly concealed

from Plaintiffs and members of the Classes defects in Class Vehicles even though Defendants

knew or should have known that information concerning these defects was material and central

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to the marketing and sale or lease of Class Vehicles to prospective purchasers and lessees including Plaintiffs and members of the Classes.

186. Defendants violated the consumer protection laws of New Jersey, Arkansas,

California, Connecticut, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Maryland,

Michigan, Minnesota, Nevada, New Hampshire, New York, North Carolina, Ohio, Pennsylvania,

South Carolina, Texas and Washington by failing to inform Class Vehicle owners and lessees at the time of purchase or lease that Class Vehicles had known defects, that the vehicles would prematurely require major engine repairs and/or prematurely fail with resulting catastrophic failure and/or would have a significant effect on the vehicle’s value.

187. As a direct result of these omissions, Plaintiffs and members of the Classes purchased or leased Class Vehicles and sustained economic harm since they purchased vehicles worth considerably less than represented, with an increased cost of vehicle ownership and an increasing risk of injury that was not disclosed to or reasonably anticipated by consumers at the time of purchase or lease.

188. The wrongful conduct of Defendants in violation of the consumer protection laws of New Jersey, Arkansas, California, Connecticut, Colorado, Florida, Georgia, Illinois, Indiana,

Kansas, Maryland, Michigan, Minnesota, Nevada, New Hampshire, New York, North Carolina,

Ohio, Pennsylvania, South Carolina, Texas and Washington occurred within the limitations period set out in the respective statutes and/or the limitations period is tolled by Defendants’ conduct.

What the Omissions Were:

189. Defendants fraudulently omitted to disclose material facts basic to both the

purchase and warranty service concerning Class Vehicles, including information concerning

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Timing Chain System defects, in an effort to deceive purchasers and lessees as described in this complaint. At the time of purchase or lease, Defendants fraudulently omitted to disclose material matter regarding the defects in Class Vehicles, including their impact on future repairs, costs and vehicle reliability. Defendants fraudulently concealed from Plaintiffs and members of the

Classes defects in Class Vehicles even though Defendants knew or should have known that information concerning these defects was material and central to the marketing, sale and lease of

Class Vehicles to prospective purchasers and lessees, including Plaintiffs and members of the

Classes. Defendants concealed from Plaintiffs and members of the Classes during their warranty periods that a defect existed with the Timing Chain System which could have and should have been fixed during the warranty period, particularly as it was a safety issue, and Defendants’ withholding of this material information deprived Plaintiffs and members of the Classes of the right to have such defective part replaced for free under the warranty.

The Person(s) Responsible for the Failure to Disclose:

190. Plaintiffs and members of the Classes are entitled to the reasonable inference that

Defendants’ sales, marketing, engineering and warranty departments and their executives were

involved in the omissions. This is particularly true given Defendants’ recent conduct involving

compliance certification and pollution control defeat devices involved in the sale of diesel

powered passenger vehicles around the world and particularly in the United States.

The Context of the Omissions and the Manner in which they Misled:

191. Material information was fraudulently concealed and/or actively suppressed in order to sell or lease Class Vehicles to uninformed consumers (including Plaintiffs and members of the Classes) premised on affirmations and representations as described in this complaint.

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192. If Plaintiffs and members of the Classes had been informed of defects in their

Class Vehicles, they would not have purchased or leased their respective Class Vehicles or would have paid substantially less. If Plaintiffs and members of the Classes had been made aware of the defects in their respective Class Vehicles and the attendant ramifications of their respective vehicle’s diminution in value, future cost of repairs, durability and care, they would not have purchased or leased the Class Vehicles since each class member believed they were purchasing or leasing vehicles without major defects and were not fully informed of true characteristics and attributes of Class Vehicles. If Plaintiffs and members of the Classes had been informed of the Timing Chain System defect during the warranty period, they would have had the defective part replaced under warranty. Defendants’ conduct that violated the consumer fraud statutes alleged herein deprived Plaintiffs and members of the Classes of that remedy.

What Defendants Obtained through the Fraud:

193. Material information concerning Class Vehicles was concealed and/or actively suppressed in order to protect Defendants’ corporate profits from loss of sales, purchase refunds, warranty repairs, adverse publicity and limit brand disparagement. Purchasers believed they were obtaining vehicles as having different attributes than described and purchased or leased and were accordingly deprived of economic value and paid a price premium for their Class

Vehicles. Defendants had a uniform policy of not properly disclosing Class Vehicle defects in order to promote sales and increase profits as described in this complaint.

194. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiffs and members of the Classes purchased or leased Class Vehicles and

sustained an ascertainable loss, including but not limited to financial harm as described in this

complaint.

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VI. TOLLING OF THE STATUTE OF LIMITATIONS

195. Any applicable statute of limitations has been tolled by Defendants’ knowing and

active concealment of the Timing Chain System defect and the misrepresentations and omissions

alleged herein. Through no fault or lack of diligence, Plaintiffs and members of the Classes were

deceived regarding the Timing Chain System defect and could not reasonably discover the latent

nature of the defect.

196. Plaintiffs and members of the Classes could not reasonably discover Defendants’

deception with respect to the Timing Chain System defect in the Class Vehicles prior to

experiencing a failure and being informed of the reason for the failure. Within the time period of

any applicable statutes of limitations, Plaintiffs and members of the Classes could not have

discovered through the exercise of reasonable diligence that Defendants were concealing the

Timing Chain System defect.

197. Class Vehicle owners do not possess the requisite technical skills in automotive

engineering to discern the design, manufacture, materials and workmanship defects in their

vehicles or the requisite technical skills to surmise the proper vehicle maintenance and

maintenance intervals for Class Vehicles.

198. Plaintiffs and members of the Classes did not discover and did not know of any

facts that would have caused a reasonable person to suspect that Defendants were concealing a

latent defect and/or that the Class Vehicles contained a Timing Chain System prone to premature

failure or safety risk. As alleged herein, the existence of the Timing Chain System defect and

safety risk were material to Plaintiffs and members of the Classes at all relevant times.

199. At all times, Defendants are and were under a continuous duty to disclose to

Plaintiffs and members of the Classes the true standard, quality and grade of the Class Vehicles

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and to disclose the Timing Chain System defect and potential safety risk associated with the premature failure of the system.

200. Defendants knowingly, actively and affirmatively concealed the facts alleged

herein including the Timing Chain System defect. Plaintiffs and members of the Classes

reasonably relied on Defendants’ knowing, active and affirmative concealment.

201. Defendants fraudulently attributed the Timing Chain System failures to other

factors and/or exculpating conditions for which Defendants had no responsibility when, in

reality, Timing Chain Systems were failing due to design, manufacture, materials and/or

workmanship defects.

202. For these reasons, all applicable statutes of limitation have been tolled based on

the discovery rule and Defendants’ fraudulent concealment and Defendants are estopped from

relying on any statutes of limitations in defense of this action.

VII. CLASS ACTION ALLEGATIONS

203. Plaintiffs bring this proposed action pursuant to Fed. R. Civ. P. 23(b)(1), 23(b)(2)

and 23(b)(3) on behalf of themselves and all members of the proposed Class and Sub-Classes (or

any other class authorized by the court) defined as follows:

Nationwide Class : All persons or entities in the United States that purchased, leased or own a Class Vehicle (the “Nationwide Class” or “Class”).

New Jersey Class: All persons or entities that purchased or leased a Class Vehicle in the State of New Jersey and all persons or entities in the State of New Jersey that purchased, leased or own a Class Vehicle (the “New Jersey Sub-Class”).

Arkansas Class: All persons or entities that purchased or leased a Class Vehicle in the State of Arkansas and all persons or entities in the State of Arkansas that purchased, leased or own a Class Vehicle (the “Arkansas Sub-Class”).

California Class: All persons or entities that purchased or leased a Class Vehicle in the State of California and all persons or entities in the State of California that purchased, leased or own a Class Vehicle (the “California Sub-Class”).

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Colorado Class: All persons or entities that purchased or leased a Class Vehicle in the State of Colorado and all persons or entities in the State of Colorado that purchased, leased or own a Class Vehicle (the “Colorado Sub-Class”).

Connecticut Class: All persons or entities that purchased or leased a Class Vehicle in the State of Connecticut and all persons or entities in the State of Connecticut that purchased, leased or own a Class Vehicle (the “Connecticut Sub- Class”).

Florida Class: All persons or entities that purchased or leased a Class Vehicle in the State of Florida and all persons or entities in the State of Florida that purchased, leased or own a Class Vehicle (the “Florida Sub-Class”).

Georgia Class: All persons or entities that purchased or leased a Class Vehicle in the State of Georgia and all persons or entities in the State of Georgia that purchased, leased or own a Class Vehicle (the “Georgia Sub-Class”).

Illinois Class: All persons or entities that purchased or leased a Class Vehicle in the State of Illinois and all persons or entities in the State of Illinois that purchased, leased or own a Class Vehicle (the “Illinois Sub-Class”).

Indiana Class: All persons or entities that purchased or leased a Class Vehicle in the State of Indiana and all persons or entities in the State of Indiana that purchased, leased or own a Class Vehicle (the “Indiana Sub-Class”).

Kansas Class: All persons or entities that purchased or leased a Class Vehicle in the State of Kansas and all persons or entities in the State of Kansas that purchased, leased or own a Class Vehicle (the “Kansas Sub-Class”).

Maryland Class: All persons or entities that purchased or leased a Class Vehicle in the State of Maryland and all persons or entities in the State of Maryland that purchased, leased or own a Class Vehicle (the “Maryland Sub-Class”).

Michigan Class: All persons or entities that purchased or leased a Class Vehicle in the State of Michigan and all persons or entities in the State of Michigan that purchased, leased or own a Class Vehicle (the “Michigan Sub-Class”).

Minnesota Class: All persons or entities that purchased or leased a Class Vehicle in the State of Minnesota and all persons or entities in the State of Minnesota that purchased, leased or own a Class Vehicle (the “Minnesota Sub-Class”).

Nevada Class: All persons or entities that purchased or leased a Class Vehicle in the State of Nevada and all persons or entities in the State of Nevada that purchased, leased or own a Class Vehicle (the “Nevada Sub-Class”).

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New Hampshire Class: All persons or entities that purchased or leased a Class Vehicle in the State of New Hampshire and all persons or entities in the State of New Hampshire that purchased, leased or own a Class Vehicle (the “New Hampshire Sub-Class”).

New York Class: All persons or entities that purchased or leased a Class Vehicle in the State of New York and all persons or entities in the State of New York that purchased, leased or own a Class Vehicle (the “New York Sub-Class”).

North Carolina Class: All persons or entities that purchased or leased a Class Vehicle in the State of North Carolina and all persons or entities in the State of North Carolina that purchased, leased or own a Class Vehicle (the “North Carolina Sub-Class”).

Ohio Class: All persons or entities that purchased or leased a Class Vehicle in the State of Ohio and all persons or entities in the State of Ohio that purchased, leased or own a Class Vehicle (the “Ohio Sub-Class”).

Pennsylvania Class: All persons or entities that purchased or leased a Class Vehicle in the State of Pennsylvania and all persons or entities in the State of Pennsylvania that purchased, leased or own a Class Vehicle (the “Pennsylvania Sub-Class”).

South Carolina: All persons or entities that purchased or leased a Class Vehicle in the State of South Carolina and all persons or entities in the State of South Carolina that purchased, leased or own a Class Vehicle (the “South Carolina Sub- Class”).

Texas Class : All persons or entities that purchased or leased a Class Vehicle in the State of Texas and all persons or entities in the State of Texas that purchased, leased or own a Class Vehicle (the “Texas Sub-Class”).

Washington Class : All persons or entities that purchased or leased a Class Vehicle in the State of Washington and all persons or entities in the State of Washington that purchased, leased or own a Class Vehicle (the “Washington Sub- Class”) (together with the New Jersey Sub-Class, Arkansas Sub-Class, California Sub-Class, Colorado Sub-Class, Connecticut Sub-Class, Florida Sub-Class, Georgia Sub-Class; Illinois Sub-Class, Indiana Sub-Class; Kansas Sub-Class; Maryland Sub-Class, Michigan Sub-Class, Minnesota Sub-Class, Nevada Sub- Class; New Hampshire Sub-Class, New York Sub-Class; North Carolina Sub- Class, Ohio Sub-Class, Pennsylvania Sub-Class, South Carolina Sub-Class; and the Texas Sub-Class (the “Sub-Classes”).

204. Excluded from the Class and Sub-Classes are Defendants and their parents, subsidiaries and corporate affiliates, officers, directors, employees, assigns, and successors, the

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court, court staff, Defendants’ counsel and all respective immediate family members of the excluded entities described above. Also excluded from the Class and Sub-Classes are any and all claims involving personal injury. Plaintiffs reserve the right to revise the definition of the Class and Sub-Classes based upon subsequently discovered information and reserve the right to establish additional sub-classes where appropriate. The Class and Sub-Classes are collectively referred to herein as the “Classes.”

Numerosity of the Class: Fed. R. Civ. P 23(a)(1).

205. The proposed class is so numerous that individual joinder of all potential members is impracticable under Fed. R. Civ. P. 19 or 20. It is estimated there are in excess of approximately 250,000 class vehicles imported into and/or manufactured in the United States.

Although the number, location and identity of all proposed members of the Classes cannot be presently ascertained, this information is obtainable through discovery from the Defendants.

Existence of Common Questions of Law and Fact: Fed. R. Civ. P. 23(a)(2) and 23(b)(3).

206. Common questions of law and fact exist as to all members of the Classes and predominate over any issues solely affecting individual members of the Classes. The common and predominating questions of law and fact include, but are not limited to:

(a) Whether the Timing Chain System installed in the Class Vehicles is prone to

premature failure;

(b) Whether the Timing Chain System installed in the Class Vehicles contains a design

defect and/or a defect in material, manufacturing and/or workmanship;

(c) Whether the Timing Chain System installed in the Class Vehicles presents a safety

risk;

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(d) Whether Defendants knew or should have known that the Timing Chain System

installed in the Class Vehicles is defective and/or prone to premature failure and presents

a safety risk;

(e) Whether Defendants had a duty to disclose that the Timing Chain System installed in

the Class Vehicles is defective and/or prone to premature failure and presents a safety

risk;

(f) Whether Defendants breached their duty to disclose that the Timing Chain System

installed in the Class Vehicles is defective and/or prone to premature failure and presents

a safety risk;

(g) Whether Defendants intentionally and knowingly falsely misrepresented, concealed,

suppressed and/or omitted material facts including the fact that the Timing Chain System

installed in the Class Vehicles is defective and/or prone to premature failure and presents

a safety risk;

(h) Whether Defendants negligently or falsely misrepresented or omitted material facts

including the fact that the Timing Chain System installed in the Class Vehicles is

defective and/or prone to premature failure and presents a safety risk;

(i) Whether Defendants made material misrepresentations and/or omissions concerning

the standard, quality or grade of the Class Vehicles and the Timing Chain System defect;

(j) Whether Class Vehicles were sold with an owner’s manual and/or USA Warranty and

Maintenance manual that incorporated incorrect inspection and service intervals for the

Timing Chain System;

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(k) Whether Defendants breached their express warranties (including but not limited to

the powertrain limited warranty) in that Class Vehicles were defective with respect to

engine design and manufacture, including workmanship and materials;

(l) Whether Defendants breached their implied warranties in that Class Vehicles were

defective with respect to engine design and manufacture, including workmanship and

materials;

(m) Whether Defendants violated The Magnuson-Moss Warranty Act, 15 U.S.C. § 2301

et seq. and/or any other statutory duties under state laws;

(n) Whether one or more Defendants breached their express and/or implied contractual

duties to Plaintiffs and members of the Classes;

(o) Whether Defendants were unjustly enriched by the conduct alleged herein;

(p) Whether members of the Classes would pay less for a Class Vehicle if Defendants, at

the time of purchase or lease, disclosed that the Timing Chain System was defective

and/or prone to premature failure during the useful life of the engine;

(q) Whether members of the Classes would have purchased a Class Vehicle if

Defendants, at the time of purchase or lease, disclosed that the Timing Chain System was

defective and/or prone to premature failure during the useful life of the engine;

(r) Whether members of the Classes would have had the Timing Chain System repaired

or replaced if Defendants had disclosed, prior to the expiration of the warranty periods,

that the Timing Chain System was defective and/or prone to premature failure during the

useful life of the engine;

(s) Whether Defendants actively concealed or omitted material facts from Plaintiffs and

members of the Classes in order to, inter alia, sell more Class Vehicles and/or transfer

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the costs associated with repair or replacement of the Timing Chain System to Plaintiffs

and the Classes;

(t) Whether Defendants committed unfair and deceptive business act practices by failing

to inform owners and lessees of Class Vehicles prior to purchase and/or lease and/or

during the post-sale express warranty period that the Timing Chain System was defective

and would fail shortly after the warranty period expired and cause damage to the engine,

and that this defect posed a significant safety risk;

(u) Whether damages, restitution, equitable, injunctive, compulsory, or other relief is

warranted; and

(v) Whether the court should establish a constructive trust funded by the benefits

conferred upon the Defendants by their wrongful and unlawful conduct.

Typicality of Claims or Defenses of a Definable Class: Fed. R. Civ. P. 23(a)(3).

207. Plaintiffs’ claims and defenses are typical of the claims and defenses of proposed

Members of the Classes. Class claims arise out of ownership or lease of Class Vehicles as defined in ¶ 1. As alleged herein, Plaintiffs and the Classes sustained damages arising out of the same illegal actions and conduct by Defendants. Defendants have no claims or defenses unique to Plaintiffs or different from the proposed Members of the Classes.

Adequate Representation: Fed. R. Civ. P. 23(a)(4).

208. Plaintiffs currently own their respective class vehicles and have no conflicting

interests with any other proposed Class member. Plaintiffs will fairly and adequately protect the

interests of members of the Classes. The claims of Plaintiffs and members of the Classes are so

interrelated that the interests of members of the Classes will be fairly and adequately protected in

their absence.

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209. Plaintiffs have engaged the services of the undersigned counsel. Counsel is experienced in complex litigation, will adequately prosecute this action, and will assert and protect the rights of, and otherwise represent, Plaintiffs and absent members of the Classes.

Superiority of a Class Action and Predominance of Common Questions: Fed. R. Civ. P.

23(b)(3).

210. Class action status is warranted under Rule 23(b)(3) because questions of law or fact common to the members of the Classes predominate over any questions affecting only individual members, and a class action is superior to other available methods for the fair and efficient adjudication of this controversy.

211. Maintenance of a class action in one court is the most economical procedural device to litigate the Class Vehicle and class engine claims for Class Vehicle owners and the

Defendants. Prosecution of separate actions by individual members of the Classes could create risk of inconsistent or varying adjudications with respect to individual members of the Classes which would establish incompatible standards of conduct for the party opposing the Classes as recognized by Fed. R. Civ. P. 23(b)(1)(A).

212. Prosecution of separate actions by individual members of the Classes could create risk of adjudications with respect to individual members of the Classes which would, as a practical matter, be dispositive of the interests of the other members of the Classes who are not parties to the adjudications or substantially impair or impede their ability to protect their interests as recognized by Fed. R. Civ. P. 23(b)(1)(B).

213. There is a substantial likelihood that the Defendants will oppose this class action and will further act or refuse to act on grounds generally applicable to the Classes, thereby

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making appropriate final injunctive relief or corresponding declaratory relief with respect to the

Classes as a whole impractical as recognized by Fed. R. Civ. P. 23(b)(2).

214. Questions of law and fact common to members of the Classes predominate over

any questions affecting any individual members and a class action is superior to other available

methods for the fair and efficient adjudication of the controversy as recognized by Fed. R. Civ.

P. 23(b)(3).

215. The Classes may also be certified under Rule 23(b)(1)(A) and (B) because the

prosecution of separate actions by individual members of the Classes would create a risk of

inconsistent or varying adjudications with respect to individual members of the Classes, which

would establish incompatible standards of conduct for Defendants, would be dispositive of the

interests of nonparties to the individual adjudications, and would substantially impair the ability

of such nonparties to protect their interests.

216. The Classes may also be certified under Rule 23(b)(2) because Defendants have

acted on grounds generally applicable to the Classes, thereby making it appropriate to award

final injunctive relief or corresponding declaratory relief with respect to the Classes.

217. The interest of members within the Classes in individually controlling the

prosecution of separate actions is theoretical and not practical. The Classes have a high degree

of similarity and are cohesive, and Plaintiffs anticipate no difficulty in the management of this

matter as a class action.

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VIII. CLAIMS FOR RELIEF

COUNT I

FRAUD (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

218. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

219. Plaintiffs bring this count on behalf of themselves and the members of the

Nationwide Class or, alternatively, on behalf of the Sub-Classes.

220. Defendants intentionally and knowingly falsely misrepresented, concealed, suppressed and/or omitted material facts including the standard, quality or grade of the Class

Vehicles and the fact that the Timing Chain System installed in Class Vehicles is defective and prone to premature failure, exposing drivers, occupants and members of the public to safety risks with the intent that Plaintiffs and members of the Classes rely on Defendants’ misrepresentations and omissions. As a direct result of Defendants’ fraudulent conduct, members of the Classes have suffered actual damages.

221. As a result of Defendants’ failure to disclose to members of the Classes the material fact that the Timing Chain System installed in Class Vehicles is defective and prone to premature failure, owners and lessees of Class Vehicles are required to spend thousands of dollars to repair or replace the Timing Chain System, other engine parts and/or the entire engine, or sell their vehicles at a substantial loss. The fact that the Timing Chain System installed in the

Class Vehicles is defective and prone to premature failure is material because no reasonable consumer expects that he or she will have to spend thousands of dollars for diagnosis, repair or replacement of the Timing Chain System before the end of the useful life of the engine, and

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because Plaintiffs and members of the Classes had a reasonable expectation that the vehicles would not suffer from a premature failure of the Timing Chain System that would present a safety risk.

222. The fact that the Timing Chain System installed in the Class Vehicles is defective and prone to premature failure is also material because it presents a safety risk and places the driver and occupants at risk of serious injury or death. When the Timing Chain

System fails, drivers may be unable to accelerate or maintain speed or may experience catastrophic engine failure. Drivers and occupants of the Class Vehicles are at risk for rear-end collisions or other accidents caused by the inability to maintain an appropriate speed, and the general public is also at risk for being involved in an accident with a Class Vehicle that suddenly stops or is unable to maintain an appropriate speed. Plaintiffs and members of the Classes would not have purchased the Class Vehicles but for Defendants’ omissions and concealment of material facts regarding the nature and quality of the Class Vehicles and existence of the Timing

Chain System defect, or would have paid less for the Class Vehicles.

223. Defendants knew their false misrepresentation, concealment and suppression of material facts was false and misleading and knew the effect of concealing those material facts.

Defendants knew their concealment and suppression of the Timing Chain System defect would sell more Class Vehicles and would discourage Plaintiffs and members of the Classes from seeking replacement or repair of the Timing Chain System within the warranty periods. Further,

Defendants intended to induce Plaintiffs and members of the Classes into purchasing or leasing the Class Vehicles and discourage them from seeking replacement or repair of the Timing Chain

System within the warranty periods, thereby unlawfully transferring the cost of repair or

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replacement from Defendants to Plaintiffs and members of the Classes, in order to decrease costs and increase profits.

224. Defendants acted with malice, oppression and fraud.

225. Plaintiffs and members of the Classes reasonably relied upon Defendants’ knowing, affirmative and active false representations, concealment and omissions. As a direct and proximate result of Defendants’ false representations, omissions and active concealment of material facts regarding the Timing Chain System defect, Plaintiffs and members of the Classes have suffered actual damages in an amount to be determined at trial.

COUNT II

BREACH OF CONTRACT (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

226. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

227. This count is brought on behalf of Plaintiffs and members of the Classes who have established sufficient direct dealings, including but not limited to Class Vehicle purchase or lease, with Defendants or their agents, including authorized dealerships, to establish privity of contract with Defendants.

228. Every purchase or lease of a Class Vehicle from an authorized dealer of the Class

Vehicles constitutes a contract between Defendants and the purchaser or lessee. Defendants materially breached these contracts by selling or leasing defective Class Vehicles to Plaintiffs and members of the Classes and by misrepresenting the standard, quality or grade of the Class

Vehicles and/or failing to disclose the existence of the Timing Chain System defect. The existence of the Timing Chain System defect at the time of lease or sale rendered the Class

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Vehicles substantially less valuable than the vehicles Defendants advertised and promised to deliver to Plaintiffs and members of the Classes.

229. Defendants’ misrepresentations and omissions and failure to disclose the existence of the Timing Chain System defect ( see supra , ¶8 & n.3) caused Plaintiffs and members of the Classes to enter into agreements to purchase or lease their Class Vehicles.

Plaintiffs and members of the Classes would not have purchased or leased their Class Vehicles, or would have paid less for their Class Vehicles, but for Defendants’ misrepresentations and omissions. Plaintiffs and members of the Classes overpaid for their Class Vehicles and did not receive the benefit of their bargain.

230. Defendants also breached the implied covenant of good faith and fair dealing implied in their contracts with Plaintiffs and members of the Classes by providing Class Vehicles that contain an undisclosed Timing Chain System defect that is prone to premature failure and presents a safety risk to drivers and occupants of the Class Vehicles. Defendants further breached the implied covenant of good faith and fair dealing by providing limited warranties on Class

Vehicles that contain a known latent defect in the Timing Chain System that Defendants knew or should have known would fail beyond the warranty periods. Defendants acted in bad faith in order to sell additional Class Vehicles and/or transfer the cost of repair or replacement of the defective Timing Chain System to Plaintiffs and members of the Classes.

231. As a direct and proximate result of Defendants’ breach of their express and implied duties, Plaintiffs and members of the Classes have been damaged in an amount to be proven at trial, including, but not limited to, compensatory damages, incidental and consequential damages, and other damages allowed by law.

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COUNT III

NEGLIGENT MISREPRESENTATION (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

232. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

233. Plaintiffs bring this count on behalf of themselves and the members of the

Nationwide Class or, alternatively, on behalf of the Sub-Classes.

234. Defendants owed a duty to disclose the Timing Chain System defect and its corresponding safety risk to Plaintiffs and members of the Classes because Defendants possessed superior and exclusive knowledge regarding the defect and the risks associated with the Timing

Chain System’s failure.

235. Defendants negligently misrepresented and omitted material facts including the standard, quality or grade of the Class Vehicles and the fact that the Timing Chain System installed in the Class Vehicles is defective and prone to premature failure, exposing drivers, occupants and members of the public to safety risks. As a direct result of Defendants’ negligent conduct, Plaintiffs and members of the Classes have suffered actual damages.

236. As a result of Defendants’ failure to disclose, in owners’ manuals, maintenance schedules or elsewhere, to Plaintiffs and members of the Classes the material fact that the

Timing Chain System installed in the Class Vehicles is defective and prone to premature failure, owners and lessees of the Class Vehicles are required to spend thousands of dollars to repair or replace the Timing Chain System, other engine parts and/or the entire engine, or sell their vehicles at a substantial loss. The fact that the Timing Chain System installed in the Class

Vehicles is prone to premature failure is material because no reasonable consumer expects that

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he or she will have to spend thousands of dollars for diagnosis, repair or replacement of the

Timing Chain System before the end of the useful life of the engine, and because Plaintiffs and members of the Classes had a reasonable expectation that the vehicles would not suffer from a premature failure of the Timing Chain System that would present a safety risk.

237. The fact that the Timing Chain System installed in the Class Vehicles is prone to premature failure is also material because it presents a safety risk and places the driver and occupants at risk of serious injury or death. When the Timing Chain System fails, drivers may be unable to accelerate or maintain speed or may experience catastrophic engine failure. Drivers and occupants of the Class Vehicles are at risk for rear-end collisions or other accidents caused by the inability to maintain an appropriate speed, and the general public is also at risk for being involved in an accident with a Class Vehicle that suddenly stops or is unable to maintain an appropriate speed. Plaintiffs and members of the Classes would not have purchased the Class

Vehicles but for Defendants’ negligent false representations and omissions of material facts regarding the nature and quality of the Class Vehicles and existence of the Timing Chain System defect, or would have paid less for the Class Vehicles.

238. Plaintiffs and members of the Classes justifiably relied upon Defendants’ negligent false representations and omissions of material facts. As a direct and proximate result of Defendants’ negligent false representations and omissions of material facts regarding the standard, quality or grade of the Class Vehicles and/or the Timing Chain System defect,

Plaintiffs and members of the Classes have suffered an ascertainable loss and actual damages in an amount to be determined at trial.

239. As a direct and proximate result of Defendants’ breach of their express and implied duties, Plaintiffs and members of the Classes have been damaged in an amount to be

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proven at trial, including, but not limited to, compensatory damages, incidental and consequential damages, and other damages allowed by law.

COUNT IV

BREACH OF EXPRESS WARRANTY (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

240. Plaintiffs incorporate and reallege each preceding paragraph as though fully set

forth herein.

241. Plaintiffs bring this count on behalf of themselves and the members of the

Nationwide Class or, alternatively, on behalf of the Sub-Classes.

242. Defendants marketed the Class Vehicles as safe, built to last, and reliable

vehicles. Such representations formed the basis of the bargain in Plaintiffs’ and members of the

Classes’ decisions to purchase or lease the Class Vehicles.

243. Defendants are and were at all relevant times merchants and sellers of goods (i.e.,

Class Vehicles) as defined under the Uniform Commercial Code.

244. With respect to leases, Defendants are and were at all relevant times lessors of

goods (i.e., Class Vehicles) as defined under the Uniform Commercial Code.

245. The Class Vehicles are and were at all relevant times goods within the meaning of

the Uniform Commercial Code.

246. In connection with the purchase or lease of each of the Class Vehicles,

Defendants provide warranty coverage for the Class Vehicles under one or more manufacturer’s

warranties. For illustrative purposes, Defendants currently provide: (1) a New Vehicle Limited

Warranty which includes “virtually bumper to bumper coverage for 3 years or 36,000 miles,

whichever occurs first” or 4 years or 50,000 miles, whichever occurs first; and/or (2) a

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Powertrain Limited Warranty for “5 years or 60,000 miles whichever occurs first, from the date the vehicle was first placed in service,” which covers “all internal [engine] parts” including the

Timing Chain System. Under warranties provided to members of the Classes, Defendants promised to repair or replace covered defective engine components arising out of defects in materials and/or workmanship, including the Timing Chain System, at no cost to owners and lessees of the Class Vehicles. However, given the latent nature of the defective Timing Chain

System, Defendants knew or should have known that the majority of Timing Chain System failures occur outside of the warranty periods.

247. Defendants’ warranties formed a basis of the bargain that was reached when

Plaintiffs and members of the Classes purchased or leased their Class Vehicles.

248. Plaintiffs and the members of the Classes experienced the existence of the Timing

Chain System defect within the warranty periods but had no knowledge of the existence of the defect, which was known and concealed by Defendants. Despite the existence of the warranties,

Defendants failed to inform Plaintiffs and members of the Classes that the Class Vehicles contained the Timing Chain System defect during the warranty periods, and, thus, wrongfully transferred the costs of repair or replacement of the Timing Chain System to Plaintiffs and members of the Classes.

249. Because of the Timing Chain System defect, Class Vehicles are not reliable and owners of these vehicles have lost confidence in the ability of Class Vehicles to perform the function of safe reliable transportation.

250. Plaintiffs and members of the Classes could not have reasonably discovered the

Timing Chain System defect prior to failure.

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251. Defendants breached the express warranty promising to repair and correct a manufacturing defect or defects in materials or workmanship of any parts they supplied.

252. On information and belief, Defendants have not repaired or replaced the Timing

Chain System free of charge for Plaintiffs and members of the Classes despite the Timing Chain

System defect in the Class Vehicles at the time of sale or lease.

253. Defendants further breached their express warranties by selling Class Vehicles that were defective with respect to engine materials, workmanship, design and manufacture, and were accompanied by an owner’s manual and/or USA Warranty and Maintenance pamphlet that incorporated no inspection and service intervals for the Timing Chain System although

Defendants knew these components were defective and required periodic inspection and service.

254. Class Vehicles were not of merchantable quality and were unfit for the ordinary purposes for which passenger vehicles are used because of engine materials, workmanship, design and manufacture defects which cause engine failure and/or failure to perform as warranted.

255. Defendants were provided notice of the Timing Chain System defect by numerous consumer complaints made to their authorized dealers nationwide, complaints to NHTSA, and through their own testing. Affording Defendants a reasonable opportunity to cure their breach of written warranties would be unnecessary and futile here because Defendants have known of and concealed the Timing Chain System defect and, on information and belief, have refused to repair or replace the Timing Chain System free of charge outside of the warranty periods despite the defect’s existence at the time of sale or lease of the Class Vehicles.

256. Defendants’ attempt to disclaim or limit recovery to the terms of the express warranties is unconscionable and unenforceable here. Specifically, Defendants’ warranty

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limitation is unenforceable because they knowingly sold or leased a defective product without informing consumers about the defect. The time limits contained in Defendants’ warranty periods were also unconscionable and inadequate to protect Plaintiffs and members of the

Classes. Among other things, Plaintiffs and the members of the Classes did not determine these time limitations, the terms of which unreasonably favored Defendants. A gross disparity in bargaining power existed between Defendants and members of the Classes, and Defendants knew or should have known that the Class Vehicles were defective at the time of sale or lease and that the Timing Chain Systems would fail well before their useful lives.

257. Further, the limited warranty promising to repair and/or correct a manufacturing defect fails in its essential purpose because the contractual remedy is insufficient to make

Plaintiffs and the other members of the Classes whole because, on information and belief,

Defendants have failed and/or have refused to adequately provide the promised remedies within a reasonable time.

258. Defendants knew that the Class Vehicles were inherently defective and did not conform to their warranties and Plaintiffs and members of the Classes were induced to purchase or lease the Class Vehicles under false and/or fraudulent pretenses.

259. As a direct and proximate result of Defendants’ breach of express warranties,

Plaintiffs and members of the Classes have been damaged in an amount to be determined at trial.

260. Finally, because of Defendants’ breach of express warranty as set forth herein,

Plaintiffs and members of the Classes assert, as additional and/or alternative remedies, the revocation of acceptance of the goods and the return to Plaintiffs and members of the Classes of the purchase or lease price of all Class Vehicles currently owned or leased, and for such other incidental and consequential damages as allowed.

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COUNT V

BREACH OF IMPLIED WARRANTY (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

261. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

262. Plaintiffs bring this count on behalf of themselves and the Nationwide Class or,

alternatively, on behalf of the Sub-Classes.

263. Plaintiffs and members of the Classes purchased or leased the Class Vehicles

from Defendants by and through Defendants’ authorized agents for retail sales, or were

otherwise expected to be the eventual purchasers of the Class Vehicles when bought from a third

party. At all relevant times, Defendants were the manufacturers, distributors, warrantors, and/or

sellers of Class Vehicles. Defendants knew or had reason to know of the specific use for which

the Class Vehicles were purchased or leased.

264. Defendants are and were at all relevant times merchants and sellers of goods (i.e.,

Class Vehicles) as defined under the Uniform Commercial Code.

265. With respect to leases, Defendants are and were at all relevant times lessors of

goods (i.e., Class Vehicles) as defined under the Uniform Commercial Code.

266. The Class Vehicles are and were at all relevant times goods within the meaning of

the Uniform Commercial Code.

267. Defendants impliedly warranted that the Class Vehicles were in merchantable

condition and fit for the ordinary purpose for which vehicles are used.

268. Defendants failed to provide legally binding written notice to proposed class

representatives and other Class Vehicle purchasers of implied warranty exclusions at time of

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purchase because the warranty exclusion failed to mention merchantability and was not conspicuous within the meaning of Uniform Commercial Code § 2-316 and therefore ineffective by law.

269. The Class Vehicles, when sold or leased and at all times thereafter, were not in merchantable condition and are not fit for the ordinary purpose of providing safe and reliable transportation. The Class Vehicles contain an inherently defective Timing Chain System (at the time of sale or lease and thereafter) and present an undisclosed safety risk to drivers and occupants. Thus, Defendants breached their implied warranty of merchantability.

270. Under normal circumstances, a properly designed and manufactured Timing

Chain System should last for the life of the engine or at least 120,000 miles without the need for repair or replacement. Defendants cannot disclaim this implied warranty as they knowingly sold or leased a defective product.

271. Defendants were provided notice of the Timing Chain System defect by numerous consumer complaints made to their authorized dealers nationwide, complaints to NHTSA, and through their own testing. Affording Defendants a reasonable opportunity to cure their breach of implied warranties would be unnecessary and futile here because Defendants have known of and concealed the Timing Chain System defect and, on information and belief, have refused to repair or replace the Timing Chain System free of charge outside of the warranty periods despite the defect’s existence at the time of sale or lease of the Class Vehicles.

272. As a direct and proximate result of Defendants’ breach of the implied warranty of merchantability, Plaintiffs and members of the Classes have been damaged in an amount to be proven at trial.

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273. Defendants’ attempt to disclaim or limit the implied warranty of merchantability vis-à-vis consumers is unconscionable and unenforceable here. Specifically, Defendants’ warranty limitation is unenforceable because they knowingly sold or leased a defective product without informing consumers about the defect. The time limits contained in Defendants’ warranty periods were also unconscionable and inadequate to protect Plaintiffs and members of the Classes. Among other things, Plaintiffs and members of the Classes did not determine these time limitations, the terms of which unreasonably favored Defendants. A gross disparity in bargaining power existed between Defendants and members of the Classes, and Defendants knew or should have known that the Class Vehicles were defective at the time of sale or lease and that the Timing Chain Systems would fail well before their useful lives.

274. Further, as manufacturers of consumer goods, Defendants are precluded from excluding or modifying an implied warranty of merchantability or limiting consumer remedies for breach of this warranty.

275. Plaintiffs and members of the Classes have had sufficient direct dealings with

Defendants or their agents (dealerships) to establish privity of contract between Defendants, on the one hand, and Plaintiffs and members of the Classes, on the other hand. Nonetheless, privity is not required here because Plaintiffs and each of the other members of the Classes are intended third-party beneficiaries of contracts between Defendants and their dealers, and specifically, of their implied warranties. The dealers were not intended to be the ultimate users of the Class

Vehicles and have no rights under the warranty agreements provided with the Class Vehicles; the warranty agreements were designed for and intended to benefit purchasers and lessees of the

Class Vehicles only.

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276. Plaintiffs and members of the Classes have complied with all obligations under

the warranty, or otherwise have been excused from performance of said obligations as a result of

Defendants’ conduct described herein.

277. Class Vehicles are not reliable and owners of these vehicles have lost confidence

in the ability of Class Vehicles to perform the function of safe reliable transportation without the

likelihood of unanticipated sudden catastrophic engine failure. Defendants are estopped by their

conduct, as alleged herein, from disclaiming any and all implied warranties with respect to the

Timing Chain System in Class Vehicles.

278. The applicable statute of limitations for the implied warranty claim has been

tolled by the discovery rule, fraudulent concealment and the terms of the express warranty.

COUNT VI

VIOLATION OF THE MAGNUSON-MOSS WARRANTY ACT (“MMWA”), 15 U.S.C. § 2301 ET SEQ . (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

279. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

280. Plaintiffs bring this count on behalf of themselves and the Nationwide Class or,

alternatively, on behalf of the Sub-Classes.

281. Plaintiffs satisfy the MMWA jurisdictional requirement because they allege

diversity jurisdiction under CAFA, 28 U.S.C. § 1332(d)(2).

282. Plaintiffs and members of the Classes are “consumers” within the meaning of the

Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(3).

283. Defendants are “supplier[s]” and “warrantor[s]” within the meaning of the

Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(4)-(5).

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284. The Class Vehicles are “consumer products” within the meaning of the

Magnuson-Moss Warranty Act, 15 U.S.C. § 2301(1).

285. The MMWA provides a cause of action for any consumer who is damaged by the

failure of a warrantor to comply with a written or implied warranty. See 15 U.S.C. § 2310(d)(1).

286. Defendants provided Plaintiffs and members of the Classes with one or more

express warranties, which are covered under 15 U.S.C. § 2301(6). For illustrative purposes,

Defendants currently provide: (1) a New Vehicle Limited Warranty which includes “virtually

bumper to bumper coverage for 3 years or 36,000 miles, whichever occurs first” or 4 years or

50,000 miles, whichever occurs first; and/or (2) a Powertrain Limited Warranty for “5 years or

60,000 miles whichever occurs first, from the date the vehicle was first placed in service,” which

covers “all internal [engine] parts” including the Timing Chain System. Under warranties

provided to members of the Classes, Defendants promised to repair or replace covered defective

engine components arising out of defects in materials and/or workmanship, including the Timing

Chain System, at no cost to owners and lessees of the Class Vehicles. However, given the latent

nature of the defective Timing Chain System, Defendants knew or should have known that the

majority of Timing Chain System failures occur outside of the warranty periods.

287. Any attempt by Defendants to disclaim or limit their express or implied

warranties is unconscionable and unenforceable here. Specifically, Defendants’ warranty

limitations are unenforceable because they knowingly sold or leased a defective product without

informing consumers about the defect. The time limits contained in Defendants’ warranty

periods were also unconscionable and inadequate to protect Plaintiffs and members of the

Classes. Among other things, Plaintiffs and members of the Classes did not determine these time

limitations, the terms of which unreasonably favored Defendants. A gross disparity in

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bargaining power existed between Defendants and members of the Classes, and Defendants knew or should have known that the Class Vehicles were defective at the time of sale or lease and that the Timing Chain Systems would fail well before their useful lives.

288. The Class Vehicles’ implied warranties are covered under 15 U.S.C. § 2301(7).

289. Defendants breached these warranties by misrepresenting the standard, quality or grade of the Class Vehicles and failing to disclose and fraudulently concealing the existence of the Timing Chain System defect. Without limitation, the Class Vehicles share a common Timing

Chain System defect in design, material, manufacturing and/or workmanship that is prone to premature failure and fails to operate as represented by Defendants. Through their issuance of

TSBs to their authorized dealers, Defendants have acknowledged that the Class Vehicles are not of the standard, quality or grade that Defendants represented at the time of purchase or lease and contain the Timing Chain System defect.

290. Plaintiffs and members of the Classes have had sufficient direct dealings with

Defendants or their agents (dealerships) to establish privity of contract between Defendants, on the one hand, and Plaintiffs and members of the Classes, on the other hand. Nonetheless, privity is not required here because Plaintiffs and each of the other members of the Classes are intended third-party beneficiaries of contracts between Defendants and their dealers, and specifically, of their implied warranties. The dealers were not intended to be the ultimate users of the Class

Vehicles and have no rights under the warranty agreements provided with the Class Vehicles; the warranty agreements were designed for and intended to benefit purchasers and lessees of the

Class Vehicles only.

291. Affording Defendants a reasonable opportunity to cure their breach of written warranties would be unnecessary and futile. At the time of sale or lease of each Class Vehicle

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and all relevant times thereafter, Defendants knew of the material misrepresentations and omissions concerning the standard, quality or grade of the Class Vehicles and the existence of the Timing Chain System defect, but failed to repair or replace the Timing Chain System and/or disclose the Timing Chain System defect. Under the circumstances, the remedies available under any informal settlement procedure would be inadequate and any requirement that Plaintiffs resort to an informal dispute resolution procedure and/or afford Defendants a reasonable opportunity to cure their breach of warranties is excused and thereby deemed satisfied.

292. Plaintiffs and members of the Classes would suffer economic hardship if they returned their Class Vehicles, but did not receive the return of all payments made by them to

Defendants. Thus, Plaintiffs and members of the Classes have not re-accepted their Class

Vehicles by retaining them.

293. The amount in controversy of Plaintiffs’ individual claims meets or exceeds the sum of $25. The amount in controversy of this action exceeds the sum of $50,000, exclusive of interest and costs, computed on the basis of all claims to be determined in this lawsuit.

294. Plaintiffs, individually and on behalf of the Classes, seek all damages permitted by law, including diminution in the value of the Class Vehicles, in an amount to be proven at trial.

COUNT VII

UNJUST ENRICHMENT (ON BEHALF OF THE NATIONWIDE CLASS OR, ALTERNATIVELY, ON BEHALF OF THE SUB-CLASSES)

295. Plaintiffs incorporate and reallege each preceding paragraph as though fully set forth herein.

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296. Plaintiffs bring this count on behalf of themselves and the members of the

Nationwide Class or, alternatively, on behalf of the Sub-Classes.

297. Plaintiffs and members of the Classes conferred a benefit on Defendants by leasing or purchasing the Class Vehicles. Defendants were and should have been reasonably expected to provide Class Vehicles free from the Timing Chain System defect.

298. Defendants unjustly profited from the lease and sale of the Class Vehicles at inflated prices as a result of their false representations, omissions and concealment of the Timing

Chain System defect in the Class Vehicles.

299. As a proximate result of Defendants’ false representations, omissions and concealment of the Timing Chain System defect in the Class Vehicles, and as a result of

Defendants’ ill-gotten gains, benefits and profits, Defendants have been unjustly enriched at the expense of Plaintiffs and members of the Classes. It would be inequitable for Defendants to retain their ill-gotten profits without paying the value thereof to Plaintiffs and members of the

Classes.

300. Plaintiffs and members of the Classes are entitled to restitution of the amount of

Defendants’ ill-gotten gains, benefits and profits, including interest, resulting from their unlawful, unjust and inequitable conduct.

301. Plaintiffs and members of the Classes seek an order requiring Defendants to disgorge their gains and profits to Plaintiffs and members of the Classes, together with interest, in a manner to be determined by the Court.

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COUNT VIII

VIOLATION OF THE NEW JERSEY CONSUMER FRAUD ACT (“NJCFA”), N.J.S.A. § 56:8-2 ET SEQ. (ON BEHALF OF PLAINTIFFS DRAKE, ZIMAND AND THE NEW JERSEY SUB-CLASS)

302. Plaintiffs Drake and Zimand incorporate and reallege each preceding paragraph as though fully set forth herein.

303. Plaintiffs Drake and Zimand bring this claim on behalf of themselves and the members of the New Jersey Sub-Class.

304. The NJCFA prohibits “[t]he act, use or employment by any person of any unconscionable commercial practice, deception, fraud, false pretense, false promise, misrepresentation, or the knowing, concealment, suppression, or omission of any material fact with intent that others rely upon such concealment, suppression or omission, in connection with the sale or advertisement of any merchandise or real estate, or with the subsequent performance of such person as aforesaid, whether or not any person has in fact been misled, deceived or damaged thereby, is declared to be an unlawful practice . . . ” N.J.S.A. § 56:8-2.

305. Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class are consumers who purchased or leased Class Vehicles for personal, family, or household use.

306. In violation of the NJCFA, Defendants employed unconscionable commercial practices, deception, fraud, false pretense and/or false promise by providing Class Vehicles that contain the Timing Chain System defect and present an undisclosed safety risk to drivers and occupants of the Class Vehicles. Further, Defendants misrepresented the standard, quality or grade of the Class Vehicles which were sold or leased with the latent defect and failed to disclose the Timing Chain System defect and corresponding safety risk in violation of the NJCFA.

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307. Defendants’ misrepresentations and fraudulent omissions were material to

Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class. When Plaintiffs Drake,

Zimand and members of the New Jersey Sub-Class purchased or leased their Class Vehicles, they reasonably relied on the reasonable expectation that the Class Vehicles’ Timing Chain

Systems would last beyond the warranty periods without need for repair or replacement and/or would not pose an unavoidable safety risk. Had Defendants disclosed that the Timing Chain

System was prone to premature failure and/or an unavoidable safety risk, Plaintiffs Drake,

Zimand and members of the New Jersey Sub-Class would not have purchased or leased the Class

Vehicles, or would have paid less for their vehicles. Further, had Defendants disclosed that the

Timing Chain Systems in the Class Vehicles would not last beyond the warranty periods without need for repair or replacement, Plaintiffs Drake, Zimand and members of the New Jersey Sub-

Class would have demanded repair or replacement during the warranty periods at no cost to

Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class—as provided for in

Defendants’ warranties.

308. Defendants knowingly concealed, suppressed and/or omitted the existence of the

Timing Chain System defect and safety risk in the Class Vehicles at the time of sale or lease and at all relevant times thereafter.

309. Defendants knew that the Timing Chain System defect would cause the Timing

Chain System to fail before the useful life of the engine and unconscionably limited the

manufacturer’s warranty coverage so that the Timing Chain System would fail beyond the

warranty periods, thereby unlawfully transferring the costs of repair of the Timing Chain System

to Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class. Further, Defendants

unconscionably marketed the Class Vehicles to uninformed consumers in order to maximize

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profits by selling additional Class Vehicles containing the undisclosed latent defect and corresponding safety risk.

310. Defendants owed a duty to disclose the Timing Chain System defect and its corresponding safety risk to Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class because Defendants possessed superior and exclusive knowledge regarding the defect and the risks associated with the Timing Chain System’s failure. Rather than disclose the defect,

Defendants intentionally concealed the defect with the intent to mislead Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class in order to sell additional Class Vehicles and wrongfully transfer the cost of repair or replacement of the Timing Chain System or failed engine to Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class.

311. Defendants knew, or should have known, that the Timing Chain System defect in the Class Vehicles could cause catastrophic engine failure leading to a loss of engine power while the vehicle was operating. Further, Defendants knew, or should have known, that such loss of power could cause the Class Vehicles to become involved in rear-end collisions or other accidents, putting vehicle operators, passengers, and other motorists at risk for injury.

312. Had Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class known about the Timing Chain System defect at the time of purchase, including the safety hazard posed by the defect and the monetary cost of repair, they would not have bought the Class Vehicles or would have paid much less for them.

313. As a direct and proximate result of Defendants’ wrongful conduct in violation of the NJCFA, Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class have suffered and continue to suffer harm by the threat of sudden and unexpected failure of the Timing Chain

System and/or actual damages in the amount of the cost to replace the Timing Chain System,

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essential engine parts or the entire engine, and damages to be determined at trial. Plaintiffs

Drake, Zimand and members of the New Jersey Sub-Class have also suffered the ascertainable loss of the diminished value of their vehicles.

314. As a result of Defendants’ fraudulent and/or deceptive conduct, misrepresentations and/or knowing omissions, Plaintiffs Drake, Zimand and members of the

New Jersey Sub-Class are entitled to actual damages, treble damages, costs, attorneys’ fees, and other damages to be determined at trial. See N.J.S.A. § 56:8-19. Plaintiffs Drake, Zimand and members of the New Jersey Sub-Class also seek an order enjoining Defendants’ unlawful, fraudulent and/or deceptive practices, and any other just and proper declaratory or equitable relief available under the NJCFA. See N.J.S.A. § 56:8-19.

COUNT IX

VIOLATION OF THE ARKANSAS DECEPTIVE TRADE PRACTICE ACT (“ADTPA”), ARK. CODE. ANN. § 4-88-101 ET SEQ . (ON BEHALF OF PLAINTIFF STOCKALPER AND THE ARKANSAS SUB-CLASS)

315. Plaintiff Stockalper incorporates and realleges each preceding paragraph as though fully set forth herein.

316. Plaintiff Stockalper brings this count on behalf of herself and members of the

Arkansas Sub-Class.

317. Defendants, Plaintiff Stockalper and members of the Arkansas Sub-Class are

“persons” within the meaning of the ADTPA. See Ark. Code Ann. § 4-88-102(5).

318. The Class Vehicles are “goods” within the meaning of the ADTPA. See Ark.

Code Ann. § 4-88-102(4).

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319. The ADTPA prohibits “[d]eceptive and unconscionable trade practices,”

including, inter alia, engaging in any “unconscionable, false, or deceptive act or practice in

business, commerce, or trade.” Ark. Code Ann. § 4-88-107(a)(10).

320. The ADTPA also prohibits the following in connection with the sale or

advertisement of any goods: “(1) [t]he act, use, or employment by any person of any deception,

fraud, or false pretense; or (2) [t]he concealment, suppression, or omission of any material fact

with intent that others rely upon the concealment, suppression, or omission.” Ark. Code Ann. §

4-88-108.

321. In violation of the ADTPA, Defendants employed deceptive and/or

unconscionable acts or practices, fraud, false pretense, misrepresentations, or concealment,

suppression or omission of any material fact with intent that others rely upon such concealment,

suppression or omission, in connection with the sale and/or lease of Class Vehicles. Defendants

knowingly concealed, suppressed and/or omitted material facts regarding the defective Timing

Chain System and misrepresented the standard, quality or grade of the Class Vehicles, which

directly caused harm to Plaintiff Stockalper and members of the Arkansas Sub-Class.

322. Defendants intentionally and knowingly misrepresented and omitted facts

regarding the Timing Chain System defect with the intent to mislead Plaintiff Stockalper and

members of the Arkansas Sub-Class. Defendants knew, or should have known, that the Timing

Chain System defect was a latent defect and that the Timing Chain System was likely to fail

outside of the periods of the manufacturer’s warranties. Defendants also knew, or should have

known, that the Timing Chain System defect in the Class Vehicles could cause catastrophic

engine failure leading to a loss of engine power while the vehicle was operating. Further,

Defendants knew, or should have known, that such loss of power could cause the Class Vehicles

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to become involved in rear-end collisions or other accidents, putting vehicle operators, passengers, and other motorists at risk for injury.

323. Defendants owed a duty to disclose the Timing Chain System defect and its corresponding safety risk to Plaintiff Stockalper and members of the Arkansas Sub-Class because they possessed superior and exclusive knowledge regarding the defect and the risks associated with the Timing Chain System’s failure. Rather than disclose the defect, Defendants engaged in deceptive trade practices in order to sell additional Class Vehicles and wrongfully transfer the cost of repair or replacement of the Timing Chain System to Plaintiff Stockalper and members of the Arkansas Sub-Class.

324. Defendants’ unconscionable or deceptive acts or practices, affirmative misrepresentations and/or material omissions regarding the Timing Chain System defect were intended to mislead consumers and misled Plaintiff Stockalper and members of the Arkansas

Sub-Class.

325. At all relevant times, Defendants’ unconscionable or deceptive acts or practices,

affirmative misrepresentations and/or omissions regarding the Timing Chain System defect and

its corresponding safety risk were material to Plaintiff Stockalper and members of the Arkansas

Sub-Class. When Plaintiff Stockalper and members of the Arkansas Sub-Class purchased or

leased their Class Vehicles, they reasonably relied on the reasonable expectation that the Class

Vehicles’ Timing Chain Systems would last beyond the warranty periods without need for repair

or replacement and would not pose an unavoidable safety risk. Had Defendants disclosed that

the Timing Chain System was prone to premature failure and/or presented an unavoidable safety

risk, Plaintiff Stockalper and members of the Arkansas Sub-Class would not have purchased or

leased the Class Vehicles, or would have paid less for their vehicles. Further, had Defendants

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disclosed that the Timing Chain Systems in the Class Vehicles would not last beyond the

warranty periods without need for repair or replacement, Plaintiff Stockalper and members of the

Arkansas Sub-Class would have demanded repair or replacement during the warranty periods at

no cost—as provided for in Defendants’ warranties.

326. Defendants had a continuous duty to Plaintiff Stockalper members of the

Arkansas Sub-Class to refrain from unfair and deceptive practices under the ADTPA and to

disclose the Timing Chain System defect. Defendants’ unconscionable or deceptive acts or

practices, affirmative misrepresentations and/or material omissions regarding the Timing Chain

System defect and corresponding safety risk are substantially injurious to consumers. As a result

of Defendants’ knowing, intentional concealment and/or omission of the Timing Chain System

defect in violation of the ADTPA, Plaintiff Stockalper and members of the Arkansas Sub-Class

have suffered harm and/or continue to suffer harm by the threat of sudden and unexpected failure

of the Timing Chain System and/or actual damages in the amount of the cost to replace the

Timing Chain System, essential engine parts or the entire engine, and damages to be determined

at trial. Owners and lessees of Class Vehicles also suffered an ascertainable loss in the form of

the diminished value of their vehicles as a result of Defendants’ deceptive and unfair acts and

practices in the course of their business.

327. Defendants’ unlawful acts and practices occurred in the conduct of business,

commerce, or trade in commerce.

328. Defendants have knowingly and willfully engaged in the unfair and deceptive

trade practices alleged herein. Further, Defendants unconscionably marketed the Class Vehicles

to uninformed consumers in order to maximize profits by selling additional Class Vehicles

containing the undisclosed latent defect and corresponding safety risk.

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329. Defendants’ unlawful acts and practices affect the public interest and present a

continuing safety risk to Plaintiff Stockalper and members of the Arkansas Sub-Class as well as

the public.

330. As a direct and proximate result of Defendants’ violations of the ADTPA,

Plaintiff Stockalper and members of the Arkansas Sub-Class have suffered actual damages

and/or injury in fact.

331. Plaintiff Stockalper and members of the Arkansas Sub-Class seek actual damages

against Defendants in an amount to be determined at trial and punitive damages because

Defendants acted wantonly or with such conscious indifference to the consequences that malice

may be inferred.

332. Plaintiff Stockalper and members of the Arkansas Sub-Class also seek an order

enjoining Defendants’ unfair, unlawful, and/or deceptive practices, awarding costs and attorneys’

fees, and any other just and proper relief available under the ADTPA.

COUNT X

VIOLATION OF CALIFORNIA’S UNFAIR COMPETITION LAW (“UCL”) CAL. BUS. AND PROFESSIONS CODE. ANN. § 17200 ET SEQ . (ON BEHALF OF PLAINTIFFS SWIHART, PIUMARTA, NADIRI, ELLAHIE AND THE CALIFORNIA SUB-CLASS)

333. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie incorporate and reallege each

preceding paragraph as though fully set forth herein.

334. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie assert this count on behalf of

themselves and members of the California Sub-Class.

335. The UCL prohibits all unlawful, unfair or deceptive business practices.

Defendants’ conduct as alleged herein constitutes unlawful, unfair and deceptive business

practices.

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336. Defendants’ breach of their express and implied warranties as described herein

violates § 2313 of California’s Commercial Code and Cal. Civ. Code §§ 1792 et seq. of the

Song-Beverly Consumer Warranty Act. Defendants’ conduct as described herein further violates

the Consumers Legal Remedies Act, Cal. Civ. Code §§ 1770 et seq. These violations are

independent and unlawful unfair and deceptive business practices.

337. Defendants’ sale of Class Vehicles without disclosing the existence of the Timing

Chain System defect while misrepresenting the supposed quality and reliability attributes of

these vehicles is an unlawful unfair and deceptive business practice within the context of the

UCL. This conduct was unlawful, unfair and deceptive because it was intended to, and did in

fact, mislead and deceive Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the

California Sub-Class. Had Defendants disclosed to Plaintiffs Swihart, Piumarta, Nadiri and

Ellahie and members of the California Sub-Class that Class Vehicles incorporated a defective

Timing Chain System or that the system had been inadequately tested, they would not have

purchased their respective vehicles or paid less for their respective Class Vehicle.

338. Defendants knew that if the defects in the Timing Chain System or inadequate

testing were disclosed to the consumer public prior to purchase, consumers at large would react

similarly and elect not to purchase or lease Class Vehicles, or would pay substantially less for

them. As a result, Defendants intentionally concealed their knowledge of the Timing Chain

System and their inadequate testing.

339. As a direct, proximate and foreseeable result of Defendants’ unlawful, unfair and

deceptive business practices, Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the

California Sub-Class sustained an ascertainable loss and actual damages in that they expended

thousands of dollars to purchase the defective Class Vehicles, and then more to have the

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defective engines repaired or replaced. Moreover, because of the undisclosed defects, Plaintiffs

Swihart, Piumarta, Nadiri and Ellahie and members of the California Sub-Class sustained a loss

or diminution in the value of their vehicles. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and

members of the California Sub-Class have or will incur incidental damages attributable to the

loss of use of their Class Vehicles while the vehicles were or will be repaired.

340. Defendants’ unlawful, unfair and/or deceptive business practices caused Plaintiffs

Swihart, Piumarta, Nadiri and Ellahie and members of the California Sub-Class to convey money

and benefits to Defendants including but not limited to the purchase price or lease payments for

their Class Vehicles and/or repair costs.

341. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the California

Sub-Class request an order of restitution forcing Defendants to restore to them the benefits and

monies they conveyed in connection with their purchase of Class Vehicles and repair costs

related to the defective Timing Chain System.

342. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the California

Sub-Class demand judgment against Defendants for multiple damages, interest, costs and

attorneys’ fees.

COUNT XI

VIOLATION OF THE CALIFORNIA CONSUMER LEGAL REMEDIES ACT, CAL. CIV. CODE §§ 1750 ET SEQ. (ON BEHALF OF PLAINTIFFS SWIHART, PIUMARTA, NADIRI AND ELLAHIE AND THE CALIFORNIA SUB-CLASS)

343. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie incorporate and reallege each

preceding paragraph as though fully set forth herein.

344. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie assert this count on behalf of

themselves and members of the California Sub-Class.

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345. Defendants violated Cal. Civ. Code § 1770(a)(5) by representing that Class

Vehicles have characteristics, uses, benefits and/or qualities which they do not possess.

346. Defendants violated Cal. Civ. Code § 1770(a)(7) by representing that Class

Vehicles are of a particular standard, quality, or grade, when they are not, and in particular, by

supplying vehicles which contain a defect which involves a safety issue.

347. Defendants violated Cal. Civ. Code § 1770(a)(9) by advertising Class Vehicles

with the intent not to sell them as advertised.

348. Defendants violated Cal. Civ. Code § 1770(a)(16) by representing that the subject

of a transaction has been supplied in accordance with a previous representation when it was not.

349. Defendants conducted the above-described acts or practices in transactions

intended to result, or which did result, in the sale of Class Vehicles to customers for personal,

family, or household use.

350. Defendants violated the Consumers Legal Remedies Act, Cal. Civ. Code § 1770

et seq . and committed other unfair and deceptive business practices as described in this

complaint. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the California Sub-

Class request equitable and injunctive relief authorized by the Consumers Legal Remedies Act

and for such additional relief as necessary.

351. Plaintiffs Swihart, Piumarta, Nadiri and Ellahie and members of the California

Sub-Class request judgment against Defendants, including monetary and compensatory damages

and injunctive relief as set out in this complaint, together with costs and attorneys’ fees.

352. More than 30 days ago Plaintiffs Swihart, Piumarta, Nadiri and Ellahie sent

Defendants a pre-suit demand letter and have received no communications within the thirty day

response period.

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COUNT XII

VIOLATION OF THE COLORADO CONSUMER PROTECTION ACT, COL. REV. STAT. §§ 6-1-101 ET SEQ. (ON BEHALF OF PLAINTIFF LEMOINE AND THE COLORADO SUB-CLASS)

353. Plaintiff LeMoine incorporates and realleges each preceding paragraph as though

fully set forth herein.

354. Plaintiff LeMoine asserts this count on behalf of herself and members of the

Colorado Sub-Class.

355. Plaintiff LeMoine and members of the Colorado Sub-Class are persons within the

context of the Colorado Consumer Protection Act (hereinafter “CCPA”), Col. Rev. Stat.§§ 6-1-

101 et seq . and specifically § 6-1-102(6).

356. Defendants are persons within the context of the CCPA, Col. Rev. Stat. §§ 6-1-

101 et seq . and specifically § 6-1-102(6).

357. Defendants are engaged in deceptive trade practices within the context of the

CCPA, Col. Rev. Stat. § 6-1-105(1)(e), (g) and (u), inter alia .

358. Plaintiff LeMoine and members of the Colorado Sub-Class purchased and/or

leased Class Vehicles for personal, family or household use.

359. Defendants committed unconscionable, deceptive and unfair trade practices in the

course of trade and commerce within the context of the CCPA as described in this complaint.

360. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff LeMoine and members of the Colorado Sub-Class would

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rely upon their misrepresentations in connection with the sale and/or advertisement of Class

Vehicles.

361. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff LeMoine and members of the Colorado Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

362. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff LeMoine and members of the Colorado Sub-Class the characteristics

of Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, engines in Class Vehicles

contained a known defect as described in this complaint that caused the Timing Chain System to

prematurely fail.

363. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

364. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

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365. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

366. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of the CCPA.

367. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff LeMoine and members of the Colorado Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff LeMoine and members of the Colorado Sub-Class

had no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

368. If Defendants had not concealed class engine defects from Plaintiff LeMoine and

members of the Colorado Sub-Class within the express warranty period, Timing Chain Systems

would have been repaired without cost to purchasers as promised under the original warranty.

369. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

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370. Defendants violated the CCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

371. Defendants violated the CCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that Class Vehicles contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

372. Defendants further violated the CCPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

373. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the CCPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of Class Vehicles owned by LeMoine and

members of the Colorado Sub-Class.

374. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of CCPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

375. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff LeMoine and members of the Colorado Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

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376. Plaintiff LeMoine and members of the Colorado Sub-Class experienced

premature class engine failure, increased repair and maintenance costs and incurred other

substantial monetary damages and inconvenience.

377. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

378. Plaintiff LeMoine and members of the Colorado Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

COUNT XIII

VIOLATION OF CONNECTICUT UNFAIR TRADE PRACTICES ACT, CONN. GEN. STAT. ANN. §§ 42-110A ET SEQ. (ON BEHALF OF PLAINTIFFS SERBIA, MOLWITZ, GAUDET AND THE CONNECTICUT SUB-CLASS)

379. Plaintiffs Serbia, Molwitz and Gaudet incorporate by reference all allegations in

the above preceding paragraphs as if set forth fully in this count.

380. Plaintiffs Serbia, Molwitz and Gaudet assert this count on behalf of themselves

and members of the Connecticut Sub-Class.

381. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

are persons within the context of the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat.

Ann. §§ 42-110a et seq. (hereinafter “CUTPA”) and specifically § 42-110a(3).

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382. Defendants are persons within the context of CUTPA, § 42-110a(3) and were

engaged in trade and commence under CUTPA, § 42-110a(4).

383. Defendants committed unfair and deceptive acts in the course of trade and

commerce as described in this complaint in violation of CUTPA, § 42-110b(a).

384. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-

Class the required maintenance and/or maintenance intervals of Class Vehicles including but not

limited to the Timing Chain System.

385. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-

Class the characteristics of Class Vehicles with respect to design, manufacture, durability,

longevity, maintenance and operating costs.

386. Defendants fraudulently, intentionally, negligently and/or recklessly concealed

from Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class the

defects in the Class Vehicles even though Defendants knew or should have known of design and

manufacturing defects shortly after production of the Class Vehicles commenced.

387. Defendants had actual knowledge that design and manufacturing defects as

described in this complaint were causing extensive irreversible premature performance

degradation in Class Vehicles shortly after production of the Class Vehicles commenced.

388. Defendants actively suppressed the fact that the 2.0L TSI and TFSI engines were

prematurely failing because of design and manufacture defects and incorrect maintenance

recommendations and maintenance intervals.

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389. Defendants secretly repaired some Class Vehicles to prevent dissemination of

defects.

390. Defendants intended or should have known that Plaintiffs Serbia, Molwitz and

Gaudet and members of the Connecticut Sub-Class would rely upon misrepresented

characteristics of Class Vehicles with respect to design and manufacture and information in the

owner’s manual and USA Warranty and Maintenance pamphlet.

391. Although Defendants knew defects in 2.0L TSI and TFSI engines and

misinformation in the owner’s manual and USA Warranty and Maintenance pamphlet were

causing premature class engine failures, Defendants attempted to shift the responsibility and cost

for repairs to individual Class Vehicle owners.

392. These schemes included blaming Class Vehicle engine failures on owners for

poor or improper maintenance, improper engine oil, improper gasoline and other conditions for

which Defendants were not responsible.

393. Rather than conduct an open and fair inspection and repair procedure for the

Timing Chain System in class engines, Defendants employed unfair and deceptive trade

practices to deny repairs or repair reimbursements.

394. If Defendants had not concealed Class Vehicles defects from Plaintiffs Serbia,

Molwitz and Gaudet and members of the Connecticut Sub-Class within the express warranty

period, Class Vehicles would have repaired without cost under the original warranty.

395. Defendants fraudulently concealed unmistakable manifestations of impending

class engine Timing Chain System failures within the express warranty period without

inspecting, repairing or replacing damaged 2.0L TSI and TFSI engine Timing Chain System

components.

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396. Defendants failed to inform members of the Connecticut Sub-Class prior to

purchase or lease that Class Vehicles were defectively designed and manufactured and were

accompanied by incorrect maintenance recommendations and maintenance intervals.

397. Defendants violated CUTPA by failing to inform members of the Connecticut

Sub-Class prior to purchase or lease that Class Vehicles would require premature replacement of

class engine Timing Chain System components. Defendants further violated CUTPA by failing

to inform prospective Class Vehicles purchasers and lessees that Defendants had not properly

tested the vehicles including but not limited to the 2.0L TSI and TFSI engine Timing Chain

System components.

398. Defendants repeatedly violated CUTPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of 2.0L TSI and TFSI engine Timing Chain System failures.

399. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants that violates the proscribed conduct of CUTPA occurred

within the three-year limitations period set out in the statute.

400. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

purchased or leased Class Vehicles and sustained financial harm.

401. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

experienced premature 2.0L TSI and TFSI engine failure, diminution of vehicles resale value,

increased maintenance costs and incurred other substantial monetary damages and inconvenience

as recognized by CUTPA, § 42-110g(a).

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402. Pursuant to Conn. Gen. Stat. § 42-110g(c), a copy of this complaint is being

contemporaneously mailed to the Attorney General and the Commissioner of Consumer

Protection with the filing of this document.

403. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous; and, caused unavoidable

substantial injury to Class Vehicles owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

404. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

demand judgment against Defendants together with damages, interest, costs, attorneys’ fees and

injunctive relief.

COUNT XIV

VIOLATION OF THE CONNECTICUT PRODUCT LIABILITY ACT, CONN. GEN. STAT., §§ 52-572M TO 52-572Q (ON BEHALF OF PLAINTIFFS SERBIA, MOLWITZ, GAUDET AND THE CONNECTICUT SUB-CLASS)

405. Plaintiffs Serbia, Molwitz and Gaudet incorporate by reference all allegations in

the above preceding paragraphs as if set forth fully in this count.

406. Plaintiffs Serbia, Molwitz and Gaudet assert this count on behalf of themselves

and members of the Connecticut Sub-Class.

407. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

are claimants within the context of Conn. Gen. Stat., §§ 52-572m to 52-572q (hereinafter

“Connecticut Product Liability Act”), specifically § 52-572m(c).

408. Defendants are product sellers and manufacturers and within the context of the

Connecticut Product Liability Act, § 52-572m(a) and (e).

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409. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

purchased and/or leased Class Vehicles for personal, family or household use.

410. Defendants breached their express and implied warranties as described in this

complaint.

411. As a result of Defendants’ warranty breaches as described in this complaint,

Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class suffered harm

as described in this complaint and recognized in Conn. Gen. Stat., § 52-572n(a).

412. Defendants are liable under the Connecticut Product Liability Act for their

defective and unreasonably dangerous Class Vehicles and other conduct described in this

complaint.

413. Plaintiffs Serbia, Molwitz and Gaudet and members of the Connecticut Sub-Class

demand judgment against Defendants including restitution, disgorgement, statutory and actual

monetary damages, multiple damages, interest, costs and attorneys’ fees.

COUNT XV

VIOLATION OF FLORIDA DECEPTIVE AND UNFAIR TRADE PRACTICES ACT (“FDUTPA”), FLA. STAT. § 501.201 ET SEQ . (ON BEHALF OF PLAINTIFFS BLANCHARD, LOPEZ, MEKBEB, A. FLECK, W. FLECK AND THE FLORIDA SUB-CLASS)

414. Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck incorporate and

reallege each preceding paragraph as though fully set forth herein.

415. Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck bring this claim on

behalf of themselves and members of the Florida Sub-Class.

416. The FDUTPA prohibits “[u]nfair methods of competition, unconscionable acts or

practices” and “unfair or deceptive acts or practices in the conduct of any trade or commerce.”

Fla. Stat. § 501.204.

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417. Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck and members of the

Florida Sub-Class are “consumers” and “interested parties or persons” under the FDUTPA. Fla.

Stat. § 501.203(6) and (7).

418. Defendants are engaged in the conduct of “trade or commerce” as defined by the

FDUTPA. Fla. Stat. § 501.203(8).

419. One of the primary purposes of the FDUTPA is to “protect the consuming public”

from “those who engage in unfair methods of competition, or unconscionable, deceptive, or

unfair acts or practices in the conduct of any trade or commerce.” Fla. Stat. § 501.202(2).

420. Defendants committed unfair or deceptive acts or practices, affirmative

misrepresentations, material omissions and/or otherwise violated the FDUTPA. Defendants

intentionally and knowingly misrepresented the standard, quality or grade of the Class Vehicles

and intentionally and knowingly failed to disclose and concealed the Timing Chain System

defect. Defendants’ misrepresentation of the standard, quality or grade of the Class Vehicles and

failure to disclose the Timing Chain System defect constitute unfair acts or practices in violation

of the FDUTPA because they offend public policy, are immoral, unethical, oppressive, or

unscrupulous and/or cause substantial injury to consumers.

421. Defendants knew or should have known that the Class Vehicles were defective at

the time of sale or lease and that the Timing Chain System would fail before the useful life of the

engine. Given the latent nature of the defect, Defendants knew, or should have known, that the

majority of Timing Chain System failures would occur outside of the coverage periods of the

manufacturer’s warranties.

422. Defendants knew, or should have known, that the Timing Chain System defect in

the Class Vehicles could cause catastrophic engine failure leading to a loss of engine power

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while the vehicle was operating. Further, Defendants knew, or should have known, that such

loss of power could cause the Class Vehicles to become involved in rear-end collisions or other

accidents, putting vehicle operators, passengers, and other motorists at risk for injury.

423. Defendants owed a duty to disclose the Timing Chain System defect and its

corresponding safety risk to Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck and

members of the Florida Sub-Class because they possessed superior and exclusive knowledge

regarding the defect and the risks associated with the Timing Chain System’s failure. Rather

than disclose the defect, Defendants engaged in deceptive trade practices in order to sell

additional Class Vehicles and wrongfully transfer the cost of repair or replacement of the Timing

Chain System to Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck and members of

the Florida Sub-Class.

424. Defendants have knowingly and willfully engaged in the unfair and deceptive

trade practices alleged herein. Further, Defendants unconscionably marketed the Class Vehicles

to uninformed consumers in order to maximize profits by selling additional Class Vehicles

containing the undisclosed latent defect and corresponding safety risk.

425. Defendants’ unfair or deceptive acts or practices, affirmative misrepresentations

and/or material omissions regarding the Timing Chain System defect were likely to mislead a

reasonable consumer and misled Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck

and members of the Florida Sub-Class. When Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck

and W. Fleck and members of the Florida Sub-Class purchased or leased their Class Vehicles,

they reasonably relied on the reasonable expectation that the Class Vehicles’ Timing Chain

Systems would last beyond the warranty periods without need for repair or replacement and

would not pose an unavoidable safety risk. Had Defendants disclosed that the Timing Chain

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System was prone to premature failure and/or an unavoidable safety risk, Plaintiffs Blanchard,

Lopez, Mekbeb, A. Fleck and W. Fleck and members of the Florida Sub-Class would not have

purchased or leased the Class Vehicles, or would have paid less for their vehicles. Further, had

Defendants disclosed that the Timing Chain Systems in the Class Vehicles would not last beyond

the warranty periods without need for repair or replacement, Plaintiffs Blanchard, Lopez,

Mekbeb, A. Fleck and W. Fleck and members of the Florida Sub-Class would have demanded

repair or replacement during the warranty periods at no cost—as provided for in Defendants’

warranties.

426. Defendants’ unfair or deceptive acts or practices, affirmative misrepresentations

and/or material omissions regarding the Timing Chain System defect and corresponding safety

risk are substantially injurious to consumers. As a direct and proximate result of Defendants

knowing, intentional concealment of the Timing Chain System defect in violation of the

FDUTPA, Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck and members of the

Florida Sub-Class have suffered harm and/or continue to suffer harm by the threat of sudden and

unexpected failure of the Timing Chain System and/or actual damages in the amount of the cost

to replace the Timing Chain System, essential engine parts or the entire engine, and damages to

be determined at trial. Plaintiffs Blanchard, Lopez, Mekbeb, A. Fleck and W. Fleck and members

of the Florida Sub-Class have also suffered the ascertainable loss of the diminished value of their

vehicles.

427. As a result of Defendants’ FDUTPA violation, Plaintiffs Blanchard, Lopez,

Mekbeb, A. Fleck and W. Fleck and members of the Florida Sub-Class are entitled to, inter alia ,

injunctive and declaratory relief, actual damages, costs and attorneys’ fees. See Fla. Stat. §

501.211.

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COUNT XVI

VIOLATION OF THE GEORGIA UNIFORM DECEPTIVE TRADE PRACTICES ACT, GA. CODE ANN. §§ 10-1-370 ET SEQ . (ON BEHALF OF PLAINTIFF SMITH AND THE GEORGIA SUB-CLASS)

428. Plaintiff Smith incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

429. Plaintiff Smith asserts this count on behalf of himself and members of the Georgia

Sub-Class.

430. Plaintiff Smith and members of the Georgia Sub-Class are persons within the

context of the Georgia Uniform Deceptive Trade Practices Act (hereinafter “GUDTPA”), Ga.

Code Ann. §§ 10-1-370 et seq . and specifically § 10-1-371(5).

431. Plaintiff Smith and members of the Georgia Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

432. Defendants are persons within the context of GUDTPA, Ga. Code Ann. §§ 10-1-

370 et seq . and specifically § 10-1-371(5).

433. Defendants are engaged in deceptive trade practices in Georgia within the context

of GUDTPA, Ga. Code Ann. § 10-1-372(5), (7), (9) and (12) as described in this complaint.

434. Defendants committed unconscionable, deceptive and unfair trade practices in the

course of trade and commerce within the context of the GUDTPA as described in this complaint.

435. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff Smith and members of the Georgia Sub-Class would rely

upon their misrepresentations in connection with the sale and/or advertisement of Class Vehicles.

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436. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Smith and members of the Georgia Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

437. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Smith and members of the Georgia Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, engines in Class Vehicles

contained a known defect as described in this complaint that caused the Timing Chain System to

prematurely fail.

438. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

439. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

440. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

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441. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of the GUDTPA.

442. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Smith and members of the Georgia Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Smith and members of the Georgia Sub-Class had

no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

443. If Defendants had not concealed class engine defects from Plaintiff Smith and

members of the Georgia Sub-Class within the express warranty period, Timing Chain Systems

would have been repaired without cost to purchasers as promised under the original warranty.

444. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

445. Defendants violated the GUDTPA by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that class engines were defective in

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materials, workmanship, design and manufacture and were accompanied by incorrect

maintenance recommendations and maintenance intervals.

446. Defendants violated the GUDTPA by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that Class Vehicles contained defects and

would require regular replacement of expensive internal engine components such as the Timing

Chain System.

447. Defendants further violated the GUDTPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

448. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the GUDTPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of Class Vehicles owned by Smith and members

of the Georgia Sub-Class.

449. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of GUDTPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

450. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Smith and members of the Georgia Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

451. Plaintiff Smith and members of the Georgia Sub-Class experienced premature

class engine failure, increased repair and maintenance costs and incurred other substantial

monetary damages and inconvenience.

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452. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

453. Plaintiff Smith and members of the Georgia Sub-Class demand judgment against

Defendants for restitution, disgorgement, statutory and actual monetary damages including

multiple damages, interest, costs, attorneys’ fees and injunctive relief including a declaratory

judgment and an appropriate court order prohibiting Defendants from further deceptive acts and

practices described in this complaint.

COUNT XVII

VIOLATION OF THE GEORGIA FAIR BUSINESS PRACTICES ACT OF 1975, GA. CODE ANN. §§ 10-1-390 ET SEQ . (ON BEHALF OF PLAINTIFF SMITH AND THE GEORGIA SUB-CLASS)

454. Plaintiff Smith incorporates and realleges each preceding paragraph as though

fully set forth herein.

455. Plaintiff Smith asserts this count on behalf of himself and members of the Georgia

Sub-Class.

456. Plaintiff Smith and members of the Georgia Sub-Class are consumers within the

context of the Georgia Fair Business Practices Act Of 1975 (hereinafter “GFBPA”), Ga. Code

Ann. §§ 10-1-390 et seq . and specifically Ga. Code Ann. § 10-1-392(6).

457. Plaintiff Smith and members of the Georgia Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

458. Defendants are engaged in consumer transactions in Georgia within the context of

GFBPA, Ga. Code Ann. §§ 10-1-392(10).

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459. Defendants are engaged in unfair and deceptive consumer transactions practices

within the context of GFBPA, Ga. Code Ann. §§ 10-1-393(b)(2), (b)(7) and (b)(9) inter alia , as

described in this complaint.

460. Defendants committed unconscionable, deceptive and unfair trade practices in the

course of trade and commerce within the context of GFBPA as described in this complaint.

461. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff Smith and members of the Georgia Sub-Class would rely

upon their misrepresentations in connection with the sale and/or advertisement of Class Vehicles.

462. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Smith and members of the Georgia Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

463. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Smith and members of the Georgia Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, engines in Class Vehicles

contained a known defect as described in this complaint that caused the Timing Chain System to

prematurely fail.

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464. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

465. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

466. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

467. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of the GFBPA.

468. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Smith and members of the Georgia Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Smith and members of the Georgia Sub-Class had

no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

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469. If Defendants had not concealed class engine defects from Plaintiff Smith and

members of the Georgia Sub-Class within the express warranty period, Timing Chain Systems

would have been repaired without cost to purchasers as promised under the original warranty.

470. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

471. Defendants violated the GFBPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

472. Defendants violated the GFBPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that Class Vehicles contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

473. Defendants further violated the GFBPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

474. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the GFBPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of Class Vehicles owned by Smith and members

of the Georgia Sub-Class.

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475. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of GFBPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

476. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Smith and members of the Georgia Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

477. Plaintiff Smith and members of the Georgia Sub-Class experienced premature

class engine failure, increased repair and maintenance costs and incurred other substantial

monetary damages and inconvenience.

478. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

479. Plaintiff Smith and members of the Georgia Sub-Class fully complied with the

pre-litigation written notice requirements of GFBPA, Ga. Code Ann. § 10-1-399(b). The

Defendants failed to file a timely response to the written demand of Plaintiff Smith and members

of the Georgia Sub-Class. When the Defendants finally responded to the written demand, they

declined to provide any assistance to Plaintiff Smith and members of the Georgia Sub-Class with

respect to repair of their Class Vehicles’ Timing Chain System. The Defendants’ conduct in

responding to the written demand was unreasonable in relation to the injuries suffered by

Plaintiff Smith and members of the Georgia Sub-Class.

480. Plaintiff Smith and members of the Georgia Sub-Class demand judgment against

Defendants for restitution, disgorgement, statutory and actual monetary damages including

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multiple damages, interest, costs, attorneys’ fees and injunctive relief including a declaratory

judgment and an appropriate court order prohibiting Defendants from further deceptive acts and

practices described in this complaint.

COUNT XVIII

VIOLATION OF THE ILLINOIS CONSUMER FRAUD AND DECEPTIVE BUSINESS PRACTICES ACT, 815 ILCS 505/1 ET SEQ . (ON BEHALF OF PLAINTIFFS CALIHAN, SENSNOVIS AND THE ILLINOIS SUB- CLASS)

481. Plaintiffs Calihan and Sensnovis incorporate by reference all allegations in the

above preceding paragraphs as if set forth fully in this count.

482. Plaintiffs Calihan and Sensnovis assert this count on behalf of themselves and

members of the Illinois Sub-Class.

483. Defendants’ practices, acts, policies and course of conduct, as described above,

constitute unconscionable commercial practices, deception, fraud, false pretense, false promise,

misrepresentations, and/or the knowing concealment, suppression, or omission of material facts

with the intent that consumers, including Plaintiffs Calihan, Sensnovis and members of the

Illinois Sub-Class, rely upon such concealment, suppression, omission in connection with the

sale or advertisement of merchandise of Class Vehicles in violation of the Illinois Consumer

Fraud and Deceptive Business Practice Act (ICFA), 815 ILCS 505/1 et seq. (the “Consumer

Fraud Act”), when purchasing and/or leasing their respective Class Vehicles with the defective

Timing Chain System.

484. Defendants intentionally concealed, suppressed and omitted to Plaintiffs Calihan,

Sensnovis and members of the Illinois Sub-Class at the time of purchase or lease, that the Class

Vehicles contained manufacturing, materials and/or workmanship defects, with the intent that

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Plaintiffs Calihan, Sensnovis and members of the Illinois Sub-Class rely upon such concealment,

suppression, failure to disclose or omission.

485. Defendants knew and intentionally concealed, suppressed and omitted to

consumers who purchased or leased the Class Vehicles, including Plaintiffs Calihan, Sensnovis

and members of the Illinois Sub-Class, the existence of defects and problems in the Timing

Chain System, despite the fact that Defendants possessed prior knowledge of the inherent defects

to the Class Vehicles’ Timing Chain Systems.

486. Defendants actively concealed from Plaintiffs Calihan, Sensnovis and members of

the Illinois Sub-Class the fact that the Timing Chain System was defective, despite the fact that

Defendants learned of such defects in as early as 2008.

487. Defendants represented to Plaintiffs Calihan, Sensnovis and members of the

Illinois Sub-Class that the Class Vehicles were of merchantable quality, in proper working order,

and fit for the ordinary purposes for which passenger vehicles are used when in fact the Class

Vehicles were not of merchantable quality, were not in proper working order, and/or were unfit

for the ordinary purposes for which passenger vehicles are used because of engine materials,

workmanship, design and/or manufacture defects which cause premature Timing Chain System

failure, engine failure, and/or failed performance.

488. Defendants’ acts of commission and omission were done with knowledge and

intent to induce Plaintiffs Calihan, Sensnovis and members of the Illinois Sub-Class to rely upon

Defendants’ deceptive misrepresentations and decide to purchase and/or lease a Class Vehicle.

489. Defendants’ deceptive acts of commission and omission were material and in

regard to facts material to a consumer’s decision to purchase and/or lease a Class Vehicle.

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490. Defendants’ conduct was in the course of conduct involving trade or commerce in

the sale and/or lease of the Class Vehicles and/or related activities.

491. Defendants’ acts of commission and omission caused Plaintiffs Calihan,

Sensnovis and members of the Illinois Sub-Class to suffer ascertainable losses of money and

property in that they were forced to expend sums of money at its dealerships and elsewhere to

repair and/or replace the Timing Chain System and/or Timing Chain System components of their

Class Vehicles, despite the fact that Defendants had prior knowledge of the defects at the time of

placing Class Vehicles into the stream of commerce.

492. In addition to direct monetary losses, Plaintiffs Calihan, Sensnovis and members

of the Illinois Sub-Class suffered an ascertainable loss by paying for the repair out of pocket and

by receiving less value than what was promised to them at the time of purchase and/or lease.

Specifically, Plaintiffs Calihan, Sensnovis and members of the Illinois Sub-Class paid for a

vehicle that is now worth significantly less because of the existence of the defective Timing

Chain System, because of the damage it causes to the Class Vehicles, and because the purchase

price of the Class Vehicles included a warranty program that was supposed to provide free

repairs for all defects in materials or workmanship that occurred during the warranty period, but

instead were deprived of the value of this warranty due to Defendants’ knowing concealment.

493. A causal relationship exists between Defendants’ deceptive and unlawful conduct

and the ascertainable losses suffered by Plaintiffs Calihan, Sensnovis and members of the Illinois

Sub-Class. Consumers, including Plaintiffs Calihan, Sensnovis and members of the Illinois Sub-

Class, relied upon Defendants’ misrepresentations, concealments, and omissions in deciding to

purchase and/or lease their Class Vehicles. Had the defective Timing Chain System in the Class

Vehicles been disclosed, they would not have purchased them, would have paid less for the Class

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Vehicles had they decided to purchase them, or taken affirmative steps to prevent the

catastrophic damage to their Class Vehicles’ Timing Chain System and engine during the

warranty period.

494. Plaintiffs Calihan, Sensnovis and members of the Illinois Sub-Class demand

judgment against Defendants for restitution, disgorgement, statutory and actual monetary

damages, interest, costs, attorneys’ fees and injunctive relief including a declaratory judgment

and an appropriate court order prohibiting Defendants from further deceptive acts and practices

described in this complaint.

COUNT XIX

VIOLATION OF THE INDIANA DECEPTIVE CONSUMER SALES ACT, IND. CODE §§ 24-5-0.5-1 ET SEQ . (ON BEHALF OF PLAINTIFF JOHNSON AND THE INDIANA SUB-CLASS)

495. Plaintiff Johnson incorporates and realleges each preceding paragraph as though

fully set forth herein.

496. Plaintiff Johnson asserts this count on behalf of himself and members of the

Indiana Sub-Class.

497. Plaintiff Johnson and members of the Indiana Sub-Class are persons within the

context of the Indiana Deceptive Consumer Sales Act (hereinafter “IDCSA”), Ind. Code §§ 24-5-

0.5-1 et seq . and specifically § 24-5-0.5-2(a)(2).

498. Plaintiff Johnson and members of the Indiana Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

499. Defendants are persons within the context of the IDCSA, § 24-5-0.5-2(a)(2) and

are engaged in consumer transactions in Indiana within the context of § 24-5-0.5-2(a)(1).

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500. Defendants are engaged in unfair, abusive and deceptive acts and practices within

the context of Ind. Code §§ 24-5-0.5-3(b)(1), (2), (3), (5) and (8) as described in this complaint.

501. Defendants committed deceptive and unconscionable acts in the course of

consumer transactions within the context of IDCSA, § 24-5-0.5-10(b) as described in this

complaint.

502. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff Johnson and members of the Indiana Sub-Class would

rely upon their misrepresentations in connection with the sale and/or advertisement of Class

Vehicles.

503. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Johnson and members of the Indiana Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

504. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Johnson and members of the Indiana Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, engines in Class Vehicles

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contained a known defect as described in this complaint that caused the Timing Chain System to

prematurely fail.

505. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

506. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

507. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

508. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of the IDCSA.

509. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Johnson and members of the Indiana Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Johnson and members of the Indiana Sub-Class

had no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

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the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

510. If Defendants had not concealed class engine defects from Plaintiff Johnson and

members of the Indiana Sub-Class within the express warranty period, Timing Chain Systems

would have been repaired without cost to purchasers as promised under the original warranty.

511. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

512. Defendants violated the IDCSA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

513. Defendants violated the IDCSA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that Class Vehicles contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

514. Defendants further violated the IDCSA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

515. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the IDCSA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

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concerning inter alia, the causes of the failures of Class Vehicles owned by Johnson and

members of the Indiana Sub-Class.

516. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of IDCSA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

517. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Johnson and members of the Indiana Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

518. Plaintiff Johnson and members of the Indiana Sub-Class experienced premature

class engine failure, increased repair and maintenance costs and incurred other substantial

monetary damages and inconvenience.

519. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

520. Plaintiff Johnson and members of the Indiana Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

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COUNT XX

VIOLATION OF THE KANSAS CONSUMER PROTECTION ACT, KAN. STAT. ANN. §§ 50-623 ET SEQ . (ON BEHALF OF PLAINTIFF MODY AND THE KANSAS SUB-CLASS)

521. Plaintiff Mody incorporates and realleges each preceding paragraph as though

fully set forth herein.

522. Plaintiff Mody asserts this count on behalf of himself and members of the Kansas

Sub-Class.

523. Plaintiff Mody and members of the Kansas Sub-Class are consumers and persons

within the context of the Kansas Consumer Protection Act (hereinafter “KCPA”), Kan. Stat.

Ann. §§ 50-623 et seq . and specifically §§ 50-624(b) and (i).

524. Plaintiff Mody and members of the Kansas Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

525. Defendants are persons within the context of the KCPA, Kan. Stat. Ann. §§ 50-

623 et seq . and specifically § 50-624(i).

526. Defendants are engaged in consumer transactions within Kansas with the context

of KCPA, Kan. Stat. Ann., § 50-624(c).

527. Defendants committed deceptive and unfair acts within the context of KCPA,

Kan. Stat. Ann., §§ 50-626(1)(A), (D), (F), (G)(2) and (G)(3) as described in this complaint.

528. Defendants committed unconscionable acts and practices within the context of

KCPA, Kan. Stat. Ann., § 50-627 and §§ 50-675 et seq . as described in this complaint.

529. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

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the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff Mody and members of the Kansas Sub-Class would rely

upon their misrepresentations in connection with the sale and/or advertisement of Class Vehicles.

530. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Mody and members of the Kansas Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

531. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Mody and members of the Kansas Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, engines in Class Vehicles

contained a known defect as described in this complaint that caused the Timing Chain System to

prematurely fail.

532. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

533. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

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534. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

535. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of the KCPA.

536. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Mody and members of the Kansas Sub-Class

were caused to expend sums of money in purchasing and later repairing their Class Vehicles . As

reasonable consumers, Plaintiff Mody and members of the Kansas Sub-Class had no reasonable

way to know that Class Vehicles contained Timing Chain Systems which were defective in

materials, workmanship, design and manufacture. Any reasonable consumer under the

circumstances would have relied on the representations of Defendants who alone possessed the

knowledge as to the quality and characteristics of the Class Vehicles, including the engine and

Timing Chain System durability.

537. If Defendants had not concealed class engine defects from Plaintiff Mody and

members of the Kansas Sub-Class within the express warranty period, Timing Chain Systems

would have been repaired without cost to purchasers as promised under the original warranty.

538. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

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539. Defendants violated the KCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

540. Defendants violated the KCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that Class Vehicles contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

541. Defendants further violated the KCPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

542. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the KCPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of Class Vehicles owned by Mody and members

of the Kansas Sub-Class.

543. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of KCPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

544. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Mody and members of the Kansas Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

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545. Plaintiff Mody and members of the Kansas Sub-Class experienced premature

class engine failure, increased repair and maintenance costs and incurred other substantial

monetary damages and inconvenience.

546. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

547. Plaintiff Mody and members of the Kansas Sub-Class demand judgment against

Defendants for restitution, disgorgement, statutory and actual monetary damages including

multiple damages, interest, costs, attorneys’ fees and injunctive relief including a declaratory

judgment and an appropriate court order prohibiting Defendants from further deceptive acts and

practices described in this complaint.

COUNT XXI

VIOLATION OF THE MARYLAND CONSUMER PROTECTION ACT, MD. CODE ANN., COM. LAW §§ 13-101 ET SEQ . (ON BEHALF OF PLAINTIFF HOSIER AND THE MARYLAND SUB-CLASS)

548. Plaintiff Hosier incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

549. Plaintiff Hosier asserts this count on behalf of himself and members of the

Maryland Sub-Class.

550. Plaintiff Hosier and members of the Maryland Sub-Class are consumers within

the context of the Maryland Consumer Protection Act, Md. Code Ann., Com. Law §§ 13-101, et

seq. (hereinafter “MCPA”) who purchased and/or leased Class Vehicles for personal, family or

household use.

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551. Defendants are persons and merchants within the context of the MCPA.

552. The sale of Class Vehicles in Maryland constitutes trade and commerce of

consumer goods within the context of the MCPA.

553. Defendants violated MCPA § 13-301(1) and (2) by representing Class Vehicles

have characteristics, uses, benefits and/or qualities they do not possess.

554. Defendants violated MCPA § 13-301(2) by representing Class Vehicles are of a

particular standard, quality, or grade, when they are not.

555. Defendants violated MCPA § 13-301(3) by failing to state a material fact that

deceives or tends to deceive.

556. Defendants violated MCPA § 13-301(5)(i) by advertising Class Vehicles without

intent to sell or lease as advertised.

557. Defendants violated MCPA § 13-301(7) by selling Class Vehicles knowing that a

service, replacement or repair was needed.

558. Defendants violated MCPA § 13-301(9)(i) by deception, fraud, false pretense,

false premise, misrepresentation, knowing concealment, suppression, and/or omission of material

facts concerning Class Vehicles with the intent to deceive Plaintiff Hosier and members of the

Maryland Sub-Class.

559. At the time Hosier purchased his certified pre-owned Class Vehicle in August of

2012, Defendants knew that the Timing Chain System in the vehicle was defective and would

prematurely fail because Defendants had previously redesigned the 2.0L TSI tensioner and

timing chain for new vehicle models more than a year and a half earlier in an effort to correct

deficiencies in the system. Defendants failed to inform Hosier of the defective Timing Chain

System in his Class Vehicle at the time of purchase and Hosier had no independent knowledge of

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the defects. Commencing in approximately January 2012, the majority of 2.0L TSI / TFSI

engines incorporated the newly designed tensioner and timing chain described in this complaint.

560. Defendants committed unfair and deceptive acts in the course of trade and

commerce within the context of the MCPA as described in this complaint.

561. Defendants committed unconscionable, deceptive and unfair trade practices,

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the class

engine’s Timing Chain System in connection with the sale and/or advertisement of Class

Vehicles to Plaintiff Hosier and members of the Maryland Sub-Class.

562. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Hosier and members of the Maryland Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

563. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Hosier and members of the Maryland Sub-Class the characteristics of

Class Vehicle engines with respect to materials, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance

including an engine life exceeding 120,000 miles. In fact, Class Vehicles contained a known

defect as described in this complaint that caused class engines to prematurely fail.

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564. Defendants actively suppressed the fact that class engines were prematurely

failing because of materials, workmanship, design and manufacture defects and incorrect

maintenance recommendations and maintenance intervals.

565. Defendants secretly repaired some Class Vehicles in an effort to prevent

dissemination of knowledge concerning Timing Chain System defects.

566. Defendants intended that Hosier and members of the Maryland Sub-Class would,

in the course of their decision to expend monies in purchasing and repairing Class Vehicles,

reasonably rely upon misrepresentations, misleading characterizations and material omissions

concerning the quality of class engines with respect to materials, workmanship, design,

manufacture and information in the owner’s manuals and USA Warranty and Maintenance

pamphlet, as well as any potential defects inherent in the engine components, including the

Timing Chain System.

567. Although Defendants knew defects in class engines and misinformation in the

owner’s manuals were causing premature Timing Chain System and engine failures, Defendants

denied any liability and attempted to shift the responsibility and cost for repairs to individual

vehicle owners.

568. One scheme included blaming Timing Chain System and engine failures on

owners for poor or improper maintenance and other conditions for which Defendants were not

allegedly responsible. In fact, it was the concealed defects in the Timing Chain System that

caused the Class Vehicle failures.

569. Rather than conduct an open and fair inspection and repair procedure for all class

engines, Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the MCPA.

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570. Information regarding a vehicle’s defective Timing Chain System as described in

this complaint is important to consumers in that the defect causes engine failures and necessitates

expensive repairs, and, hence, is likely to affect a consumer’s choice of vehicle to purchase or

lease. Consumers typically will reasonably rely upon the manufacturers and sellers to provide

accurate information as to quality and character of the vehicle they are considering purchasing or

leasing.

571. If Defendants had not concealed class engine defects from Plaintiff Hosier and

members of the Maryland Sub-Class within the express warranty period, class engines would

have been repaired without cost to purchasers as promised under the original warranty.

572. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

573. Defendants violated the MCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that class engines were defectively designed and

manufactured and were accompanied by incorrect maintenance recommendations and

maintenance intervals.

574. Defendants violated the MCPA by failing to inform Class Vehicle owners prior to

purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive engine components such as the Timing Chain System.

575. Defendants further violated the MCPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines, including but not limited

to the Timing Chain System.

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576. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the MCPA on multiple occasions with their

continuous course of conduct, including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of the Timing Chain Systems and/or engines in

Class Vehicles owned by Plaintiff Hosier and members of the Maryland Sub-Class.

577. The secret warranty programs for class engines initiated by Defendants along with

other wrongful conduct of Defendants in violation of the MCPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

578. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Hosier and members of the Maryland Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

579. Plaintiff Hosier and members of the Maryland Sub-Class experienced premature

class Timing Chain System and/or engine failure, diminution of Class Vehicle resale value,

increased repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

580. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable and

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

581. Plaintiff Hosier and members of the Maryland Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages,

interest, costs, attorneys’ fees and injunctive relief including a declaratory judgment and an

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appropriate court order prohibiting Defendants from further deceptive acts and practices

described in this complaint.

COUNT XXII

VIOLATIONS OF THE MICHIGAN CONSUMER PROTECTION ACT, (“MCPA”), MICH. COMP. LAWS § 445.901, ET SEQ. (ON BEHALF OF PLAINTIFF HAGGERTY AND THE MICHIGAN SUB-CLASS)

582. Plaintiff Haggerty incorporates and realleges each preceding paragraph as though

fully set forth herein.

583. Plaintiff Haggerty brings this count on behalf of herself and members of the

Michigan Sub-Class.

584. Plaintiff Haggerty and members of the Michigan Sub-Class are “persons” within

the meaning of the MCPA. See Mich. Comp. Laws § 445.902(1)(d).

585. Plaintiff Haggerty and members of the Michigan Sub-Class are permitted to bring

this action for injunctive relief and actual damages under the MCPA. See Mich. Comp. Laws §

445.911.

586. Defendants are “persons” engaged in “trade or commerce” within the meaning of

the MCPA. See Mich. Comp. Laws § 445.902(1)(d) and (g).

587. The MCPA prohibits “[u]nfair, unconscionable, or deceptive methods, acts, or

practices in the conduct of trade or commerce . . . ” Mich. Comp. Laws § 445.903(1).

Defendants engaged in unfair, unconscionable, or deceptive methods, acts or practices prohibited

by the MCPA, including, inter alia: “[r]epresenting that goods or services have . . . characteristics

. . . that they do not have”; “[r]epresenting that goods or services are of a particular standard,

quality, or grade . . . if they are of another”; “[f]ailing to reveal a material fact, the omission of

which tends to mislead or deceive the consumer, and which fact could not reasonably be known

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by the consumer”; “[m]aking a representation of fact or statement of fact material to the

transaction such that a person reasonably believes the represented or suggested state of affairs to

be other than it actually is”; and “[f]ailing to reveal facts that are material to the transaction in

light of representations of fact made in a positive manner.” Mich. Comp. Laws § 445.903(1).

588. Defendants violated the MCPA by employing unfair, unconscionable, or

deceptive acts or practices, and/or by engaging in fraud, misrepresentations, concealment,

suppression and/or omissions of material facts with the intent that others rely upon such

concealment, suppression and/or omissions, in connection with the sale and/or lease of Class

Vehicles.

589. Defendants knowingly concealed, suppressed and/or omitted material facts

regarding the defective Timing Chain System and its corresponding safety risk, and

misrepresented the standard, quality or grade of the Class Vehicles, which directly caused harm

to Plaintiff Haggerty and members of the Michigan Sub-Class. Plaintiff Haggerty and members

of the Michigan Sub-Class could not reasonably have known about the Timing Chain System

defect and its corresponding safety risk as the information was in the superior and exclusive

control of Defendants.

590. Defendants intentionally and knowingly misrepresented and concealed,

suppressed and/or omitted facts regarding the Timing Chain System defect with the intent to

mislead Plaintiff Haggerty and members of the Michigan Sub-Class. Defendants knew, or

should have known, that the Timing Chain System defect was a latent defect and that the Timing

Chain System was likely to fail outside of the periods of the manufacturer’s warranties.

Defendants also knew, or should have known, that the Timing Chain System defect in the Class

Vehicles could cause catastrophic engine failure leading to a loss of engine power while the

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vehicle was operating. Further, Defendants knew, or should have known, that such loss of power

could cause the Class Vehicles to become involved in rear-end collisions or other accidents,

putting vehicle operators, passengers, and other motorists at risk for injury.

591. Defendants owed a duty to disclose the Timing Chain System defect and its

corresponding safety risk to Plaintiff Haggerty and members of the Michigan Sub-Class because

they possessed superior and exclusive knowledge regarding the defect and the risks associated

with the Timing Chain System. Rather than disclose the defect, Defendants engaged in unfair,

unconscionable and deceptive trade practices in order to sell additional Class Vehicles and

wrongfully transfer the cost of repair or replacement of the Timing Chain System to Plaintiff

Haggerty and members of the Michigan Sub-Class.

592. Defendants’ unfair, unconscionable and deceptive acts, affirmative

misrepresentations and/or material omissions regarding the Timing Chain System defect were

intended to mislead consumers and misled Plaintiff Haggerty and members of the Michigan Sub-

Class.

593. At all relevant times, Defendants’ unfair, unconscionable and deceptive acts,

affirmative misrepresentations and/or omissions regarding the Timing Chain System defect and

its corresponding safety risk were material to Plaintiff Haggerty and members of the Michigan

Sub-Class. When Plaintiff Haggerty and members of the Michigan Sub-Class purchased or

leased their Class Vehicles, they reasonably relied on the reasonable expectation that the Class

Vehicles’ Timing Chain Systems were free from latent defects and would last beyond the periods

of the manufacturer’s warranties. Had Defendants disclosed that the Timing Chain System was

prone to premature failure and/or an unavoidable safety risk, Plaintiff Haggerty and members of

the Michigan Sub-Class would not have purchased or leased the Class Vehicles, or would have

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paid less for their vehicles. Further, had Defendants disclosed that the Timing Chain Systems in

the Class Vehicles would not last beyond the warranty periods without need for repair or

replacement, Plaintiff Haggerty and members of the Michigan Sub-Class would have demanded

repair or replacement during the warranty periods at no cost—as provided for in Defendants’

warranties.

594. Defendants had a continuous duty to Plaintiff Haggerty and members of the

Michigan Sub-Class to refrain from unfair and deceptive practices under the MCPA and to

disclose the Timing Chain System defect. Defendants’ unfair, unconscionable and deceptive

acts, affirmative misrepresentations and/or material omissions regarding the Timing Chain

System defect and corresponding safety risk are substantially injurious to consumers. As a result

of Defendants knowing, intentional concealment, suppression and/or omission of the Timing

Chain System defect in violation of the MCPA, Plaintiff Haggerty and members of the Michigan

Sub-Class have suffered harm and/or continue to suffer harm by the threat of sudden and

unexpected failure of the Timing Chain System and/or actual damages in the amount of the cost

to replace the Timing Chain System, essential engine parts or the entire engine, and damages to

be determined at trial. Owners and lessees of Class Vehicles also suffered an ascertainable loss

in the form of the diminished value of their vehicles as a result of Defendants’ unfair,

unconscionable and deceptive acts and practices in the course of their business.

595. Defendants’ unfair, unconscionable and deceptive acts and practices occurred in

the conduct of trade or commerce.

596. Defendants have knowingly and willfully engaged in the unfair, unconscionable

and deceptive acts and practices alleged herein. Further, Defendants unconscionably marketed

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the Class Vehicles to uninformed consumers in order to maximize profits by selling additional

Class Vehicles containing the undisclosed latent defect and corresponding safety risk.

597. Defendants’ unfair, unconscionable and deceptive acts and practices affect the

public interest and present a continuing safety risk to Plaintiff Haggerty and members of the

Michigan Sub-Class as well as the public.

598. As a direct and proximate result of Defendants’ violations of the MCPA, Plaintiff

Haggerty and members of the Michigan Sub-Class have suffered actual damages and/or injury in

fact.

599. As a result of Defendants’ unlawful conduct, Plaintiff Haggerty and members of

the Michigan Sub-Class are entitled to actual damages, costs of litigation, attorneys’ fees,

injunctive and other equitable relief. See Mich. Comp. Laws § 445.911.

COUNT XXIII

VIOLATION OF THE MINNESOTA PREVENTION OF CONSUMER FRAUD ACT, MINN. STAT., §§ 325F.68 ET SEQ. (ON BEHALF OF PLAINTIFF ZHAO AND THE MINNESOTA SUB-CLASS)

600. Plaintiff Zhao incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

601. Plaintiff Zhao asserts this count on behalf of himself and members of the

Minnesota Sub-Class.

602. Plaintiff Zhao and members of the Minnesota Sub-Class are persons within the

context of the Minnesota Prevention of Consumer Fraud Act (hereinafter “MPCFA”), § 325F.68

subd. 3.

603. Defendants are persons within the context of the MPCFA, § 325F.68 subd. 3.

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604. Defendants are engaged in deceptive trade practices within the context of the

MPCFA, § 325F.69 subd. 1.

605. Plaintiff Zhao and members of the Minnesota Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

606. Defendants committed unconscionable, deceptive and unfair trade practices in the

course of trade and commerce within the context of the MPCFA as described in this complaint.

607. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Class

Vehicles’ Timing Chain System with intent that Plaintiff Zhao and members of the Minnesota

Sub-Class would rely upon their misrepresentations in connection with the sale and/or

advertisement of Class Vehicles.

608. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Zhao and members of the Minnesota Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

609. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Zhao and members of the Minnesota Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

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also included an engine life exceeding 120,000 miles. In fact, class engines contained a known

defect as described in this complaint that caused class engines to prematurely fail.

610. Defendants actively suppressed the fact that Class Vehicles were prematurely

failing because of materials, workmanship, design and manufacture defects, as well as incorrect

maintenance recommendations and maintenance intervals.

611. Defendants secretly repaired some Timing Chain Systems to prevent

dissemination of knowledge concerning class engine defects.

612. Although Defendants knew defects in class engines and misinformation in the

owner’s manuals were causing premature Timing Chain System and/or engine failures,

Defendants denied any liability and attempted to shift the responsibility and cost for repairs to

individual vehicle owners.

613. One scheme included blaming Class Vehicle failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

614. Rather than conduct an open and fair inspection and repair procedure for all class

engines, Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the MPCFA.

615. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Zhao and members of the Minnesota Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Zhao and members of the Minnesota Sub-Class

had no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

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the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

616. If Defendants had not concealed class engine defects from Plaintiff Zhao and

members of the Minnesota Sub-Class within the express warranty period, class engines would

have been repaired without cost to purchasers as promised under the original warranty.

617. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

618. Defendants violated the MPCFA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

619. Defendants violated the MPCFA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

620. Defendants further violated the MPCFA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

621. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the MPCFA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

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concerning inter alia, the causes of the failures of class engines owned by Zhao and members of

the Minnesota Sub-Class.

622. The secret warranty programs for class engines initiated by Defendants and other

wrongful conduct of Defendants in violation of MPCFA occurred within the limitations period

set out in the statute and/or is tolled by Defendants’ conduct.

623. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Zhao and members of the Minnesota Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

624. Plaintiff Zhao and members of the Minnesota Sub-Class experienced premature

Timing Chain System and/or engine failure, diminution of Class Vehicle resale value, increased

repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

625. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

626. Plaintiff Zhao and members of the Minnesota Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

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COUNT XXIV

VIOLATION OF THE MINNESOTA UNIFORM DECEPTIVE TRADE PRACTICES ACT, MINN. STAT., §§ 325D.43 ET SEQ. (ON BEHALF OF PLAINTIFF ZHAO AND THE MINNESOTA SUBCLASS)

627. Plaintiff Zhao incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

628. Plaintiff Zhao asserts this count on behalf of himself and members of the

Minnesota Sub-Class.

629. Plaintiff Zhao and members of the Minnesota Sub-Class are persons within the

context of the Minnesota Uniform Deceptive Trade Practices Act (hereinafter “MUDTPA”), §§

325D.43, et seq.

630. Defendants are persons within the context of the MUDTPA, §§ 325D.43, et seq.

631. Defendants are engaged in deceptive trade practices within the context of the

MUDTPA, § 325D.44(5), (7) and (9).

632. Plaintiff Zhao and members of the Minnesota Sub-Class purchased and/or leased

Class Vehicles for personal, family or household use.

633. Defendants committed unconscionable, deceptive and unfair trade practices in the

course of trade and commerce within the context of the MUDTPA as described in this complaint.

634. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the class

engine’s Timing Chain System with intent that Plaintiff Zhao and members of the Minnesota

Sub-Class would rely upon their misrepresentations in connection with the sale and/or

advertisement of Class Vehicles.

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635. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Zhao and members of the Minnesota Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the timing chain system.

636. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Zhao and members of the Minnesota Sub-Class the characteristics of

Class Vehicle engines with respect to material, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles, including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance, and

also included an engine life exceeding 120,000 miles. In fact, class engines contained a known

defect as described in this complaint that caused class engines to prematurely fail.

637. Defendants actively suppressed the fact that class engines were prematurely

failing because of materials, workmanship, design and manufacture defects, as well as incorrect

maintenance recommendations and maintenance intervals.

638. Defendants secretly repaired some class engines to prevent dissemination of

knowledge concerning class engine defects.

639. Although Defendants knew defects in class engines and misinformation in the

owner’s manuals were causing premature class engine failures, Defendants denied any liability

and attempted to shift the responsibility and cost for repairs to individual vehicle owners.

640. One scheme included blaming class engine failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

In fact, Plaintiff Zhao and members of the Minnesota Sub-Class complied with use and

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maintenance recommendations for their respective class engines, and the class engine failures

were on account of the Class Vehicles’ defective Timing Chain System.

641. Rather than conduct an open and fair inspection and repair procedure for all class

engines, Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the MUDTPA.

642. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Zhao and members of the Minnesota Sub-

Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Zhao and members of the Minnesota Sub-Class

had no reasonable way to know that Class Vehicles contained Timing Chain Systems which were

defective in materials, workmanship, design and manufacture. Any reasonable consumer under

the circumstances would have relied on the representations of Defendants who alone possessed

the knowledge as to the quality and characteristics of the Class Vehicles, including the engine

and Timing Chain System durability.

643. If Defendants had not concealed class engine defects from Plaintiff Zhao and

members of the Minnesota Sub-Class within the express warranty period, class engines would

have been repaired without cost to purchasers as promised under the original warranty.

644. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

645. Defendants violated the MUDTPA by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that class engines were defective in

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materials, workmanship, design and manufacture and were accompanied by incorrect

maintenance recommendations and maintenance intervals.

646. Defendants violated the MUDTPA by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that class engines contained defects and

would require regular replacement of expensive internal engine components such as the timing

chain system.

647. Defendants further violated the MUDTPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

648. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the MUDTPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of class engines owned by Plaintiff Zhao and

members of the Minnesota Sub-Class.

649. The secret warranty programs for class engines initiated by Defendants and other

wrongful conduct of Defendants in violation of MUDTPA occurred within the limitations period

set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

650. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Zhao and members of the Minnesota Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

651. Plaintiff Zhao and members of the Minnesota Sub-Class experienced premature

Timing Chain System and/or engine failure, diminution of Class Vehicle resale value, increased

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repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

652. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

653. Plaintiff Zhao and members of the Minnesota Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

COUNT XXV

VIOLATION OF MINNESOTA’S PRIVATE ATTORNEY GENERAL STATUTE, MINN. STAT. § 8.31 (ON BEHALF OF PLAINTIFF ZHAO AND THE MINNESOTA SUBCLASS)

654. Plaintiff Zhao incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

655. Plaintiff Zhao asserts this count on behalf of himself and members of the

Minnesota Sub-Class.

656. Plaintiff Zhao and members of the Minnesota Sub-Class are consumers.

657. Plaintiff Zhao and members of the Minnesota Sub-Class were injured by

Defendants’ sale of Class Vehicles.

658. Plaintiff Zhao and members of the Minnesota Sub-Class have been injured by

Defendants’ violation of the Minnesota Consumer Fraud Act as described in this complaint.

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659. Plaintiff Zhao and members of the Minnesota Sub-Class have suffered damages

with a causal nexus to Defendants’ misrepresentations and deceptive practices described in this

complaint.

660. This action will benefit the public interest and therefore meets the requirements of

Minnesota’s Private Attorney General Statute.

COUNT XXVI

VIOLATION OF THE NEVADA DECEPTIVE TRADE PRACTICES ACT, NRS 41.600 AND 598.0903 ET SEQ . (ON BEHALF OF PLAINTIFF ZIELEZINSKI AND THE NEVADA SUB-CLASS)

661. Plaintiff Zielezinski incorporates by reference all allegations in the above

preceding paragraphs as if set forth fully in this count.

662. Plaintiff Zielezinski asserts this count on behalf of himself and members of the

Nevada Sub-Class.

663. Defendants’ aforementioned acts constitute Deceptive Trade Practices under

Nevada Revised Statutes (“NRS”) §§ 41.600 and 598.0915.

664. Pursuant to the Deceptive Trade Practices Act (“DTPA”) the following acts or

practices are prohibited: (2) knowingly making a false representation as to the source,

sponsorship, approval or certification of goods or services; (3) knowingly making a false

representation as to the affiliation, connection, or association with, of certification by, another;

(5) representing that goods or services have sponsorship, approval, characteristics, ingredients,

uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval,

status, affiliation, or connection which he or she does not have; (7) representing that goods or

services are of a particular standard, quality, grade, or that goods are of a particular style or

model, if they are of another; (9) advertising goods or services with the intent not to sell them as

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advertised; (15) knowingly making any other false representation in a transaction. NRS §

598.0915.

665. By engaging in the aforementioned acts, Defendants knew or should have known

that their conduct was unfair and deceptive.

666. Defendants are therefore in violation of NRS §§ 41.600 and 598.0903 et seq .

667. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

668. Plaintiff Zielezinski and members of the Nevada Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

COUNT XXVII

VIOLATION OF THE NEW HAMPSHIRE CONSUMER PROTECTION ACT, N.H. REV. STAT. ANN. §§ 358-A:1 ET SEQ. (ON BEHALF OF PLAINTIFF NOYES AND THE NEW HAMPSHIRE SUB-CLASS)

669. Plaintiff Noyes incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

670. Plaintiff Noyes asserts this count on behalf of himself and members of the New

Hampshire Sub-Class.

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671. Plaintiff Noyes and members of the New Hampshire Sub-Class are persons within

the context of the New Hampshire Consumer Protection Act, §§ 358-A:1 et seq . (hereinafter

“NHCPA”), specifically § 358-A:1I.

672. Defendants are persons within the context of the NHCPA, § 358-A:1I.

673. Defendants are engaged in trade and commerce within the context of the NHCPA,

§ 358-A:1II.

674. Plaintiff Noyes and members of the New Hampshire Sub-Class purchased and/or

leased Class Vehicles for personal, family or household use.

675. Defendants committed unfair and deceptive acts in the course of trade and

commerce as described in this complaint in violation of NHCPA § 358-A:2V, VII and IX, inter

alia .

676. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Class

Vehicle’s Timing Chain System with intent that Plaintiff Noyes and members of the New

Hampshire Sub-Class would rely upon their misrepresentations in connection with the sale

and/or advertisement of Class Vehicles.

677. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Noyes and members of the New Hampshire Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

678. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Noyes and members of the New Hampshire Sub-Class the

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characteristics of Class Vehicle engines with respect to material, manufacture, durability, design,

longevity, maintenance and operating costs. Defendants extensively advertised that Class

Vehicles were superior in construction and extolled the quality and virtues of Class Vehicles,

including superior materials, workmanship, design, manufacture, safety, durability, reliability

and performance, and also included an engine life exceeding 120,000 miles. In fact, class

engines contained a known defect as described in this complaint that caused class engines to

prematurely fail.

679. Defendants actively suppressed the fact that class engines were prematurely

failing because of materials, workmanship, design and manufacture defects, as well as incorrect

maintenance recommendations and maintenance intervals.

680. Defendants secretly repaired some class engines to prevent dissemination of

knowledge concerning class engine defects.

681. Although Defendants knew defects in class engines and misinformation in the

owner’s manuals were causing premature class engine failures, Defendants denied any liability

and attempted to shift the responsibility and cost for repairs to individual vehicle owners.

682. One scheme included blaming class engine failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

Rather than conduct an open and fair inspection and repair procedure for all class engines,

Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the NHCPA.

683. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Noyes and members of the New Hampshire

Sub-Class were caused to expend sums of money in purchasing and later repairing their Class

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Vehicles . As reasonable consumers, Plaintiff Noyes and members of the New-Hampshire Sub-

Class had no reasonable way to know that Class Vehicles contained Timing Chain Systems

which were defective in materials, workmanship, design and manufacture. Any reasonable

consumer under the circumstances would have relied on the representations of Defendants who

alone possessed the knowledge as to the quality and characteristics of the Class Vehicles,

including the engine and Timing Chain System durability.

684. If Defendants had not concealed class engine defects from Plaintiff Noyes and

members of the New Hampshire Sub-Class within the express warranty period, class engines

would have been repaired without cost to purchasers as promised under the original warranty.

685. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

686. Defendants violated the NHCPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

687. Defendants violated the NHCPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

688. Defendants further violated the NHCPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

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689. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the NHCPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of class engines owned by Noyes and members

of the New Hampshire Sub-Class.

690. The secret warranty programs for class engines initiated by Defendants and other

wrongful conduct of Defendants in violation of NHCPA occurred within the limitations period

set out in the statute and/or is tolled by Defendants’ conduct.

691. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Noyes and members of the New Hampshire Sub-Class purchased or leased

Class Vehicles and sustained an ascertainable loss and financial harm.

692. Plaintiff Noyes and members of the New Hampshire Sub-Class experienced

premature Timing Chain System and/or engine failure, diminution of Class Vehicle resale value,

increased repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

693. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

694. Plaintiff Noyes and members of the New Hampshire Sub-Class demand judgment

against Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

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declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

COUNT XXVIII

VIOLATIONS OF THE NEW YORK CONSUMER PROTECTION ACT, (“NYCPA”), N.Y. GEN. BUS. LAW § 349 (ON BEHALF OF PLAINTIFFS MELMAN, DEIB, PANEPINTO AND THE NEW YORK SUB-CLASS)

695. Plaintiffs Melman, Deib and Panepinto incorporate and reallege each preceding

paragraph as though fully set forth herein.

696. Plaintiffs Melman, Deib and Panepinto bring this count on behalf of themselves

and members of the New York Sub-Class.

697. Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class

purchased or leased their Class Vehicles for personal or household use.

698. Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class

are permitted to bring this action for injunctive relief and actual damages under the NYCPA. See

N.Y. Gen. Bus. Law § 349(h).

699. Defendants are engaged in the conduct of “business, trade or commerce” within

the meaning of the NYCPA. See N.Y. Gen. Bus. Law § 349(a).

700. The NYCPA prohibits “deceptive acts or practices in the conduct of any business,

trade or commerce or in the furnishing of any service.” See N.Y. Gen. Bus. Law § 349(a).

701. Defendants violated the NYCPA by engaging in deceptive acts or practices

directed to consumers in connection with the sale and/or lease of Class Vehicles.

702. Defendants knowingly concealed, suppressed and/or omitted material facts

regarding the defective Timing Chain System and its corresponding safety risk, and

misrepresented the standard, quality or grade of the Class Vehicles, which directly caused harm

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to Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class. Plaintiffs

Melman, Deib and Panepinto and members of the New York Sub-Class could not reasonably

have known about the Timing Chain System defect and its corresponding safety risk as the

information was in the superior and exclusive control of Defendants.

703. Defendants intentionally and knowingly misrepresented and concealed,

suppressed and/or omitted facts regarding the Timing Chain System defect with the intent to

mislead Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class.

Defendants knew, or should have known, that the Timing Chain System defect was a latent

defect and that the Timing Chain System was likely to fail outside of the periods of the

manufacturer’s warranties. Defendants also knew, or should have known, that the Timing Chain

System defect in the Class Vehicles could cause catastrophic engine failure leading to a loss of

engine power while the vehicle was operating. Further, Defendants knew, or should have

known, that such loss of power could cause the Class Vehicles to become involved in rear-end

collisions or other accidents, putting vehicle operators, passengers, and other motorists at risk for

injury.

704. Defendants owed a duty to disclose the Timing Chain System defect and its

corresponding safety risk to Plaintiffs Melman, Deib and Panepinto and members of the New

York Sub-Class because they possessed superior and exclusive knowledge regarding the defect

and the risks associated with the Timing Chain System’s failure. Rather than disclose the defect,

Defendants engaged in deceptive acts or practices in order to sell additional Class Vehicles and

wrongfully transfer the cost of repair or replacement of the Timing Chain System to Plaintiffs

Melman, Deib and Panepinto and members of the New York Sub-Class.

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705. Defendants’ deceptive acts or practices, affirmative misrepresentations and/or

material omissions regarding the Timing Chain System defect were intended to mislead

consumers, were misleading to reasonable consumers, and misled Plaintiffs Melman, Deib and

Panepinto and members of the New York Sub-Class.

706. At all relevant times, Defendants’ deceptive acts or practices, affirmative

misrepresentations and/or omissions regarding the Timing Chain System defect and its

corresponding safety risk were material to Plaintiffs Melman, Deib and Panepinto and members

of the New York Sub-Class. When Plaintiffs Melman, Deib and Panepinto and members of the

New York Sub-Class purchased or leased their Class Vehicles, they reasonably relied on the

reasonable expectation that the Class Vehicles’ Timing Chain Systems were free from latent

defects and would last beyond the periods of the manufacturer’s warranties. Had Defendants

disclosed that the Timing Chain System was prone to premature failure and/or an unavoidable

safety risk, Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class

would not have purchased or leased the Class Vehicles, or would have paid less for their

vehicles. Further, had Defendants disclosed that the Timing Chain Systems in the Class Vehicles

would not last beyond the warranty periods without need for repair or replacement, Plaintiffs

Melman, Deib and Panepinto and members of the New York Sub-Class would have demanded

repair or replacement during the warranty periods at no cost—as provided for in Defendants’

warranties.

707. Defendants had a continuous duty to Plaintiffs Melman, Deib and Panepinto and

members of the New York Sub-Class to refrain from unfair and deceptive practices under the

NYCPA and to disclose the Timing Chain System defect. Defendants’ deceptive acts or

practices, affirmative misrepresentations and/or material omissions regarding the Timing Chain

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System defect and corresponding safety risk are substantially injurious to consumers. As a result

of Defendants’ knowing, intentional concealment, suppression and/or omission of the Timing

Chain System defect in violation of the NYCPA, Plaintiffs Melman, Deib and Panepinto and

members of the New York Sub-Class have suffered harm and/or continue to suffer harm by the

threat of sudden and unexpected failure of the Timing Chain System and/or actual damages in

the amount of the cost to replace the Timing Chain System, essential engine parts or the entire

engine, and damages to be determined at trial. Owners and lessees of Class Vehicles also

suffered an ascertainable loss in the form of the diminished value of their vehicles as a result of

Defendants’ deceptive acts or practices in the course of their business.

708. Defendants’ deceptive acts or practices occurred in the conduct of business, trade

or commerce.

709. Defendants have knowingly and willfully engaged in the deceptive acts or

practices alleged herein. Further, Defendants unconscionably marketed the Class Vehicles to

uninformed consumers in order to maximize profits by selling additional Class Vehicles

containing the undisclosed latent defect and corresponding safety risk.

710. Defendants’ deceptive acts or practices affect the public interest and present a

continuing safety risk to Plaintiffs Melman, Deib and Panepinto and members of the New York

Sub-Class as well as the public.

711. As a direct and proximate result of Defendants’ violations of the NYCPA,

Plaintiffs Melman, Deib and Panepinto and members of the New York Sub-Class have suffered

actual damages and/or injury in fact.

712. As a result of Defendants’ unlawful conduct, Plaintiffs Melman, Deib and

Panepinto and members of the New York Sub-Class are entitled to actual damages, treble

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damages, costs of litigation, attorneys’ fees, injunctive and other equitable relief. See N.Y. Gen.

Bus. Law § 349(h).

COUNT XXIX

VIOLATION OF THE NORTH CAROLINA UNFAIR AND DECEPTIVE TRADE PRACTICES ACT, N.C. GEN. LAWS §§ 75-1.1 ET SEQ. (ON BEHALF OF PLAINTIFF OLES AND THE NORTH CAROLINA SUB-CLASS)

713. Plaintiff Oles incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

714. Plaintiff Oles asserts this count on behalf of herself and members of the North

Carolina Sub-Class.

715. Defendants are engaged in designing, manufacturing, marketing, supplying and

selling vehicles, business and/or commerce within the context of the North Carolina Unfair and

Deceptive Trade Practices Act, N.C. Gen. Laws §§ 75-1.1, et seq. (hereinafter “NCUDTPA”),

and committed unfair and deceptive acts and practices in the course of their business within the

context of the NCUDTPA as described in this complaint.

716. Defendants committed unconscionable, deceptive and unfair trade practices,

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts. The misrepresentations

and material omissions concerned the class engine’s Timing Chain System and were made by

defendants with intent that Plaintiff Oles and members of the North Carolina Sub-Class would

rely upon the deception, fraud, false pretense, false promise, misrepresentation and the knowing

concealment, suppression and omission of material facts in connection with the sale and/or

advertisement of Class Vehicles.

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717. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Oles and members of the North Carolina Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines including but not limited to

the Timing Chain System.

718. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Oles and members of the North Carolina Sub-Class the quality and

characteristics of Class Vehicle engines with respect to materials, manufacture, durability,

design, longevity, maintenance and operating costs. Defendants extensively advertised that

Class Vehicles were superior in construction and extolled the quality and virtues of Class

Vehicles, including superior materials, design, manufacture, safety, durability, reliability and

performance, including an engine life exceeding 120,000 miles. In fact, class engines contained

a known defect as described in this complaint that caused class engines to prematurely fail.

719. Defendants actively suppressed the fact that class engines were prematurely

failing because of materials, workmanship, design and manufacture defects and incorrect

maintenance recommendations and maintenance intervals.

720. Plaintiff Oles and members of the North Carolina Sub-Class observed, heard, saw,

read or otherwise received Defendants’ misrepresentations and were subjected to material

omissions by Defendants regarding the quality and characteristics of Class Vehicle engines,

required maintenance and/or maintenance intervals of Class Vehicle engines and/or premature

engine failings, and relied upon the misrepresentations and/or omissions in choosing to purchase

their Class Vehicles over other market vehicles.

721. Defendants secretly repaired some Timing Chain Systems to prevent

dissemination of knowledge concerning class engine defects.

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722. Defendants intended or should have known that Oles and members of the North

Carolina Sub-Class would rely upon their misrepresentations regarding class engines with

respect to materials, workmanship, design, manufacture and information in the owner’s manuals

and USA Warranty and Maintenance pamphlet.

723. Plaintiff Oles and members of the North Carolina Sub-Class complied with the

warranty requirements for their respective class engines.

724. Although Defendants were aware that defects in class engines and misinformation

and poor guidance in the owner’s manuals were causing premature class engine failures,

Defendants denied any liability and attempted to shift the responsibility and cost of repairs to

individual vehicle owners.

725. One scheme perpetrated by Defendants included blaming class engine failures on

owners for poor or improper maintenance and other conditions for which Defendants were not

allegedly responsible. In fact, the respective owners had properly maintained their Class

Vehicles in accordance with the Maintenance manual, and the engine failures were due to the

inherent defects in the materials of the Timing Chain System.

726. Rather than conduct an open and fair inspection into the Class Vehicles’ engine

defect and failing, and then devise and provide a repair procedure for all class engines,

Defendants employed unfair and deceptive trade practices including advising members of the

North Carolina Sub-Class that their engine failures were on account of other reasons in order to

deceive members of the North Carolina Sub-Class as to the basis of their engine failures and

deny them repairs or repair reimbursements covered under the warranty in violation of

NCUDTPA.

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727. Oles and members of the North Carolina Sub-Class observed, heard, saw, read or

otherwise received Defendants’ misrepresentations and were subjected to material omissions by

Defendants regarding their vehicles’ premature engine failures, denial of liability and shifting of

responsibility for the cost of repairs to individual vehicle owners and relied upon the

misrepresentations and/or omissions in individually incurring the costs of their vehicle’s repair.

If Defendants had not concealed class engine defects from Plaintiff Oles and members of the

North Carolina Sub-Class within the express warranty period, class engines would have repaired

by Defendants without cost to purchasers as so required under the original warranty.

728. Oles and members of the North Carolina Sub-Class incorporated Defendants’

misrepresentations into their respective decision-making process to purchase Class Vehicles and

pay for their repairs. If it were not for the misrepresentations, Oles and members of the North

Carolina Sub-Class would likely have avoided the injury altogether by initially purchasing or

leasing other vehicles and later by holding Defendants responsible for their repairs under the

outstanding warranty. Oles’ and members of the North Carolina Sub-Class’ reliance upon

Defendants’ misrepresentations were reasonable as they, like typical consumers in such a

commercial context of a vehicle purchase, could not have discovered the truth of the Class

Vehicles’ quality and/or defects through reasonable diligence and investigation.

729. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

730. Defendants violated NCUDTPA by failing to inform Class Vehicle owners prior

to purchase and/or after the time of their purchase during the warranty period that class engines

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contained were defective in materials, workmanship, design and/or manufacture, and were

accompanied by incorrect maintenance recommendations and suggested maintenance intervals.

731. Defendants violated NCUDTPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

732. Defendants further violated NCUDTPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines, including but not limited

to the Timing Chain System.

733. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated NCUDTPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of class engines owned by Oles and members of

the North Carolina Sub-Class.

734. The secret warranty programs for class engines initiated by Defendants and other

wrongful conduct of Defendants in violation of NCUDTPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

735. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Oles and members of the North Carolina Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

736. Plaintiff Oles and members of the North Carolina Sub-Class experienced

premature Timing Chain System and/or engine failure, diminution of Class Vehicle resale value,

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increased repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

737. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

738. Plaintiff Oles and members of the North Carolina Sub-Class demand judgment

against defendants including statutory and actual monetary damages, multiple damages, interest,

costs, attorneys' fees and injunctive relief.

COUNT XXX

VIOLATION OF THE OHIO CONSUMER SALES PRACTICES ACT, OHIO REV. CODE ANN §§ 1345.01 ET SEQ . (ON BEHALF OF PLAINTIFF SCOTT AND THE OHIO SUB-CLASS)

739. Plaintiff Scott incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

740. Plaintiff Scott asserts this count on behalf of himself and members of the Ohio

Sub-Class.

741. Plaintiff Scott and members of the Ohio Sub-Class are “consumers” within

context of the Ohio Consumer Sales Practices Act §§ 1345.01 to 1345.13 (hereinafter “OCSPA”)

in having purchased or leased Class Vehicles.

742. Defendants are persons and suppliers within the context of the OCSPA at §

1345.01(C).

743. The sale of Class Vehicles in Ohio constitutes a consumer transaction within the

context of the OCSPA at § 1345.01(A).

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744. Defendants committed unfair and deceptive acts in the course of trade and

commerce within the context of the OCSPA as described in this complaint in violation of

OCSPA § 1345.02(A)-(B).

745. Defendants committed unconscionable commercial practices, including but not

limited to deception, fraud, false pretense, false promise, misrepresentation and the knowing

concealment, suppression and omission of material facts concerning the class engine’s Timing

Chain System with intent that Plaintiff Scott and other members of the Ohio Sub-Class would

rely upon such concealment, suppression and/or omission in connection with the sale and/or

advertisement of Class Vehicles as described in this complaint in violation of OCSPA §

1345.03(A)-(B).

746. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Scott and members of the Ohio Sub-Class the required maintenance

and/or maintenance intervals of Class Vehicles including but not limited to regular replacement

of expensive components including but not limited to the Timing Chain System as described in

this complaint in violation of OCSPA § 1345.03(A)-(B). Defendants extensively advertised that

Class Vehicles were superior in construction and extolled the quality and virtues of Class

Vehicles including superior design and manufacture, safety, durability, reliability and

performance including an engine life exceeding 120,000 miles. In fact, class engines contained a

known defect as described in this complaint that caused class engines to prematurely fail.

747. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Scott and members of the Ohio Sub-Class the characteristics of Class

Vehicle engines with respect to materials, workmanship, manufacture, durability, design,

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longevity, maintenance and operating costs as described in this complaint in violation of OCSPA

§ 1345.03(A)-(B).

748. Defendants actively suppressed the fact that class engines were failing because of

materials, workmanship, design and manufacture defects and incorrect maintenance

recommendations and maintenance intervals.

749. Plaintiff Scott and members of the Ohio Sub-Class observed, heard, saw, read or

otherwise received Defendants’ misrepresentations and were subjected to material omissions by

Defendants regarding the quality and characteristics of Class Vehicle engines, required

maintenance and/or maintenance intervals of Class Vehicle engines and/or premature engine

failings and relied upon the misrepresentations and/or omissions in choosing to purchase their

Class Vehicles over other market vehicles.

750. Plaintiff Scott and members of the Ohio Sub-Class observed, heard, saw, read or

otherwise received Defendants’ misrepresentations and were subjected to material omissions by

Defendants regarding their vehicles’ premature engine failings, denial of liability and shifting of

responsibility for the cost of repairs to individual vehicle owners and relied upon the

misrepresentations and/or omissions in individually incurring the costs of their vehicle’s repair.

If Defendants had not concealed class engine defects from Plaintiff Scott and members of the

Ohio Sub-Class within the express warranty period, class engines would have been repaired by

Defendants without cost to purchasers as so required under the original warranty. Defendants

secretly repaired some Class Vehicles to prevent dissemination of knowledge concerning vehicle

defects.

751. Defendants intended or should have known that Plaintiff Scott and members of

the Ohio Sub-Class would rely upon misrepresented characteristics of Class Vehicles with

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respect to design, materials, workmanship, manufacture and information in the owner’s manual

and the USA Warranty and Maintenance pamphlet.

752. Although Defendants were aware that defects in class engines and misinformation

and improper guidance in the owner’s manual and the USA Warranty and Maintenance pamphlet

were causing premature class engine failures, Defendants denied any liability and attempted to

shift the responsibility and cost for repairs to individual vehicle owners.

753. One scheme Defendants employed entailed blaming class engine failures on

individual owners for poor or improper maintenance or other conditions for which Defendants

were not responsible. In fact, their vehicles were properly maintained and the engine failures

were due to the inherently defective Timing Chain Systems.

754. Rather than conduct an open and fair inspection of the engine failings and make

available a proper repair procedure for all Class Vehicles, Defendants employed unfair and

deceptive trade practices to deny repairs or repair reimbursements in violation of the OCSPA.

755. If Defendants had not concealed Class Vehicle defects from Plaintiff Scott and

members of the Ohio Sub-Class within the express warranty period, Class Vehicles would have

been repaired without cost to purchasers as so required under the original warranty.

756. Defendants fraudulently concealed unmistakable manifestations of impending

Class Vehicle engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

757. Defendants violated OCSPA by failing to inform Class Vehicle owners prior to

purchase and/or after the time of purchase during the warranty period that class engines were

defectively designed, manufactured, and materially constituted and were accompanied by

incorrect maintenance recommendations and maintenance intervals.

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758. Defendants violated OCSPA by failing to inform Class Vehicle owners prior to

purchase and/or after the time of purchase during the warranty period that Class Vehicles

contained defects and would require regular replacement of expensive internal engine

components, including the timing chain system.

759. Defendants further violated OCSPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the vehicles, including but not

limited to the Timing Chain System.

760. Defendants committed unfair and deceptive trade practices as described in this

count. Defendants repeatedly violated OCSPA on multiple occasions with their continuous

course of conduct including omissions of material fact and misrepresentations concerning inter

alia, the causes of the failures of class engines owned by Plaintiff Scott and members of the Ohio

Sub-Class.

761. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants that violates OCSPA occurred within the limitations

period set out in the statute and/or is tolled by Defendants’ conduct.

762. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Scott and members of the Ohio Sub-Class purchased or leased Class Vehicles

and sustained ascertainable loss and financial harm.

763. Plaintiff Scott and members of the Ohio Sub-Class experienced premature Timing

Chain System and/or engine failure, diminution of vehicle resale value, increased maintenance

costs and incurred other substantial monetary damages and inconvenience.

764. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

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substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

765. Plaintiff Scott and members of the Ohio Sub-Class demand judgment against

defendants including statutory and actual monetary damages, multiple damages, interest, costs,

attorneys' fees and injunctive relief.

COUNT XXXI

VIOLATION OF THE PENNSYLVANIA UNFAIR TRADE PRACTICES AND CONSUMER PROTECTION LAW, 73 P.S. §§ 201-1 ET SEQ. (ON BEHALF OF PLAINTIFFS PIPE, SCHAFFRANEK AND THE PENNSYLVANIA SUB-CLASS)

766. Plaintiffs Pipe and Schaffranek incorporate by reference all allegations in the

above preceding paragraphs as if set forth fully in this count.

767. Plaintiffs Pipe and Schaffranek assert this count on behalf of themselves and

members of the Pennsylvania Sub-Class.

768. Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class are

persons within the context of the Pennsylvania Unfair Trade Practices and Consumer Protection

Law, 73 P.S. §§ 201-1 et seq. (hereinafter “PUTPCPL”), specifically § 201-2(2).

769. Defendants are persons within the context of PUTPCPL, § 201-2(2).

770. Defendants are engaged in trade and commerce within the context of PUTPCPL,

§ 201-2(3).

771. Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class

purchased and/or leased Class Vehicles for personal, family or household use.

772. Defendants committed unfair and deceptive acts in the course of trade and

commerce as described in this complaint in violation of PUTPCPL, § 201-2(4)(v), (vii), (ix) and

(xxi), inter alia .

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773. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the class

engine’s Timing Chain System with intent that Plaintiffs Pipe and Schaffranek and members of

the Pennsylvania Sub-Class would rely upon their misrepresentations in connection with the sale

and/or advertisement of Class Vehicles.

774. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class

the required maintenance and/or maintenance intervals of Class Vehicle engines, including but

not limited to the Timing Chain System.

775. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class

the characteristics of Class Vehicle engines with respect to material, manufacture, durability,

design, longevity, maintenance and operating costs. Defendants extensively advertised that

Class Vehicles were superior in construction and extolled the quality and virtues of Class

Vehicles, including superior materials, workmanship, design, manufacture, safety, durability,

reliability and performance, and also included an engine life exceeding 120,000 miles. In fact,

class engines contained a known defect as described in this complaint that caused class engines

to prematurely fail.

776. Defendants actively suppressed the fact that Class Vehicles were prematurely

failing because of materials, workmanship, design and manufacture defects, as well as incorrect

maintenance recommendations and maintenance intervals.

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777. Defendants secretly repaired some Timing Chain Systems to prevent

dissemination of knowledge concerning class engine defects.

778. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost for repairs to individual vehicle

owners.

779. One scheme included blaming class engine failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

Rather than conduct an open and fair inspection and repair procedure for all Class Vehicles,

Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the PUTPCPL.

780. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiffs Pipe and Schaffranek and members of the

Pennsylvania Sub-Class were caused to expend sums of money in purchasing and later repairing

their Class Vehicles . As reasonable consumers, Plaintiffs Pipe and Schaffranek and members of

the Pennsylvania Sub-Class had no reasonable way to know that Class Vehicles contained

Timing Chain Systems which were defective in materials, workmanship, design and

manufacture. Any reasonable consumer under the circumstances would have relied on the

representations of Defendants who alone possessed the knowledge as to the quality and

characteristics of the Class Vehicles, including the engine and Timing Chain System durability.

781. If Defendants had not concealed class engine defects from Plaintiffs Pipe and

Schaffranek and members of the Pennsylvania Sub-Class within the express warranty period,

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class engines would have been repaired without cost to purchasers as promised under the original

warranty.

782. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

783. Defendants violated the PUTPCPL by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that class engines were defective in

materials, workmanship, design and manufacture and were accompanied by incorrect

maintenance recommendations and maintenance intervals.

784. Defendants violated the PUTPCPL by failing to inform Class Vehicle owners

prior to purchase and/or during the warranty period that class engines contained defects and

would require regular replacement of expensive internal engine components such as the Timing

Chain System.

785. Defendants further violated the PUTPCPL by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

786. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the PUTPCPL on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of class engines owned by Plaintiffs Pipe and

Schaffranek and members of the Pennsylvania Sub-Class.

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787. The secret warranty programs for class engines initiated by Defendants and other

wrongful conduct of Defendants in violation of PUTPCPL occurred within the limitations period

set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

788. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class purchased

or leased Class Vehicles and sustained an ascertainable loss and financial harm.

789. Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class

experienced premature class engine failure, diminution of Class Vehicle resale value, increased

repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

790. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

791. Plaintiffs Pipe and Schaffranek and members of the Pennsylvania Sub-Class

demand judgment against Defendants for restitution, disgorgement, statutory and actual

monetary damages including multiple damages, interest, costs, attorneys’ fees and injunctive

relief including a declaratory judgment and an appropriate court order prohibiting Defendants

from further deceptive acts and practices described in this complaint.

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COUNT XXXII

VIOLATION OF THE SOUTH CAROLINA CONSUMER UNFAIR TRADE PRACTICES ACT, S.C. CODE §§ 39-5-10 ET SEQ . (ON BEHALF OF PLAINTIFF BORCHINO AND THE SOUTH CAROLINA SUB-CLASS)

792. Plaintiff Borchino incorporates and realleges each preceding paragraph as though

fully set forth herein.

793. Plaintiff Borchino asserts this count on behalf of himself and members of the

South Carolina Sub-Class.

794. Plaintiff Borchino and members of the South Carolina Sub-Class are persons

within the context of the South Carolina Unfair Trade Practices Act (hereinafter “SCUTPA”),

S.C. Code § 39-5-10 et al . and specifically § 39-5-10(a).

795. Plaintiff Borchino and members of the South Carolina Sub-Class purchased

and/or leased Class Vehicles for personal, family or household use.

796. Defendants are persons within the context of the SCUTPA, S.C. Code § 39-5-

10(a) and are engaged in trade and commerce in South Carolina as described in S.C. Code § 39-

5-10(b).

797. Defendants are engaged in unconscionable, unlawful, deceptive and unfair trade

practices within the context of the SCUTPA, S.C. Code § 39-5-20 as described in this complaint,

798. Defendants committed unconscionable, deceptive and unfair trade practices

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System with intent that Plaintiff Borchino and members of the South Carolina Sub-Class

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would rely upon their misrepresentations in connection with the sale and/or advertisement of

Class Vehicles.

799. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Borchino and members of the South Carolina Sub-Class the required

maintenance and/or maintenance intervals of Class Vehicle engines, including but not limited to

the Timing Chain System.

800. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Borchino and members of the South Carolina Sub-Class the

characteristics of Class Vehicle engines with respect to material, manufacture, durability, design,

longevity, maintenance and operating costs. Defendants extensively advertised that Class

Vehicles were superior in construction and extolled the quality and virtues of Class Vehicles,

including superior materials, workmanship, design, manufacture, safety, durability, reliability

and performance, and also included an engine life exceeding 120,000 miles. In fact, engines in

Class Vehicles contained a known defect as described in this complaint that caused the Timing

Chain System to prematurely fail.

801. Defendants actively suppressed the fact that Timing Chain Systems and engines

in Class Vehicles were prematurely failing because of materials, workmanship, design and

manufacture defects, as well as incorrect maintenance recommendations and maintenance

intervals.

802. Defendants secretly repaired some Timing Chain Systems in Class Vehicles to

prevent dissemination of knowledge concerning Timing Chain System defects.

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803. Although Defendants knew defects in Timing Chain Systems and misinformation

in the owner’s manuals were causing premature class engine failures, Defendants denied any

liability and attempted to shift the responsibility and cost of repairs to individual vehicle owners.

804. One scheme included blaming Timing Chain System failures on owners for poor

or improper maintenance and other conditions for which Defendants were not allegedly

responsible. Rather than conduct an open and fair inspection and repair procedure for all Timing

Chain Systems, Defendants employed unfair and deceptive trade practices to deny repairs or

repair reimbursements in violation of SCUTPA.

805. Defendants’ deceptive trade practices were likely to deceive a consumer acting

reasonably under the circumstances which Plaintiff Borchino and members of the South Carolina

Sub-Class were caused to expend sums of money in purchasing and later repairing their Class

Vehicles . As reasonable consumers, Plaintiff Borchino and members of the South Carolina Sub-

Class had no reasonable way to know that Class Vehicles contained Timing Chain Systems

which were defective in materials, workmanship, design and manufacture. Any reasonable

consumer under the circumstances would have relied on the representations of Defendants who

alone possessed the knowledge as to the quality and characteristics of the Class Vehicles,

including the engine and Timing Chain System durability.

806. If Defendants had not concealed class engine defects from Plaintiff Borchino and

members of the South Carolina Sub-Class within the express warranty period, Timing Chain

Systems would have been repaired without cost to purchasers as promised under the original

warranty.

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807. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

808. Defendants violated the SCUTPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines were defective in materials,

workmanship, design and manufacture and were accompanied by incorrect maintenance

recommendations and maintenance intervals.

809. Defendants violated the SCUTPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that Class Vehicles contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

810. Defendants further violated the SCUTPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines including but not limited

to the Timing Chain System.

811. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the SCUTPA on multiple occasions with their

continuous course of conduct including omissions of material fact and misrepresentations

concerning inter alia, the causes of the failures of Class Vehicles owned by Borchino and

members of the South Carolina Sub-Class.

812. The secret warranty programs for Class Vehicles initiated by Defendants and

other wrongful conduct of Defendants in violation of SCUTPA occurred within the limitations

period set out in the statute and/or the limitations period is tolled by Defendants’ conduct.

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813. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Borchino and members of the South Carolina Sub-Class purchased or leased

Class Vehicles and sustained an ascertainable loss and financial harm.

814. Plaintiff Borchino and members of the South Carolina Sub-Class experienced

premature class engine failure, increased repair and maintenance costs and incurred other

substantial monetary damages and inconvenience.

815. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

816. Plaintiff Borchino and members of the South Carolina Sub-Class demand

judgment against Defendants for restitution, disgorgement, statutory and actual monetary

damages including multiple damages, interest, costs, attorneys’ fees and injunctive relief

including a declaratory judgment and an appropriate court order prohibiting Defendants from

further deceptive acts and practices described in this complaint.

COUNT XXXIII

VIOLATION OF THE TEXAS DECEPTIVE TRADE PRACTICES-CONSUMER PROTECTION ACT, TEX. BUS. AND COMM. CODE §§ 17.41 ET SEQ . (ON BEHALF OF PLAINTIFF KANE AND THE TEXAS SUB-CLASS)

817. Plaintiff Kane incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

818. Plaintiff Kane asserts this count on behalf of herself and members of the Texas

Sub-Class.

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819. Plaintiff Kane and members of the Texas Sub-Class are persons and consumers

within the context of the Texas Deceptive Trade Practices-Consumer Protection Act, Tex. Bus.

and Comm. Code §§ 17.41 et seq. (hereinafter “TDTPA”) who purchased and/or leased Class

Vehicles for personal, family or household use, specifically § 17.45(3) and (4).

820. Defendants are persons within the context of TDTPA § 17.45(3) who sell goods

within the context of TDTPA § 17.45(1).

821. The sale of Class Vehicles in Texas constitutes trade and commerce of consumer

goods affecting the people of the state of Texas within the context of TDTPA § 17.45(6).

822. Defendants knowingly and intentionally violated TDTPA § 17.46(b)(5) by

representing Class Vehicles have characteristics, uses, benefits and/or qualities which they do not

possess.

823. Defendants violated TDTPA § 17.46(b)(7) by representing Class Vehicles are of a

particular standard, quality, or grade, when they are not.

824. Defendants violated TDTPA § 17.46(b)(24) by deception, fraud, false pretense,

false premise, misrepresentation, knowing concealment, suppression, and/or omission of material

facts concerning Class Vehicles with the intent to deceive Plaintiff Kane and members of the

Texas Sub-Class.

825. At the time Kane purchased her Class Vehicle, Defendants knew or should have

known that the Timing Chain System in the vehicle was defective and would prematurely fail

and/or had not been properly tested to ascertain its durational limitations. Defendants failed to

inform Plaintiff Kane of the defective Timing Chain System in her Class Vehicle at the time of

purchase and Plaintiff Kane had no independent knowledge of the defects. Commencing in

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approximately January of 2012, the majority of 2.0L TSI / TFSI engines incorporated the newly

designed tensioner and timing chain described in this complaint.

826. Defendants committed unfair and deceptive acts in the course of trade and

commerce within the context of the TDTPA as described in this complaint in violation of

TDTPA § 17.46.

827. Defendants committed unconscionable, deceptive and unfair trade practices,

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Timing

Chain System in connection with the sale and/or advertisement of Class Vehicles to the Plaintiff

Kane and members of the Texas Sub-Class.

828. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Kane and members of the Texas Sub-Class the required maintenance

and/or maintenance intervals of Class Vehicle engines, including but not limited to the Timing

Chain System.

829. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Kane and members of the Texas Sub-Class the characteristics of

Class Vehicle engines with respect to materials, manufacture, durability, design, longevity,

maintenance and operating costs. Defendants extensively advertised that Class Vehicles were

superior in construction and extolled the quality and virtues of Class Vehicles including superior

materials, workmanship, design, manufacture, safety, durability, reliability and performance

including an engine life exceeding 120,000 miles. In fact, class engines contained a known

defect as described in this complaint that caused the Timing Chain Systems and/or engines to

prematurely fail.

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830. Defendants actively suppressed the fact that Class Vehicles were prematurely

failing because of materials, workmanship, design and manufacture defects and incorrect

maintenance recommendations and maintenance intervals.

831. Defendants secretly repaired some Timing Chain Systems in an effort to prevent

dissemination of knowledge concerning class engine defects.

832. Defendants intended that Plaintiff Kane and members of the Texas Sub-Class

would, in the course of their decision to expend monies in purchasing, leasing and/or repairing

Class Vehicles, reasonably rely upon misrepresentations, misleading characterizations and

material omissions concerning the quality of class engines with respect to materials,

workmanship, design, manufacture and information in the owner’s manuals and USA Warranty

and Maintenance pamphlet, as well as any potential defects inherent in the engine components,

including the Timing Chain System.

833. Although Defendants knew that defects in Class Vehicles and misinformation in

the owner’s manuals were causing premature Timing Chain System and/or engine failures,

Defendants denied any liability and attempted to shift the responsibility and cost for repairs to

individual vehicle owners.

834. One scheme included blaming Class Vehicle failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

In fact, it was the concealed defects in the Timing Chain System that caused the Class Vehicle

failures.

835. Rather than conduct an open and fair inspection and repair procedure for all class

engines, Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the TDTPA.

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836. Information regarding a vehicle’s defective Timing Chain System as described in

this complaint is important to consumers in that the defect may cause engine failures and

necessitates expensive repairs, and, hence, is likely to affect a consumer’s choice of vehicle to

purchase or lease. Consumers typically will reasonably rely upon the manufacturers and sellers

to provide accurate information as to quality and character of the vehicle they are considering

purchasing or leasing.

837. If Defendants had not concealed class engine defects from Plaintiff Kane and

members of the Texas Sub-Class within the express warranty period, class engines would have

been repaired without cost to purchasers as promised under the original warranty.

838. Defendants fraudulently concealed unmistakable manifestations of impending

Class Vehicle failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

839. Defendants violated the TDTPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines were defectively designed and

manufactured and were accompanied by incorrect maintenance recommendations and

maintenance intervals.

840. Defendants violated the TDTPA by failing to inform Class Vehicle owners prior

to purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive internal engine components such as the Timing Chain

System.

841. Defendants further violated the TDTPA by failing to inform prospective Class

Vehicle purchasers that Defendants had not properly tested the engines, including but not limited

to the Timing Chain System.

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842. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the TDTPA on multiple occasions with their

continuous course of conduct, including omissions of material fact and misrepresentations

concerning inter alia , the causes of the failures of class engines owned by Kane and members of

the Texas Sub-Class.

843. The secret warranty programs for Class Vehicles initiated by Defendants along

with other wrongful conduct of Defendants in violation of the TDTPA occurred within the

limitations period set out in the statute and/or the limitations period is tolled by Defendants’

conduct.

844. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Kane and members of the Texas Sub-Class purchased or leased Class

Vehicles and sustained an ascertainable loss and financial harm.

845. Plaintiff Kane and members of the Texas Sub-Class experienced premature

Timing Chain System and/or engine failure, diminution of Class Vehicle resale value, increased

repair and maintenance costs and incurred other substantial monetary damages and

inconvenience.

846. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable and

substantial injury to Class Vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

847. Plaintiff Kane and members of the Texas Sub-Class provided notice pursuant to

TDTPA § 17.505 to Defendants via certified mail, return receipt requested on April 28, 2016.

No offer of settlement was received at the expiration of the 60-day notice period.

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848. Plaintiff Kane and members of the Texas Sub-Class demand judgment against

Defendants for restitution, disgorgement, statutory and actual monetary damages including

multiple damages, interest, costs, attorneys’ fees and injunctive relief including a declaratory

judgment and an appropriate court order prohibiting Defendants from further deceptive acts and

practices described in this complaint.

COUNT XXXIV

VIOLATION OF THE WASHINGTON CONSUMER PROTECTION ACT, WASH. REV. CODE §§ 19.86.010 ET SEQ . (ON BEHALF OF PLAINTIFF GOSSMAN AND THE WASHINGTON SUB-CLASS)

849. Plaintiff Gossman incorporates by reference all allegations in the above preceding

paragraphs as if set forth fully in this count.

850. Plaintiff Gossman asserts this count on behalf of himself and members of the

Washington Sub-Class.

851. Plaintiff Gossman and members of the Washington Sub-Class are persons within

the context of the Washington Consumer Protection Act, Wash. Rev. Code §§ 19.86.010 et seq.

(hereinafter “WCPA”) who purchased and/or leased class vehicles for personal, family or

household use, specifically § 19.86.010(1).

852. Defendants are persons within the context of WCPA § 19.86.010(1).

853. The sale of Class Vehicles in Washington constitutes trade and commerce of

consumer goods affecting the people of the state of Washington within the context of WCPA §

19.86.010(2).

854. Defendants violated WCPA § 19.86.020 and § 19.86.093 by representing that

Class Vehicles have characteristics, uses, benefits and/or qualities they do not possess. This

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conduct is injurious to the public interest because it injured other persons, had the capacity to

injure other persons and/or has the capacity to injure other persons.

855. Defendants violated WCPA § 19.86.020 and § 19.86.093 by representing that

Class Vehicles are of a particular standard, quality, or grade, when they are not. This conduct is

injurious to the public interest because it injured other persons, had the capacity to injure other

persons and/or has the capacity to injure other persons.

856. Defendants violated WCPA § 19.86.020 and § 19.86.093 by failing to state a

material fact that deceives or tends to deceive. This conduct is injurious to the public interest

because it injured other persons, had the capacity to injure other persons and/or has the capacity

to injure other persons.

857. Defendants violated WCPA § 19.86.020 and § 19.86.093 by advertising Class

Vehicles without intent to sell or lease as advertised. This conduct is injurious to the public

interest because it injured other persons, had the capacity to injure other persons and/or has the

capacity to injure other persons.

858. Defendants violated WCPA § 19.86.020 and § 19.86.093 by selling class vehicles

knowing that a service, replacement or repair was needed. This conduct is injurious to the public

interest because it injured other persons, had the capacity to injure other persons and/or has the

capacity to injure other persons.

859. Defendants violated WCPA § 19.86.020 and § 19.86.093 by deception, fraud,

false pretense, false premise, misrepresentation, knowing concealment, suppression, and/or

omission of material facts concerning class vehicles with the intent to deceive Plaintiff Gossman

and members of the Washington Sub-Class. This conduct is injurious to the public interest

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because it injured other persons, had the capacity to injure other persons and/or has the capacity

to injure other persons.

860. At the time Plaintiff Gossman purchased his pre-owned class vehicle in December

of 2014, Defendants knew that the Chain Tensioner in the vehicle was defective and would

prematurely fail because the Defendants had previously redesigned the 2.0L TSI tensioner and

timing chain for new vehicle models more than three years earlier in an effort to correct

deficiencies in the system. Defendants failed to inform Plaintiff Gossman of the defective timing

chain system in his class vehicle at the time of purchase and Plaintiff Gossman had no

independent knowledge of the defects. Commencing in approximately January 2012, the

majority of 2.0L TSI/TFSI engines incorporated the newly designed tensioner and timing chain

described in this complaint.

861. Defendants committed unfair and deceptive acts in the course of trade and

commerce within the context of the WCPA as described in this complaint in violation of WCPA

§ 19.86.020 and § 19.86.093.

862. Defendants committed unconscionable, deceptive and unfair trade practices,

including but not limited to deception, fraud, false pretense, false promise, misrepresentation and

the knowing concealment, suppression and omission of material facts concerning the Class

Vehicles’ Timing Chain Systems in connection with the sale and/or advertisement of Class

Vehicles to the Plaintiff Gossman and members of the Washington Sub-Class.

863. Defendants fraudulently, intentionally, negligently, and/or recklessly

misrepresented to Plaintiff Gossman and members of the Washington Sub-Class the required

maintenance and/or maintenance intervals of class vehicle engines, including but not limited to

the Timing Chain System.

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864. Defendants fraudulently, intentionally, negligently and/or recklessly

misrepresented to Plaintiff Gossman and members of the Washington Sub-Class the

characteristics of class vehicle engines with respect to materials, manufacture, durability, design,

longevity, maintenance and operating costs. Defendants extensively advertised that class

vehicles were superior in construction and extolled the quality and virtues of Class Vehicles

including superior materials, workmanship, design, manufacture, safety, durability, reliability

and performance including an engine life exceeding 120,000 miles. In fact, class engines

contained a known defect as described in this complaint that caused class engines to prematurely

fail.

865. Defendants actively suppressed the fact that class engines were prematurely

failing because of materials, workmanship, design and manufacture defects and incorrect

maintenance recommendations and maintenance intervals.

866. Defendants secretly repaired some class engines in an effort to prevent

dissemination of knowledge concerning class engine defects.

867. Defendants intended that Plaintiff Gossman and members of the Washington Sub-

Class would, in the course of their decision to expend monies in purchasing, leasing and/or

repairing class vehicles, reasonably rely upon misrepresentations, misleading characterizations

and material omissions concerning the quality of class engines with respect to materials,

workmanship, design, manufacture and information in the owner’s manuals and USA Warranty

and Maintenance pamphlet, as well as any potential defects inherent in the engine components,

including the Timing Chain System.

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868. Although Defendants knew defects in class engines and misinformation in the

owner’s manuals were causing premature class engine failures, Defendants denied any liability

and attempted to shift the responsibility and cost for repairs to individual vehicle owners.

869. One scheme included blaming class engine failures on owners for poor or

improper maintenance and other conditions for which Defendants were not allegedly responsible.

In fact, it was the concealed defects in the Timing Chain System that caused the class engine

failures.

870. Rather than conduct an open and fair inspection and repair procedure for all class

engines, Defendants employed unfair and deceptive trade practices to deny repairs or repair

reimbursements in violation of the WCPA.

871. Information regarding a vehicle’s defective Timing Chain System as described in

this complaint is important to consumers in that the defect causes engine failures and necessitates

expensive repairs, and, hence, is likely to affect a consumer’s choice of vehicle to purchase or

lease. Consumers typically will reasonably rely upon the manufacturers and sellers to provide

accurate information as to quality and character of the vehicle they are considering purchasing or

leasing.

872. If Defendants had not concealed class engine defects from Plaintiff Gossman and

members of the Washington Sub-Class within the express warranty period, class engines would

have been repaired without cost to purchasers as promised under the original warranty.

873. Defendants fraudulently concealed unmistakable manifestations of impending

class engine failures within the express warranty period without inspecting, repairing or

replacing damaged internal class engine components.

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874. Defendants violated the WCPA by failing to inform class vehicle owners prior to

purchase and/or during the warranty period that class engines were defectively designed and

manufactured and were accompanied by incorrect maintenance recommendations and

maintenance intervals.

875. Defendants violated the WCPA by failing to inform class vehicle owners prior to

purchase and/or during the warranty period that class engines contained defects and would

require regular replacement of expensive internal engine components such as the timing chain

system.

876. Defendants further violated the WCPA by failing to inform prospective class

vehicle purchasers that the Defendants had not properly tested the engines, including but not

limited to the timing chain system.

877. Defendants committed unfair and deceptive trade practices as described in this

complaint. Defendants repeatedly violated the WCPA on multiple occasions with their

continuous course of conduct, including omissions of material fact and misrepresentations

concerning inter alia , the causes of the failures of class engines owned by Plaintiff Gossman and

members of the Washington Sub-Class.

878. The secret warranty programs for class engines initiated by the Defendants along

with other wrongful conduct of the Defendants in violation of the WCPA occurred within the

limitations period set out in the statute and/or is tolled by Defendants’ conduct.

879. As a proximate and direct result of Defendants’ unfair and deceptive trade

practices, Plaintiff Gossman and members of the Washington Sub-Class purchased or leased

class vehicles and sustained an ascertainable loss and financial harm.

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880. Plaintiff Gossman and members of the Washington Sub-Class experienced

premature class engine failure, diminution of class vehicle resale value, increased repair and

maintenance costs and incurred other substantial monetary damages and inconvenience.

881. The conduct of Defendants offends public policy as established by statutes and

common law; is immoral, unethical, oppressive and/or unscrupulous and caused unavoidable and

substantial injury to class vehicle owners (who were unable to have reasonably avoided the

injury due to no fault of their own) without any countervailing benefits to consumers.

882. Plaintiff Gossman and members of the Washington Sub-Class demand judgment

against the Defendants for restitution, disgorgement, statutory and actual monetary damages

including multiple damages, interest, costs, attorneys’ fees and injunctive relief including a

declaratory judgment and an appropriate court order prohibiting Defendants from further

deceptive acts and practices described in this complaint.

IX. PRAYER FOR RELIEF

WHEREFORE, Plaintiffs, on behalf of themselves and all others similarly situated,

respectfully request that this Court enter judgment against Defendants and in favor of Plaintiffs

and the Class and Sub-Classes, and award the following relief:

A. An order certifying this action as a class action pursuant to Rule 23 of the Federal

Rules of Civil Procedure, declaring Plaintiffs as the representatives of the Class

and Sub-Classes, and Plaintiffs’ counsel as counsel for the Class and Sub-Classes;

B. An order awarding declaratory relief and enjoining Defendants from continuing

the unlawful, deceptive, fraudulent, harmful, and unfair business conduct and

practices alleged herein;

C. Injunctive and equitable relief in the form of a comprehensive program to repair

or replace the Timing Chain System in all Class Vehicles, and/or buyback all

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Class Vehicles, and to fully reimburse and make whole all members of the

Classes for all costs and economic losses;

D. A declaration that Defendants are financially responsible for all Class notice and

the administration of Class relief;

E. An order awarding costs, restitution, disgorgement, punitive damages, treble

damages and exemplary damages under applicable law, and compensatory

damages for economic loss and out-of-pocket costs in an amount to be determined

at trial;

F. An order awarding any applicable statutory and civil penalties;

G. A declaration that Defendants are required to engage in corrective advertising;

H. An order requiring Defendants to pay both pre- and post-judgment interest on any

amounts awarded;

I. An award of costs, expenses and attorneys’ fees as permitted by law; and

J. Such other or further relief as the Court may deem appropriate, just, and

equitable.

X. DEMAND FOR JURY TRIAL

Pursuant to Federal Rule of Civil Procedure 38(b), Plaintiffs demand a trial by jury of any

and all issues in this action so triable of right.

DATED: August 22, 2016 Respectfully submitted,

/s/ James E. Cecchi James E. Cecchi Lindsey H. Taylor CARELLA, BYRNE, CECCHI, OLSTEIN, BRODY & AGNELLO, P.C. 5 Becker Farm Road Roseland, New Jersey 07068

199 Case 2:16-cv-02765-JLL-JAD Document 6 Filed 08/22/16 Page 202 of 203 PageID: 643

Telephone: (973)-994-1700 Facsimile: (973)-994-1744

Gary S. Graifman, Esq. Jay I. Brody, Esq. KANTROWITZ GOLDHAMER & GRAIFMAN, P.C. 210 Summit Avenue Montvale, New Jersey 07645 Telephone: (201) 391-7000

Joseph H. Meltzer Peter A. Muhic Melissa L. Troutner ( Pro Hac Vice to be filed ) Ethan Barlieb KESSLER TOPAZ MELTZER & CHECK, LLP 280 King of Prussia Road Radnor, PA 19087 Telephone: (610) 667-7706 Facsimile: (610) 667-7056

Thomas P. Sobran, Esq. (Pro Hac Vice to be filed ) THOMAS P. SOBRAN, P.C. 7 Evergreen Lane Hingham, MA 02043 Telephone: (781) 741-6075

Matthew Mendelsohn David A. Mazie Adam M. Slater MAZIE SLATER KATZ & FREEMAN, LLC 103 Eisenhower Parkway Roseland, New Jersey 07068 Telephone: (973) 228-9898

Joseph G. Sauder Matthew D. Schelkopf Joseph B. Kenney MCCUNEWRIGHT LLP 1055 Westlakes Drive, Suite 300 Berwyn, PA 19312 Telephone: (909) 557-1250

Christopher A. Seeger David R. Buchanan

200 Case 2:16-cv-02765-JLL-JAD Document 6 Filed 08/22/16 Page 203 of 203 PageID: 644

Scott Alan George SEEGER WEISS LLP 550 Broad Street Newark, NJ 07102 Telephone:(973) 639-9100

Roland Tellis ( Pro Hac Vice to be filed ) Mark Pifko ( Pro Hac Vice to be filed )) Peter Klausner ( Pro Hac Vice to be filed ) BARON & BUDD, P.C. 15910 Ventura Boulevard, Suite 1600 Encino, California 91436 Telephone: (818) 839-2333

Attorneys for Plaintiffs and the proposed Classes

201 Case 2:16-cv-02765-JLL-JAD Document 6-1 Filed 08/22/16 Page 1 of 5 PageID: 645

EXHIBIT A

Case 2:16-cv-02765-JLL-JAD Document 6-1 Filed 08/22/16 Page 2 of 5 PageID: 646 2010 Volkswagen Maintenance Schedule For USA Carefree Maintenance Program USA Only All Models except Routan Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K 110K 120K

AdBlue®. Fluid: Check fluid level and add if necessary (3.0L TDI only) X, *X, *X, *XXXXXXXXX Airbag system: Perform visual inspection (Every 1 year regardless of mileage) 1, *1, *1, *1, *1, *1, *1, *1, *1, *1, *1, *1, * Air filter element and snow filter: Replace and clean housing 9, * 9, * (if applicable) (Every 6 years regardless of mileage) Battery: Check (and second battery if applicable) XXXXXX Body: Visual inspection for corrosion XXX Brake pads: Check thickness and brake disc condition (front and rear) XXXXXX Brakes: Inspect brake system and shock absorber for leaks and damage, check XXXXXX thickness of brake pads, brake disc condition and check brake fluid level Brake fluid: Change fluid (New Beetle only) (Every 2 years regardless of 5, * 5, * 5, * 5, * 5, * 5, * mileage) Brake fluid: Change fluid (Touareg, Eos, Passat models, Jetta models, GTI, 6, * 6, *6, *6, *6, * Golf, Tiguan, and CC) (Every 3 years regardless of mileage and every 2 years Convertible roof, CSC roof, and retractable hard top: Check for function and XXX damage, clean and lubricate seals (if applicable) Coolant level and frost protection: Check XXX Convertible roof: Check latch: (if applicable) (Every 2 years regardless of 2, * 2, *2, *2, *2, *2, * mileage) CV joints: Check for leaks and damage XXX Diesel particulate filter: Only after 120,000 miles: Check ash loading according to manufacturer work procedure. Replace if necessary. Note: If DPF replacement is not necessary, perform check every 10,000 miles thereafter until replacement X becomes necessary. Subsequent DPF replacement interval is a minimum of 120,000 miles, thereafter.(2.0L TDI and 3.0L TDI only) Door checks and mounting pins: Lubricate XXX Dust and pollen filter: Replace (if applicable) 4, * 4, *4, *4, *4, *4, * Engine: Change oil and replace oil filter XXXXXXXXXXXX (from above) Engine and engine compartment components: Check for leaks and XXX damage (from below) Engine and engine compartment components: Check for leaks and XXX damage, check transmission, final drive, and drive shaft boots Exhaust system: Check for leaks, damage and secure fittings XXX Case 2:16-cv-02765-JLL-JAD Document 6-1 Filed 08/22/16 Page 3 of 5 PageID: 647

2010 Volkswagen Maintenance Schedule For USA Carefree Maintenance Program USA Only All Models except Routan Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K 110K 120K

Fuel filter: Replace (2.0L TDI only) XXXXXX Fuel filter: Drain water (3.0L TDI only) XXX Fuel filter: Replace (3.0L TDI only) XXX Haldex Clutch: Change oil (if applicable) XXX Headlights, daytime running lights, curve lighting, and automatic headlights: Check XXX adjustment Interior lighting and glove box lights, cigarette lighter / power outlets, horn, and all XXX warning lamps: Check Lighting: Front and rear lights, luggage compartment lighting, turn signals, hazard warning lights, daytime running lights, curve lighting, and automatic headlights: XXX Check Power steering: Check oil level (if applicable) XXX Rear window: Check cleaning nozzle functionality (if applicable) XXXXXXXXXXXX Ribbed V-belt: Check condition XXX Service interval display: Reset (if applicable) XXXXXXXXXXXX Service sticker: Enter the date of the next service on the service sticker and apply to XXXXXXXXXXXX the driver's side door pillar Spark plugs: Replace (2.5L and 3.2L only) XX8, * Spark plugs: Replace (2.0T, 3.6L and 4.2L only) X8, * Sunroof and panoramic sunroof: Check, clean, and lubricate (if applicable) XXX Sunroof: Open sunroof and check front water drains and clean if necessary (if XXX applicable) Test drive: Check braking, kick-down, steering, electrical, heating and ventilation XXX systems, air conditioning, and handling Tie rod ends: Check for excessive play, check boots XXX Timing Belt: Replace (if applicable, except 2.0L TDI) X Timing belt: Replace (2.0L TDI only) X Tires: Check tread depth, condition, tire age, wear pattern and pressure of all tires XXXXXX (including spare) Tires: Rotate front to rear XXXXXXXXXXXX Case 2:16-cv-02765-JLL-JAD Document 6-1 Filed 08/22/16 Page 4 of 5 PageID: 648

2010 Volkswagen Maintenance Schedule For USA Carefree Maintenance Program USA Only All Models except Routan Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K 110K 120K

Tire mobility kit: Check and observe expiration date on the tire filler bottle (Every 2 3, * 3, *3, *3, *3, *3, * years regardless of mileage) Tire mobility kit: Replace tire filler bottle (Every 4 years regardless of mileage) 7, *7, *7, * Tire pressure sensors: Replace (Every 6 years regardless of mileage) 10, * 10, * Transmission: Automatic :Change fluid (2.5L Jetta models, NB and NBC, and XX Golf) Transmission: DSG (non automatic): Change fluid and filter XXX Underbody sealant: Inspect for damage XXX Windshield washers, headlight cleaning system, and wiper blades: Check for XXXXXXXXXXXX damage and function, Check fluid level and add if necessary * Carefree Maintenance Program - Time dependent items will be included in scheduled maintenance intervals if applicable * At 5K, 15K, 25K, 35K: AdBlue® Fluid: Check fluid level and add if necessary (3.0L TDI) 1. Every 1 year, regardless of mileage: Perform visual check of airbag system 2. Every 2 years, regardless of mileage: Check latch for convertible roof (if applicable) 3. Every 2 years, regardless of mileage: Check and observe the date on the tire filler bottle in the tire mobility kit (if applicable) 4. Every 2 years: Replace dust and pollen filter (if applicable)(if replacement not completed at scheduled intervals) 5. Every 2 years, regardless of mileage and every 2 years after: Change brake fluid (New Beetle only) 6. Every 3 years, regardless of mileage and every 2 years after: Change brake fluid (Touareg, Eos, Passat Models, Jetta Models, GTI, Golf, Tiguan, and CC) 7. Every 4 years, regardless of mileage: Replace tire filler bottle in tire mobility set (Observe expiration date) 8. Every 6 years regardless of mileage: Replace spark plugs 9. Every 6 years regardless of mileage: Air filter element and snow filter: replace and clean housing (if applicable) 10. Every 6 years, regardless of mileage: Change tire pressure sensors (if applicable) 11. At 45K, 55K, 65K, 75K, 85K, 95K, 105K, 115K, 125K and every 5K after: AdBlue® Fluid: Check fluid level and add if necessary (3.0L TDI) © 2012 Volkswagen Group of America, Inc. Case 2:16-cv-02765-JLL-JAD Document 6-1 Filed 08/22/16 Page 5 of 5 PageID: 649

2010 Volkswagen Maintenance Schedule For USA Carefree Maintenance Program USA Only All Models except Routan Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K 110K 120K

All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher. Revised: October 2012 Case 2:16-cv-02765-JLL-JAD Document 6-2 Filed 08/22/16 Page 1 of 4 PageID: 650 EXHIBIT B

Case 2:16-cv-02765-JLL-JAD Document 6-2 FiledCarefree 08/22/16 Page 2 of 4 PageID: 651 2009 Volkswagen Maintenance Schedule For USA Maintenance Program USA All Models except Routan Only Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K110K 120K 130K

AdBlue®. Fluid: Check fluid level ( add if necessary ) X *X *X *XXXXXXXXXX

Airbag system: Perform visual inspection (Every 1 year regardless of mileage) 1 * 1 * 1 * Air filter element: Replace and clean housing ( if applicable ) (Every 6 years 9 regardless of mileage) Battery: Check XXXXXX Body: Visual inspection for corrosion XXX Brake pads: Check brake pad thickness XXXXXXX Brakes: Inspect brake system for leaks and damage, check thickness of brake XXXXXX pads and check brake fluid level Brake fluid: Change fluid (New Beetle Only) (Every 2 years regardless of 5 * mileage) Brake fluid: Change fluid ( Touareg, Eos, Passat models, Jetta models, GTI, 6 * Rabbit, Tiguan, and Passat CC ) (Every 3 years regardless of mileage) Cooling level and frost protection: Check XXX Convertible roof: Check for function and damage. Clean and lubricate XXX ( if applicable ) Convertible roof: Check latch: (if applicable) (Every 2 years regardless of 3 * mileage) CV joints: Check for leaks and damage XXX Diesel particle filter: Check X Diesel particle filter: Check ash content within the filter. Replace the filter if ash X content is greater than .46 liters (3.0L TDI engine only) Door checks: Lubricate XXX Dust and pollen Filter: Replace ( if applicable ) (Every 2 years regardless of 2 * mileage) Engine: Change oil and replace oil filter XXXXXXXXXXXXX ( from above ) Engine and engine compartment components: Check for leaks and XXX damage ( from below ) Engine and engine compartment components: Check for leaks and XXX damage, check transmission, final drive, and drive shaft boots Exhaust system: Check for leaks, damage and secure fittings XXX Fuel filter: Replace ( 2.0L TDI only ) XXXXXX Case 2:16-cv-02765-JLL-JAD Document 6-2 FiledCarefree 08/22/16 Page 3 of 4 PageID: 652 2009 Volkswagen Maintenance Schedule For USA Maintenance Program USA All Models except Routan Only Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K110K 120K 130K

Fuel filter: Drain Water ( 3.0L TDI only ) XXX Fuel filter: Replace ( 3.0L TDI only ) XXX Haldex clutch: Change oil ( if applicable ) XXX Headlights: Check cleaning nozzle functionality ( if applicable ) XXXXXXXXXXXXX Headlights: Check adjustment XXX Interior and glove box lights, cigarette lighter / power outlets, horn, and all warning XXX lamps: Check Power steering: Check oil level (if applicable) XXX Rear window: Check cleaning nozzle functionality (if applicable) XXXXXXXXXXXXX Retractable hard top: Check for function and damage (if applicable) XXX Ribbed V-belt: Check condition XXX Second battery: Check (if applicable) XXXXXX Service Interval Display: Reset (if applicable) XXXXXXXXXXXXX Service sticker: Enter the date of the next service on the service sticker and apply XXXXXXXXXXXXX to the driver's side door pillar Spark plugs: Replace (2.5L and 3.2L only) XX8 Spark plugs: Replace (1.8L, 2.0L, 3.6L and 4.2L only) X8 Sunroof: Check, clean, and lubricate (if applicable) XXX Front sun roof drains: Open sun roof, check front water drains and clean if XXX necessary Test drive and final check XXX Tie rod ends: Check for excessive play, check boots XXX Timing Belt: Replace (if applicable) X Timing belt: Replace (2.0L TDI) X Tires: Check tread depth, condition, wear pattern and pressure of all tires XXXXXX (including spare) Tires: Rotate front to rear XXXXXXXXXXXXX Tire mobility kit: Check and observe date on the tire filler bottle (Every 2 years 4 * regardless of mileage) Tire mobility kit: Replace tire filler bottle (Every 4 years regardless of mileage) 7 Tire pressure sensors: Replace (Every 6 years regardless of mileage) 10 Case 2:16-cv-02765-JLL-JAD Document 6-2 Filed 08/22/16 Page 4 of 4 PageID: 653 Carefree 2009 Volkswagen Maintenance Schedule For USA Maintenance Program USA All Models except Routan Only Miles 10K 20K 30K 40K 50K 60K 70K 80K 90K 100K110K 120K 130K

Transmission: Automatic: Change fluid (2.5L Jetta Models, NB and NBC, Rabbit, XX and Golf) Transmission: DSG: Change fluid and filter XXX Underbody sealant: Inspect for damage XXX Windshield: Check cleaning nozzle functionality XXXXXXXXXXXXX Windshield and headlight washer systems: Check function and fluid level ( add if XXX necessary ), and inspect for damage Wiper blades: Check functionality XXXXXXXXXXXXX * Carefree Maintenance Program - Time dependent items will be included in scheduled maintenance intervals if applicable * At 5K, 15K, 25K, 35K: AdBlue® Fluid: Check fluid level ( add if necessary ) 1. Every 1 year, regardless of mileage: Perform visual check of airbag system 2. Every 2 years, regardless of mileage: Replace dust and pollen filter ( if applicable ) 3. Every 2 years, regardless of mileage: Check latch for convertible roof ( if applicable ) 4. Every 2 years, regardless of mileage: Check and observe the date on the tire filler bottle in the tire mobility kit 5. Every 2 years, regardless of mileage: Change brake fluid ( New Beetle only ) 6. Every 3 years, regardless of mileage:Change brake fluid( Touareg, Eos, Passat, Jetta models, GTI, Rabbit, Tiguan, and Passat CC ) 7. Every 4 years, regardless of mileage: Replace tire filler bottle in tire mobility set (Observe expiration date) 8. Every 6 years, regardless of mileage: Replace spark plugs 9. Every 6 years regardless of mileage: Change air filter element and clean housing ( if applicable ) 10. Every 6 years, regardless of mileage: Change tire pressure sensors ( if applicable ) 11. At 45K, 55K, 65K, 75K, 85K, 95K, 105K, 115K, 125K and every 5K after: AdBlue® Fluid: Check fluid level ( add if necessary )

© 2010 Volkswagen Group of America, Inc. All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher. Revised: February 2012 Case 2:16-cv-02765-JLL-JAD Document 6-3 Filed 08/22/16 Page 1 of 17 PageID: 654 EXHIBIT C

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Service Training

The 2.0L 4V TFSI Engine with AVS

Self-Study Program 922903 Case 2:16-cv-02765-JLL-JAD Document 6-4 Filed 08/22/16 Page 3 of 56 PageID: 673

Audi of America, LLC Service Training Printed in U.S.A. Printed 7/2009 Course Number 922903

©2009 Audi of America, LLC

All rights reserved. Information contained in this manual is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Audi of America, LLC., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, nor may these materials be modified or reposted to other sites without the prior expressed written permission of the publisher.

All requests for permission to copy and redistribute information should be referred to Audi of America, LLC.

Always check Technical Bulletins and the Audi Worldwide Repair Information System for information that may supersede any information included in this booklet. Case 2:16-cv-02765-JLL-JAD Document 6-4 Filed 08/22/16 Page 4 of 56 PageID: 674

Table of Contents

Introduction...... 1.

Engine Mechanicals...... 4.

Oil Circulation System...... 14.

SULEV 2 .0L TFSI Engine ...... 26.

Service...... 45.

EA 888 Engine Development ...... 46.

Knowledge Assessment ...... 51.

The Self-Study Program provides introductory information regarding the design Reference Note and function of new models, automotive components or technologies. The Self-Study Program is not a Repair Manual! All values given are intended as a guideline only and refer to the software version valid at the time of publication of the SSP. For maintenance and repair work, always refer to the current technical literature.

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Notes

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Introduction

The turbocharged 2.0L 4V chain-driven AVS engine (CAEB) The 2.0L 4V chain-driven AVS engine is a further described in this Self-Study Program is a development of development of the earlier CCTA/CBFA engine. The the 1.8L chain-driven engine (EA 888 family) introduced cylinder block, crankshaft assembly and pistons of the in Europe in 2006. The 1.8L engine, known as the Stage 0 CCTA/CFBA engine are similar to those of the CAEB engine, was the basis for the chain-driven 2.0L 4 cylinder engine. However, major changes to the cylinder head and engine (CCTA/CBFA) introduced in North America during the addition of the Audi Valve Lift System (AVS) to the the 2008 model year. exhaust camshaft of the CAEB distinguishes this engine from the CCTA/CBFA engines. This EA 888 family of engines is replacing the belt-driven camshaft engines within the Volkswagen Group world Also included in this Self-Study Program is a description wide. of changes needed to make a non-AVS 2.0L 4V chain- driven engine compliant with SULEV emission standards. To see a brief description of the development history and a specification comparison of the EA 888 engines, please see the Appendix at the end of this book.

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Introduction

Technical Description

Four Cylinder, Four Valve, FSI Turbocharged Gasoline Engine

Engine Block Engine Management

– Cast Iron Crankcase – MED 17 Engine Control – Balancer Shafts in Crankcase – Hot-Film Air Mass Flow with Integral Temperature – Forged Steel Crankshaft Sensor – Self-Regulating Sump-Mounted Oil Pump — – Throttle Valve with Contactless Sensor Chain-Driven by Crankshaft – Map-Controlled Ignition with Cylinder-Selective, – Timing Gear Chain — Front End of Engine Digital Knock Control – Balancer — Chain-Driven at Front End of Engine – Single-Spark Ignition Coils

Turbocharging Cylinder Head – Integral Exhaust Turbocharger – 4-Valve Cylinder Head – Charge-Air Cooler – 1 INA Intake Camshaft Adjuster – Boost Pressure Control with Overpressure – Audi Valve Lift System (AVS) on exhaust camshaft only – Electrical Wastegate Valve Intake Manifold Exhaust – Tumble Flap – Single-Chamber Exhaust System with Close-Coupled Pre-Catalyst Fuel Supply

– Demand Controlled on Low and High-pressure Ends Combustion Process – Multi-Port High-Pressure Injector – Fuel Straight Injection

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Introduction

Torque/Power Curve 201 (150) 265 (360)

Power in hp (kW) 243 (330) Torque in lb ft (Nm) 220 (300) 161 (120)

200 (270)

177 (240) 121 (90) 155 (210)

133 (180)

110 (150) 80 (60)

88 (120)

67 (90) 40 (30) 44 (60)

22 (30)

0 0 0 1000 2000 3000 4000 5000 6000 7000 Engine Speed in RPM

Specifications Engine Code CAEB Type of Engine Turbocharged Inline 4-Cylinder FSI Engine Displacement 121 cu in (1984 cm3) Maximum Power 200 hp (147 kW) @ 5100 – 6000 rpm Maximum Torque 206 lb ft (280 Nm) @ 1700 – 5000 rpm Number of Valves Per Cylinder4 Bore3.2 in (82.5 mm) Stroke3.7 in (92.8 mm) Compression Ratio9.6 : 1 Firing Order1-3-4-2 Engine Weight 317 lb (144 kg) Engine ManagementBosch MED 17.5 Fuel Grade 95/91 RON Exhaust Emission Standard ULEV II / SULEV for various states

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Engine Mechanicals

Audi Valve Lift System (AVS)

The Audi Valve Lift System (AVS) was developed to The of the 2.0L CAEB engine is separated. optimize the combustion charge cycle. AVS was This “firing sequence separation” means the gas pulses introduced in the North American Region with the 3.2L V6 produced during the exhaust cycles of the individual FSI engine in 2008. cylinders do not effect the pulses of the previously fired cylinders. The result is referred to as “pulse charging.” The AVS application on the turbocharged 2.0L CAEB engine is different from that of the 3.2L V6 AVS engine. On the 2.0L CAEB engine, AVS changes the lift and timing of the exhaust valves only.

Intake Camshaft

Exhaust Turbocharger

Exhaust Camshaft with Audi Valve Lift System

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Engine Mechanicals

The mechanical design and function of AVS on the The positive cylinder pressure gradient allows the 4-cylinder TFSI engine closely resembles the 6-cylinder combustion chamber to be effectively purged. This naturally aspirated engine. However, different enhances fuel mixture by reducing the residual gas thermodynamic effects are used. content in the cylinder, and by facilitating advanced intake valve timings (because less intake air is expelled At low engine speeds, a narrow profile cam lobe contour after BDC). is used. At high engine speeds the AVS changes to a wider profile cam lobe contour. These improvements also result in much better response and much higher torque at low rpm. Charge pressure can The narrow cam lobe contour provides very late exhaust be built up more quickly, making the torque curve steeper valve opening. This effectively prevents back-flow of and minimizing turbo lag. exhaust gas during the valve overlap phase due to the pre-exhaust pulse (at the exhaust valve opening point) of the cylinder, which is offset at 180° crankshaft angle. Advanced intake valve timings are therefore possible.

Design of the Exhaust Camshaft Cam Elements with Internal Splines

Exhaust camshaft with external splines

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Engine Mechanicals

Modifications to the Roller Cam Followers

The roller cam followers for the exhaust camshaft have At the same time, the roller cam followers have been been designed to reach both valve lift lobes on the cam optimized for low friction by using improved bearings. To elements. To achieve this, the roller is now larger in prevent the roller cam followers from tilting downward, diameter and narrower in width. they are permanently connected to the support element. For this reason, a roller cam follower can only be replaced with a complete, pre-assembled module.

Exhaust Side with Audi Intake Side Valve Lift System

Roller with Larger Diameter

Non-Detachable Connection to Support Element

Low Friction Bearing

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Engine Mechanicals

Function

Each cylinder has its own movable cam element mounted The cam element is designed to move automatically on the exhaust camshaft. Two valve lift contours are when the camshaft rotates, thereby changing over both possible for each exhaust valve. Changing-over between exhaust valves to the other cam lobe contour. the large and small cam lobe contours is achieved by the However, the displacement groove in the cam elements longitudinal displacement of the cam elements. must be shaped so that the metal actuator pin is pushed The cam elements are moved on the exhaust camshaft back again after the changeover is made. The metal pin by solenoid actuators. While one actuator switches cannot be actively changed back by the ECM. from small valve lift to large valve lift, the other actuator switches from large valve lift to small valve lift. The second actuator switches back from large valve lift to small valve lift. When an actuator is activated by the Engine Control Module (ECM), a metal pin is extended and engages in the displacement groove of the cam element. Actuators with Metal Pin

Ladder Frame

Axial Bearing Exhaust Displacement Camshaft Groove

Cam Element Locking of the Cam Elements

To ensure that the cam elements are not displaced too The cam elements are located and held in place by a far when they are adjusted, adjustment travel is limited detent in the camshaft with spring-loaded balls. by a stop. The stops are camshaft bearings in the cylinder head cover.

Spring-Loaded Ball

Cam Element

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Engine Mechanicals

Cam Lobe Contour

There are two cam lobe contours per valve on each cam element. The small cam lobes (shown in green) implement a valve opening stroke of 0.25 in (6.35 mm). The length of opening is 180° crankshaft angle. The exhaust valve closes 2° after TDC. The full stroke provided by the large cam lobes (shown in red) is 0.40 in (10 mm) with a length of opening of 215° crankshaft angle. The exhaust valve closes 8° before TDC.

Method of Operation

Small Cam Lobes Large Cam Lobes (low engine speeds) (high engine speeds)

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Engine Mechanicals

Camshaft Adjustment Actuators F366 – F373

The camshaft adjustment actuators are electromagnetic solenoid-type actuators. Two actuators are used per cylinder. One actuator moves the cam element on the camshaft for large valve lift. The other actuator resets the cam element for small valve lift. Each actuator is attached externally to the cylinder head cover by a bolt. They are sealed with O rings. When the actuator is activated by the ECM, a metal pin engages the displacement groove in the cam element, thereby moving the other cam lobe into position.

Design

Electrical Connection

Magnetic Coil

Mounting Permanent Lug Magnet

O-Ring

Damper Ring

Solenoid Core

Metal Pole Pin Plate

O-Ring Guide Tube

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Engine Mechanicals

Function

A solenoid is integrated in the actuator. When the The contour of the displacement groove is designed to solenoid is activated by the ECM, a metal pin is extended. push the metal pin of the actuator back after just under The solenoid is activated through brief application of one revolution of the actuator. The permanent magnet battery voltage. ensures that the metal pin remains in this position. When the permanent magnet pushes the metal pin, voltage is When the metal pin is extended, it is held in position by a induced in the magnetic coil of the solenoid. permanent magnet on the actuator housing. This return signal is registered by the ECM. It can only Due to the quick extension time (18 – 22 ms), the metal be generated if the metal pin is pushed by back by pin undergoes very rapid acceleration. A damping ring the displacement groove after the cam element has near the permanent magnet ensures that the pin does been moved. The ECM evaluates the signal input as a not bounce back or become damaged. successful adjustment. The metal pin extending into the displacement groove then moves the cam element as the camshaft rotates.

Electrical Connection Not Activated Activated

Magnetic Coil

Solenoid Coil

Pole Plate

Permanent Magnet

Damper Ring

Metal Pin

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Engine Mechanicals

Activation of the Cam Adjustment Actuators

The Camshaft Adjustment Actuators are activated by the ECM, which provides a ground signal. Voltage to the actuators is supplied by Motronic Engine Control Module Power Supply Relay J271. The system is ready for operation above a coolant temperature of 14°F (–10°C). When the engine is started, the larger contour lobes are in position. Immediately after engine start, the system changes over to the smaller contour lobes. When the engine stops, the AVS switches back to the large contour cam. The maximum power input per actuator is 3 amperes.

Legend

F366 – F373 Cam Adjustment Actuators J271 Motronic Engine Control Module Power Supply Relay J623 Engine Control Module (ECM)

Activation of a Cam Adjustment Actuator

End of Actuator Activation ] Return Signal on Correct Configuration bat Battery Voltage [U Battery

Actuator Activation

Adjustment Travel

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Engine Mechanicals

Changing Over Between Working Ranges

The illustration below shows in schematic form the In the engine speed range required for change-over to working range of the AVS when the engine is at operating large valve lift, the intake manifold flaps are also opened temperature. wide. It can be seen that the small valve lift is used up to medium engine speeds of approximately 3100 rpm.

Audi Valve Lift System (AVS) in the Operating Ranges

266 (360)

221 (300)

177 (240)

133 (180) Torque M in lb ft (Nm) Torque

86 (120)

44 (60)

1000 2000 3000 4000 5000 6000 7000

Engine Speed in [rpm]

1 llamS evlaV tfiL 3 egraL LevlaV tfi

2 Operating Point (at approximately 3100 rpm)

Note This illustration shows an example of a torque curve and AVS operating point. Both are dependent on the current ECM software version, and can change in the course of ongoing model development.

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Engine Mechanicals

Self-Diagnostics How the System Responds to Faults

The engine self-diagnostics check the mechanical If one or more actuators fails, the ECM will initially function of the cam adjustment actuators (changeover to attempt (several times) to change over to the other cam. the other cam lobe contour) and the system’s electrical If no adjustment is made, the cam elements that cannot connections. be adjusted remain in position. A system test is performed after the engine is started. All other cam elements are changed over to the large The ECM activates each actuator for this purpose. cam. They then remain in this position while the engine is running. The next time the engine is started, another Both configurations are tested and evaluated. This attempt is made to adjust all cam elements. system test is audible and is performed whenever the engine is started. System failure will result in corresponding DTC entries. Activation of the Warning Lamps Depending on the nature of the fault, the driver may notice a slight variation in engine idling speed or a Exhaust emissions do not deteriorate due to system different engine response under acceleration. failure and because virtually no adverse handling effects may result, neither Electronic Power Control Warning Lamp K132 nor Malfunction Indicator Lamp K83 is activated. However, corresponding DTC entries are generated.

Vehicle self-diagnostics 01 - Engine electronics 004.01 - Interrogate fault memory EV_ECM20AVS_X1 1 Fault detected

SAE code Text Status P11A100 Cam adjuster “A”, cylinder 1 active/ Electrical fault/open circuit static

Ambient conditions

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Oil Circulation System

Positive Crankcase Ventilation

One of the goals in designing this new engine was The following components were modified to achieve this to provide greater driver, passenger, and pedestrian goal: safety in the event of a collision. For instance, the more compact design of the components above the cylinder – Blow-by gas duct integrated in the cylinder crankcase head cover provides more clearance between the engine – Fine oil separator module with integrated pressure and hood. This translates to a larger crumple zone for the regulating valve, non-return valve and positive dissipation of energy upon impact. crankcase ventilation valve (PCV valve)

Valve Unit

Blow-By Line to Intake Manifold Blow-By Line to Exhaust (naturally aspirated mode) Turbocharger (charging mode) Non-Return Valves

Pressure Regulating Valve

PCV Combination Valve Diagnostic Channel

Cyclone Blow-By Duct in Cylinder Head and Cylinder Block Oil Return Line

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Oil Circulation System

Overview

Breather Module

Blow-By Inlet into the Intake Manifold (naturally aspirated Blow-By Inlet into the mode) Exhaust Turbocharger (charging mode)

Blow-By Duct in Cylinder Head and in Cylinder Block

Oil Return Duct in Cylinder Head, Cylinder Block and Oil Pan

Oil Return Non-Return Line Valve Oil Return Line Below Blow-By Gases the Dynamic from the Oil Level Cylinder Block

Reference The components are positioned differently, but have retained the same functions as on the 1.8L TFSI engine (base engine). For further information, refer to Self-Study Program 921703: Audi 2.0 Liter Chain- Driven TFSI Engine.

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Oil Circulation System

Overview

The oil circulation system of the 2.0L TFSI CAEB engine is The biggest difference between the two engines is unchanged from the CCTA/CBFA engine. the use of a new self-regulating oil pump on the CAEB engine.

Oil Pressure Regulation Valve N428

Self-Regulating Oil Pump

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Oil Circulation System

Self-Regulating Oil Pump Oil Pressure Regulation A newly developed self-regulating engine oil pump is Valve N428 used on the 2.0L TFSI CAEB engine. The main purpose of this development is to increase pump operating efficiency and in turn, reduce fuel consumption. When compared to other self-regulating oil pumps, this design has a more efficient control concept.

Drive Pump Pumped Oil Design Gear

With an external gear pump, the driven pump gear is axially displaceable in relation to the drive gear. This means that the driven gear can move and change the amount the gear lobes mesh with those of the drive gear under certain operating conditions. By displacing the driven pump gear, the delivery rate and pressure in the oil circulation system can be regulated in Driven Pump a controlled manner. Gear (axially displaceable)

Intake from the Oil Pan

Overview of the Components Pump Housing

Compression Input Shaft with Spring of the Drive Pump Gear Cam Lobe Unit

Control Check Piston Valve Cold Regulating Start Spring Driven Pump Valve Cam Gear (axially Lobe displaceable) Unit Final Drive Sprocket

Cover

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Oil Circulation System

Function

Conventional Method of Control

With a conventional oil pump, the delivery rate increases This is achieved by axial displacement of the cam lobe as the engine RPM increases. The oil consumers in the unit or in other words, by displacement of the oil pump engine cannot process the excess oil being delivered, so gears relative to one another. The delivery rate is highest the oil pressure increases. when both pump gears are aligned exactly opposite each other. The greater the axial displacement of the Previously, pressure limiting took place inside the driven pump gear, the lower its delivery rate will be (only pump. A mechanical valve opened for this purpose. oil displaced between the pump gears is conveyed). However, since the pump was still operating at its The pump gear is displaced by the incoming filtered maximum delivery rate, a portion of the input energy was oil pressure acting on the front piston face of the cam inefficiently converted to heat. lobe unit. A compression spring also acts upon the front The concept of the new control system involves piston face of the cam lobe unit. two different pressures. The low pressure setting is Filtered oil pressure is permanently applied to the rear approximately 26 psi (1.8 bar). The system changes to the piston face of the cam lobe unit. high pressure setting, approximately 48 psi (3.3 bar), at an engine speed of approximately 3500 rpm. A control piston applies oil pressure through the pressure port on the filtered oil side to the front piston face of The pressure is regulated by controlling the delivery rate the cam lobe unit. The engine oil pressure that has just of the pump gears. Oil delivery is controlled to produce been developed is used to counteract the force exerted exactly the required filtered oil pressure downstream of by the regulating spring. The application of oil pressure the oil cooler and oil filter. is a continuous and dynamic process. The control piston moves continuously in alternating linear directions.

Pumped Oil Overview Pressure Port on Driven Pump Filtered Gear (axially Oil Side displaceable) Oil Passage Oil Pressure to Front Regulation Piston Face Compression Valve N428 Spring of the Cam Lobe Unit Switchable Pressure Port on Filtered Oil Side

Pressure Port on Filtered Oil Side

Front Piston Face of Cam Lobe Unit

Drive Pump Gear on Input Shaft

Control Cam Piston Lobe Unit Rear Piston Face of the Cam Lobe Unit Oil Passage to Rear Return to Oil Pan Oil Passage Regulating Oil Passage Piston Face (pressure-less) to Front Spring to Rear Piston Face Piston Face Low Oil Pressure High Oil Pressure

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Oil Circulation System

Positions of the Cam Lobe Unit

No axial displacement: maximum oil flow rate Maximum axial displacement: low oil flow rate

Engine Start-Up

The illustration below shows how the oil pump functions The cam lobe unit remains in this position. The pump when the engine is started. Engine oil passes through operates at maximum output until the low pressure the pressure port on the filtered oil side and impinges on setting is reached (approximately 26 psi [1.8 bar]). A lower all surfaces of the control piston while flowing to both value is also possible when the engine is idling. However, sides of the cam lobe unit. Oil Pressure Regulation Valve an excessively low value would cause irreparable damage N428 is activated by the ECM and holds the switchable to the engine. Therefore, the oil pressure must be pressure port open so that oil pressure is applied to all monitored, in this case by Reduced Oil Pressure Switch surfaces of the control piston. F378.

Pressure Port Engine Relative Oil Pumped on Filtered Speed [rpm] Pressure [bar] Oil Oil Side

Driven Oil Pressure Pump Gear Regulation (is displaced Valve N428 Compression axially) Spring of the Cam Lobe Unit

Oil Passage to Front Piston Face is Closed

Rear Piston Face of Cam Lobe Unit Oil Passage to Rear Piston Face Control Piston is Regulating Oil Passage Pushed Against the Spring to Rear Regulating Spring Piston Face

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Oil Circulation System

Low Pressure Setting Reached

If engine speed increases, the oil pressure increases As a result, the cam lobe unit moves against the force slightly and displaces the control piston against the force of the compression spring. The driven pump gear is of the regulating spring. The pressure port to the front displaced axially relative to the drive pump gear. The piston face of the cam lobe unit closes. volumetric flow rate decreases and adjusts to the engine’s oil consumption. By adjusting the volumetric At the same time, the connection to the pressureless flow rate, the oil pressure is kept at a relatively constant return line leading into the oil pan opens. The hydraulic level. force exerted by the rear piston face of the cam lobe unit is now greater than the spring force.

Engine Relative Oil Speed [rpm] Pressure [bar] Pumped Pressure Port Driven Oil Pump Gear on Filtered (is displaced Oil Side Compression axially) Spring of the Cam Lobe Unit

Oil Passage to Front Piston Face is Closed

Cam Lobe Unit is Displaced Oil Passage Rear Piston Face to Rear of Cam Lobe Unit Piston Face Control Piston is Regulating Oil Passage Pushed Against the Spring to Rear Regulating Spring Piston Face

Shortly Before Change-Over to the High Pressure Setting

The cam lobe unit is fully extended.

Engine Relative Oil Speed [rpm] Pressure [bar]

Cam Lobe Unit

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Oil Circulation System

Change-Over Point to High Pressure Setting

The system changes over to the high pressure setting at The oil pressure acting upon the front piston face and the an engine speed of approximately 3500 rpm. Oil Pressure compression spring push the cam lobe unit back again, Regulating Valve N428 is de-energized for this. so that both pump gears are again almost in parallel with one another and the pump is operating at its maximum This simultaneously causes the switchable pressure port delivery rate. The cam lobe unit remains in this position and the port to the pressureless chamber in the oil pan to until an oil pressure of approximately 47 psi (3.3 bar) is close. reached. Since the surface of the control piston is no longer effective, the force of the regulating spring is now predominant. The control piston moves far enough to open the port to the front piston face of the cam lobe unit.

Engine Relative Oil Speed [rpm] Pressure [bar] Pumped Oil

Oil Pressure Regulation Valve N428

Switchable Pressure Oil Passage to Port (now Front Piston pressureless) Face is Opened

Cam Lobe Unit is Displaced Back

Control Piston Regulating is Displaced Spring

Note The self-regulating oil pump always operates in the high pressure setting during the first 620 mi (1000 km). This allows for the higher thermal load on components during the break-in period.

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Oil Circulation System

High Pressure Setting is Reached

Oil Pressure Regulation Valve N428 remains de-energized. As engine speed increases, the cam lobe unit again The force equilibrium between the control piston and begins to move (as in the low pressure setting). The regulating spring is maintained by the higher oil pressure change-over to the high pressure setting is registered by (the effective piston surface area is smaller). O.3 Bar Oil Pressure Switch F22 (on the oil filter module). In the high pressure setting, the switchable oil passage is kept closed by Oil Pressure Regulation Valve N428.

Engine Relative Oil Pumped Speed [rpm] Pressure [bar] Oil Oil Pressure Regulation Valve N428

Switchable Pressure Port (now pressure-less)

Cam Lobe Unit

Control Regulating Piston Spring

Engine Relative Oil Cam Lobe Unit Speed [rpm] Pressure [bar]

Cam Lobe Unit

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Oil Circulation System

Oil Pressure Switch

One or two oil pressure switches are used, depending upon whether the engine is equipped with a self- regulating oil pump. Oil pressure switches are generally mounted on the oil filter module.

Example: Comparison of Pressure Characteristics

73 (5)

58 (4)

44 (3)

29 (2) Relative Oil Pressure (psi / bar) Oil Temperature at 158°F (70°C)

14.5 (1) 1000 2000 3000400050006000 7000 Engine speed [rpm]

Oil Pressure of 1.8L MPI Turbocharged Engine Pressure Requirements of 1.8L TFSI Engine (without self-regulating oil pump) Oil Pressure of 1.8L TFSI Engine (self-regulating) Oil Pressure of 1.8L TFSI Engine (transversely mounted, without self-regulating 1 Low Pressure Setting oil pump) 2 High Pressure Setting

Engine Without Self-Regulating Oil Pump Engine With Self-Regulating Oil Pump

Only Oil Pressure Switch F22 is used on engines not The self-regulating oil pump uses two oil pressure equipped with a self-regulating oil pump. However, this switches — F22 and Reduced Oil Pressure Switch F378. switch has a different part number (different oil pressures F378 is located above Oil Pressure Switch F22. are measured).

Reduced Oil Pressure Switch F378 (0.7 bar) Oil Pressure Switch F22 (1.4 bar)

Oil Pressure Switch F22 (2.55 bar)

Reference For information on the design of the oil filter module, please refer to Self-Study Program 921703 Audi 2.0 Liter Chain-Driven TFSI Engine.

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Oil Circulation System

Oil Pressure Monitoring

On engines with a self-regulating oil pump, oil pressure is monitored by two oil pressure switches. This is necessary because two different oil pressures are used. Convenience CAN Convenience

Instrument Cluster CAN Powertrain CAN

Legend

1 Warning bit “red oil can” F22 Oil Pressure Switch 2 2 text bits F378 Reduced Oil Pressure Switch 3 Change-over bit = 1 J285 Instrument Cluster Control Module 4 Switch bit J519 Vehicle Electrical System Control Module 5 Signal from Oil Pressure Switch F22 J533 Data Bus On-Board Diagnostic Interface 6 Signal from Reduced Oil Pressure Switch F378 J623 Engine Control Module (ECM)

Functions and Signals of the Oil Signals Generated by the Oil Pressure Pressure Switch Switches

The two oil pressure switches serve to monitor the oil Both oil pressure switches are evaluated by the ECM. pressure. Reduced Oil Pressure Switch F378, which is Earlier versions used a single-stage oil pump and the oil connected directly to the ECM, checks for the presence of pressure switch was read and evaluated by Instrument oil pressure. Cluster Control Module J285. Oil Pressure Switch F22 monitors the high-pressure Oil Pressure Switch F22 of the 2009 Audi A4 is read level of the self-regulating oil pump, provided that it is by Onboard Power Supply Control Module J519 and operating in the high pressure setting. made available to Engine Control Module J623 via the powertrain CAN data bus. The oil pressure switches are normally-open contacts, connecting to ground as soon as the required oil pressure is developed.

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Oil Circulation System

Oil Pressure Monitoring

In the ECM, oil pressure switches are monitored at engine ON and validated at engine OFF.

Validation at Engine OFF

There should NOT be a signal from a closed oil pressure switch when the engine is switched OFF. If there is, an electrical fault has occurred. At terminal 15 ON, a warning is indicated in the Driver Information System display (“red oil can” together with the fault text “Shut off engine and check oil level”).

Warning at Engine ON Fault Analysis Options

Oil pressure switches are monitored above a defined A diagnosis is made in the ECM by the oil pressure engine speed threshold, dependent on oil temperature. monitoring function. The oil pressure switches are generally monitored The status of Oil Pressure Switch F22 can be viewed when the engine is cold (up to 140°F [60°C]) and when under Address Word 09, MVB 28 using a VAS Scan Tool. the engine is idling. When the engine is at operating temperature, oil pressure switches are only monitored at high engine speeds. If a switch is not closed, the warning “red oil can” is indicated together with the fault text “Shut off engine and check oil level” in the Driver Information System display. Note Oil Pressure Switch F22 is monitored as soon as the self- Text messages are only displayed for regulating oil pump is operating in the high pressure “Validation at engine OFF” and “Warning setting and engine speed exceeds a value computed from at engine ON” in vehicles with a Highline the characteristic map (dependent on oil temperature). instrument cluster. If the switch is identified as being “not closed,” Engine Electronics Indicator Lamp K149 is activated. Engine speed is limited as well. Engine speed is indicated in the instrument cluster as text and a yellow engine speed symbol.

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SULEV 2 0L. TFSI Engine

Introduction

With the introduction of the 2.0L CAEB engine, Audi To homologate a vehicle for the North American market, was able to combine direct fuel injection, AVS, and the following conditions must be met: turbocharging while still meeting the stringent ULEV II exhaust emission limits. – Compliance with statutory exhaust emission limits – No hydrocarbon emission from the fuel system However, some states require the even more stringent SULEV exhaust emission standards. – All exhaust-related systems and components monitored to OBD II requirements The measures undertaken to comply with the SULEV exhaust emission regulations will be explained in detail – Compliance with SULEV exhaust emission limits on the following pages. The technical descriptions refer ensured over 150,000 miles (240,000 km) and 15 years to the Audi A3.

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Secondary Air System

To reduce hydrocarbon emissions at the earliest possible If the system is functional, an excess pressure of stage, fresh air is blown into the cylinder head exhaust approximately 2.3 psi (160 mbar) will be achieved in ports during the engine start phase. the pressure line while the engine is idling after a cold start. Pressure acting on the sender increases with The system is designed to rapidly develop pressure and rising exhaust gas mass flow, depending on how the car achieve a high delivery rate on activation. is driven (high engine load). Pressure levels of greater The illustration below shows the components of the than 2.9 psi (200 mbar) above ambient pressure can be secondary air system. The following components are new achieved. to the system: There is an elongated hole in the cylinder head below – Secondary Air Injection Sensor 1 G609 the exhaust ports. Secondary air which flows through an elongated hole is drawn directly into the exhaust ports. – Secondary Air Injection Solenoid Valve N112 The proximity of exhaust ports to the exhaust valves is advantageous. The secondary air pump is positioned above the lowest A secondary air reaction occurs immediately, generating point of the pressure line system to prevent harmful the thermal energy required to heat the catalytic condensation from collecting in the pump. converter.

Overview of the Components

Intake Line from Air Filter

Pressure Line Secondary Air Bore in the Cylinder Head

Secondary Air Injection Pump Motor V101

Secondary Secondary Air Injection Air Injection Solenoid Sensor 1 G609 Valve N112

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Secondary Air Injection Solenoid Valve N112

Unlike earlier valves, the newly developed Secondary Air Injection Solenoid Valve N112 operates electrically. It is Electrical Connection mounted directly to the cylinder head by bolts. When compared to the pneumatic valves used previously, the secondary air intake valve is extremely rugged. The valve also has a non-return function which prevents exhaust gases from flowing back into the secondary air system, even when the valve is open (illustration at right).

Branch Connecting to Cylinder Head

From Air Filter

Valve Activated

When N112 is activated by the ECM, secondary air flows through the valve to the cylinder head. A solenoid lifts the closing element off the valve plate. Closing Secondary air flows through the orifices in the valve Armature Element plate.

Coil Valve Plate To Cylinder Head

Non-Return Function

When secondary air flows through the valve, the non- return element is pressed down and against a spring, holding the valve open. Non-Return If exhaust gases flow back into the secondary air intake Element Closing valve, secondary air pressure will decrease. Element As a result, the non-return element lifts off the closing element with spring assistance and seals the orifices in the valve plate. In this way, secondary Air Injection Valve and Secondary Air Injection Pump Motor V101 are protected against possible damage by hot exhaust gases.

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SULEV 2 .0L TFSI Engine

Secondary Air Injection Sensor 1 G609

Secondary Air Injection Sensor 1 G609 connects to the pressure line coupling upstream of Secondary Air Injection Valve N112. It supplies the ECM with an analog output signal of between 0.5 and 4.5 V. Its measurement window is between 7 and 22 psi (50 kPa – 150 kPa).

Signal Utilization

This signal is used for diagnosing the secondary air system. Because the system is relevant to exhaust emissions, legislation requires that it be monitored.

Effects of Signal Failure Diagnostics

A diagnosis is made for the sensor and used to monitor If Secondary Air Injection Valve N112 remains closed due voltage (min-max threshold), and to match ambient to a malfunction, the resulting pressure will be too high. pressure and the secondary air pressure sensor (phase 0). Conversely, the pressure will be too low if a leak occurs in the system upstream of the secondary air injection valve. If a fault occurs in a sensor, the system diagnosis result will not be evaluated because the sensor signal will be In both cases, the corresponding fault memory entries implausible. However, a diagnosis will still be made. are saved to the ECM, and Malfunction Indicator Lamp (MIL) K83 is activated.

Signal Characteristic of the Secondary Air Pressure Sensor

5.00

4.50

4.00 [V]

A 3.50

3.00

2.50

2.00 Signal Output Voltage U

1.50

1.00

0.50

6.0 (40) 7.2 (50) 8.7 (60) 10.1 (70) 11.6 (80) 13.0 (90) 14.5 (100) 15.9 (110) 17.4 (120) 18.8 (130) 20.3 (140) 21.7 (150) 23.2 (160) 24.6 (170)

Absolute Pressure pabs psi (kPa)

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Testing the System Pressure-Based Secondary Air Diagnosis Process The California Air Resources Board (CARB) requires that the secondary air system be monitored during the heat- Phase 0 up phase of the catalytic converter. The control module initialization process begins at Previously, the system was monitored using the oxygen “ignition on.” The signal from Secondary Air Injection sensor. However, this downstream sensor does not Sensor 1 G609 is stored and compared to the signals become available quickly enough. For this reason, the received from the ambient pressure sensor and the intake system is monitored and evaluated for pressure-based manifold pressure sensor. secondary air diagnosis by Secondary Air Injection Sensor 1 G609. Phase 1 When the secondary air mass is injected, the pressure within the secondary air system also rises to above atmospheric pressure. This pressure increase is determined by G609. The resulting analog signal is evaluated by the ECM. If the signal exceeds the pre- defined limit, for example due to a blockage in the system or leakage, a DTC entry will be generated. Engine Electronics Indicator Lamp K149 will also be activated. If Reference the system is still in order, the diagnosis procedure will On the next page you will find a diagram be continued. showing the individual phases of the Phase 2 secondary air diagnosis process. During this phase, Secondary Air Injection Valve N112 is closed and checked for leaks. The value determined by Secondary Air Injection Sensor 1 G609 is evaluated for this purpose. Phase 3 The secondary air pump is shut OFF and Secondary Air Injection Valve N112 closed. The difference between the actual measured pressure and the stored value generated in phase 0 is evaluated. A faulty Secondary Air Injection Pump (pump does not shut off) or a faulty Secondary Air Injection Sensor 1 G609 can thus be detected.

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Phases of the Secondary Air Diagnosis Process

1 3 Pressure Difference Pressure 4

2

5 Phase Time

0 1 2 3

6

7

1 Blockage (restricted flow) 4 Faulty Pressure Sensor

2 Reduced Pumping Capacity or a 5 Faulty Pressure Sensor Blockage Upstream of Secondary Air Injection Sensor 1 G609 6 Secondary Air Pump Running

Secondary Air Pump Running 3 7 Combination Valve 1 Open (does not shut OFF)

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Exhaust Turbocharger

The turbocharger used on SULEV emission level engines Both air flow and catalytic converter inflow have been is made of cast steel, and not cast iron. Cast steel greatly improved, reducing the exhaust gas back- provides excellent long-term stability. In addition, the pressure upstream of the turbine. Reduced back-pressure components heat up more quickly after engine start-up means less possibility of turbo-lag while also increasing because they have thinner walls. fuel economy. Cast steel also allows the oxygen sensor to be positioned inside the turbine housing. This is necessary to ensure the rapid availability of the sensor.

Configuration Heated Oxygen Sensor G39 Upstream of Primary Catalytic Converter (broadband oxygen sensor in the Cast Steel integral module) Integral Module

Wastegate

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Catalytic Converter System

The exhaust system was developed with the following The primary catalytic converter is designed to comply goals in mind: with statutory emission limits. To achieve this, cell density has been increased and wall thickness reduced. – Easy compliance with SULEV exhaust emission limits To minimize light-off time of the primary catalytic – High long-term stability over 150,000 miles (240,000 converter, it is close coupled to the exhaust turbocharger km) and 15 years turbine (directly in the integral module). – Minimized increase in exhaust back-pressure in catalytic converters with a high cell density – Reduced light-off time

Overview of the Components

Integral Module

Heated Oxygen Sensor G39 Upstream of Primary Catalytic Converter (broadband oxygen sensor in the integral module)

Close-Coupled Ceramic Primary Catalytic Converter

Oxygen Sensor G130 Upstream of Catalytic Converter (nonlinear lambda sensor upstream of underbody catalytic converter)

Exhaust Decoupling Element Oxygen Sensor G287 Downstream of Catalytic Converter (nonlinear lambda sensor downstream of underbody catalytic converter)

Ceramic Underbody Catalytic Converter

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Oxygen Sensors

The oxygen sensors were designed to minimize the G39 is located upstream of the primary catalytic time-to-readiness for the closed-loop operation engine converter. This sensor has an additional triple-layer management system. protective tube. By installing the broadband oxygen sensor in the turbine Two type LSU4.2 nonlinear oxygen sensors are used housing, closed-loop operation can begin only 19 upstream and downstream of the underbody catalytic seconds after starting the engine. converter. They facilitate natural frequency-based closed- loop operation, and allow the primary and underbody Due to the risk of water shock during the broadband catalytic converters to be diagnosed for aging separately. oxygen sensor’s rapid rate of heating, a special sensor, Oxygen Sensor G39 (LSU4.9), is used here.

Design of Heated Oxygen Sensor G39 (LSU4 .9)

Hexagonal Housing

Inner Protective Tube

Middle Protective Tube

Outer Protective Tube

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Natural Frequency Based Oxygen Sensor Control

Task The task of this system is to maximize utilization of the The mixture is then leaned out by the ECM. If the primary catalytic converter during the conversion of nonlinear signal is received again, the mixture will pollutant gases. again be enriched. The frequency, or period, during which the mixture is enriched or leaned out is variable, Function being dependent on the gas flow rate (engine load) at Oxygen Sensor G130 LSF4.2 downstream of the primary that moment. However, aging of the catalytic converter catalytic converter supplies the ECM with a voltage signal (decrease in conversion rate) also reduces the frequency. (nonlinear) indicating “rich” or “lean.” A large proportion of the exhaust gases is converted in Heated Oxygen Sensor G39 LSU4.9 determines a the primary catalytic converter. The remaining exhaust frequency from the flow rate and the condition of the gas constituents are then converted to non-toxic gases catalytic converter. The ECM provides this frequency with by the underbody catalytic converter. an amplitude indicating whether the mixture is to be Oxygen Sensor 3 Behind Three Way Catalytic Converter “rich” or “lean.” G287 (downstream of underbody catalytic converter) If the primary catalytic converter is supersaturated with operates in much the same way as a conventional linear oxygen (lean mixture), Oxygen Sensor G130 will send oxygen sensor. the ECM a nonlinear signal indicating the lean mixture Its task is to control the fine adjustment of Heated condition. Oxygen Sensor G39. For this purpose, the characteristic The mixture is then enriched with fuel until the oxygen curve is corrected by the trimming control in the ECM. has been “displaced” from the catalytic converter. This It also monitors the conversion process in the catalytic condition, in turn, is registered by Oxygen Sensor G130 as converters. a nonlinear signal indicating the rich mixture condition.

Reference For basic information on exhaust emissions and engine management systems, please refer to Self-Study Programs 943003 Motor Vehicle Exhaust Emissions and 941003 Engine Management Systems.

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Signal Characteristics of the Oxygen Sensors

0.65 Voltage in V in Voltage

0.70

0.50 Voltage in V in Voltage 0.30

1.02

Lambda 0.98

106 108 110 112 114 116118 120 122

Time t in s

Oxygen Sensor 3 Behind Three Way Catalytic Converter G287

Oxygen Sensor Behind Three Way Catalytic Converter G130

Heated Oxygen Sensor G39 (before primary catalytic converter)

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Automatic Starter Control in the Audi A3

To ensure that the Audi A3 easily achieves SULEV exhaust Starting Sequence emission limits, an automatic starter control system is (refer to diagram on next page) used. The ECM does not allow fuel to be injected into the To activate the starter motor, both signal lines (1) and (2) combustion chamber until a pressure of at least 870 are pulled to ground by the ECM. One of the two lines psi (60 bar) is measured in the fuel rail at start-up. This is pulled to ground for approximately three seconds for pressure is necessary to keep raw hydrocarbon emissions diagnostic purposes. The other line is always diagnosed to an absolute minimum. when the engine is started. The complete starting cycle is performed automatically After completion of the power-off diagnostics, both lines after briefly turning the ignition key to the start position. are diagnosed continuously by means of pulses with a short duration of only a few milliseconds. This results in a mean voltage level of approximately 3 to 9 volts. Requirements for Starting When line (1) is pulled to ground, battery voltage will again be present at the line (3), causing Power Supply On vehicles with manual transmissions, the starter motor Relay Terminal 50, J682 to close. Likewise for diagnostic will only engage when the clutch pedal is fully depressed. purposes, the actual circuit status of the J682 load output On vehicles with automatic transmission, the selector is fed back across the diagnostic line (4) to the ECM and lever must be in position “P” or “N,” in addition to a short Vehicle Electrical System Control Module J519. press on the brake pedal. Because the starter motor has high inductance, it takes up to approximately three seconds after the opening of Power Supply Relay J682 until the ground signal is restored on the diagnostic line (4).

Effects of Failure

If a fault relevant to starting is entered in memory, only one manual start will be performed as a substitute response. The starter will only be activated as long as the ignition key is turned to the start position and held there.

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Function Diagram

Powertrain CAN

Convenience CAN

Legend

A Battery 1 Start enable signal: is pulled to ground by the ECM when a start request is received B Starter 2 Ground connected signal from ECM D Ignition/Starter Switch 3 Connected terminal 30 J519 Vehicle Electrical System Control Module 4 Diagnostic line J527 Steering Column Electronic Systems Control Module J533 Data Bus On Board Diagnostic Interface S Fuse

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Operating Modes

After cold-starting the engine, various operating modes and fuel injection strategies are implemented:

– Stratified start (high-pressure fuel injection) – Catalyst heating by homogeneous split dual injection, in conjunction with secondary air injection – Dual injection during the engine warm-up phase

Stratified Start (high-pressure fuel injection)

When the rail pressure exceeds 60 bar (absolute) the injection enable signal is issued by the ECM. This occurs when the full starting fuel charge is injected during the compression phase until 60° crankshaft angle before ignition TDC.

At this stage in the process, both cylinder pressure and [%] Quantity Fuel temperature are already considerably elevated, enabling the injected fuel to evaporate more efficiently. Ingress of raw fuel into the combustion chamber is considerably reduced. The resulting, minimal fuel film on the cylinder walls is necessary to ensure extremely low raw hydrocarbon emissions at engine start-up. Crankshaft Angle [°] A richer mixture forms in proximity to the spark plug, thereby creating more stable ignition conditions. 1 Charge Cycle TDC 3 Ignition TDC

2 BDC

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Catalyst Heating with Dual Injection and Secondary Air Injection

To achieve good idling quality, a special characteristic map has been selected. In this map the following parameters relevant to exhaust emissions have been adapted:

– Fuel rail pressure – Injection timing of first injection during the intake phase

– Injection timing of second injection during the [%] Quantity Fuel compression phase – Fuel split during first and second injections (approximately 70% during first injection) – Intake camshaft adjustment – Position of the intake manifold flaps (open/closed)

– Ignition angle adjustment towards retard (up to 21° Crankshaft Angle [°] after TDC) – Combustion chamber air ratio 1 Charge Cycle TDC 3 Ignition TDC

By using the secondary air system, exhaust gas 2 BDC temperature has been increased while reducing hydrocarbon emissions.

Dual Injection During the Engine Warm-Up Phase

The catalytic converter heat-up phase is followed by the engine warm-up phase, where one dual injection is performed per working cycle. The main part of the fuel charge (approximately 80%) is injected synchronous with the intake cycle, and the remainder (approximately 20%) during the compression phase. During the engine warm-up phase, dual injection is performed within the mapped range at engine speeds of less than 3000 rpm. At the same time, the intake manifold flaps are closed to increase flow intensity. The advantage of this operating mode is that considerably less fuel is deposited on the cylinder walls due to the low penetration depth of the fuel during second injection when the engine is still not fully warmed up. Raw hydrocarbon emissions are lower, and entrainment of fuel into the engine oil is kept to a minimum.

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Compliance with Statutory Limits (PremAir®)

When evaluating the environmental compatibility of For this reason, a radiator with a special catalytic coating vehicles, the EPA awards “credits” for technical measures is used on the Audi A3. designed to improve air quality. These credits can be This PremAir® technology* contributes to improving air used to offset fleet emissions that are over the limit. quality. In exchange, the California Air Resources Board allows a higher NMOG* limit.

*NMOG This abbreviation stands for “Non Methane Organic Gases” and encompasses all hydrocarbon emissions except methane.

Overview of the Components

Catalytically Coated Car Radiator

Radiator Identification Sensor G611 (PremAir® sensor)

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Function

The entire cooling surface of the car’s radiator is coated This ozone catalyst technology is also used on aircraft, with catalytic material. where it prevents stratospheric ozone from entering the cabin through the air conditioning system. The same When air flows through this specially coated radiator, the technology is used in printers and copiers. ozone in the air is converted to oxygen (chemical symbol O2). Ozone (chemical symbol O3) is a gas which is harmful To receive EPA “credits” however, the Air Resources Board to health. (ARB) requires not only a PremAir® radiator installed on the vehicle, but also a monitoring system that ensures its Given that the air in a car radiator can flow at up to two proper function and reliability at all times. kilograms per second, a car with a PremAir® radiator makes a significant contribution to reducing near- Therefore, this special radiator is monitored by Radiator surface ozone levels. The efficiency of this technology Identification Sensor G611. is particularly high in strong sunlight and at high air pollution levels.

Treated Air with Reduced Ozone Content

Incoming Ambient Air Containing Ozone

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Radiator Identification Sensor G611

Mounting Base Requirements for Sensor Spigot in Radiator The purpose of Radiator Identification Sensor G611 is to prevent:

– PremAir® radiator from being removed and replaced with a non-PremAir® radiator – G611 from being removed for the purpose of reproducing the electronics or software

– G611 from being extensively cut out of the radiator Radiator and installed “elsewhere” Identification Sensor G611 (PremAir® sensor) The requirements relating to Radiator Identification Sensor G611 are met as follows. Corrugated Cable To check for the presence of the radiator, pre-determined Protection Tube distinguishing features (IDs) are stored in the ECM and in G611, and exchanged electronically. Information is exchanged via LIN bus according to the master-slave principle. This means that Radiator Identification Sensor G611 is interrogated by the ECM. The IDs are transmitted in an encrypted form after the engine is started. If the codes no longer match (for example, due to tampering), a fault will be indicated. Circuit Diagram

Integrated Temperature Sensor

A temperature sensor (NTC, Negative Temperature Coefficient) measures the temperature at the point of installation. This temperature is compared in the ECM with the temperature from Engine Coolant Temperature Sensor G62. The measured temperatures are transmitted to the ECM via LIN bus. In the ECM, the values are compared with a characteristic map and evaluated. The temperature sensor is located in a specially shaped spigot on the sensor housing. During assembly, the sensor is bonded directly to a mounting base on the radiator. The temperature sensor is made of cast polyurethane resin and is non-removable once attached. If, however, an attempt is made to remove the temperature sensor, the sensor spigot will break away from the housing causing it to become irreparably damaged, both electrically and mechanically. Legend This is a safeguard to ensure that all attempts at G611 Radiator Identification Sensor tampering will be detected. In the event of misuse, Malfunction Indicator Light K83 will be activated. In this J623 Engine Control Module (ECM) case, both the radiator and Radiator Identification Sensor Term 87 Main Relay, 12 Volt Power Supply G611 must be replaced. S Fuse Positive Ground LIN bus 1,2,3 Pins on Control Unit

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Temperature Sensor Diagnostics

The temperature sensor is diagnosed in Engine Control Module J623 only. To prevent tampering, no tests can be performed using the VAS Scan Tool. Furthermore, the temperature signal is not transmitted as a voltage value, but as a LIN message. Before the ECM can diagnose the temperature sensor, several enabling conditions must be met. The values are then checked in multiple measurement windows.

Enabling Conditions of the Diagnostics

– Engine temperature greater than 207.5°F (97.5°C) (so thermostat is open) – There is a 360-second time delay after the engine temperature exceeds 207.7°F (97.5°C) to ensure maximum flow through the radiator

Measurement Window is Active if:

– Engine has been idling for longer than 25 seconds – Engine is then accelerated to part throttle or wide- open throttle within eight seconds — intake camshaft adjustment – Measurement window is then active for 10 seconds in order to measure the temperature curves (gradients)

Three Measurement Windows are Required to Decide Whether the System is Operating Properly

Additional conditions for diagnosis:

– Diagnostics are disabled for 45 seconds at radiator fan ON/OFF or OFF/ON – Ambient temperature greater than 48°F (9°C)

The temperature sensor cannot be tested by reading out a measured value. If the ECM detects a fault, the following fault memory entries are possible:

– P2568 implausible signal – P2569 short circuit to ground – P2570 short circuit to battery/open circuit – U102E LIN message incorrect (implausible signal) – U102F timeout (no communication) – U1030 LIN bus inactive

Note The diagnostic strategy described in this SSP will be replaced by a new strategy in the course of ongoing development from model year 2011 onward.

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Service

Special Tools

Here you can see the special tools for the 4-cylinder TFSI engines.

T40191/1 (narrow) and T40191/2 (wide) spacers T40196 adaptor for moving the for locating the AVS spline ends on the camshaft AVS spline ends on the camshaft

T10352 assembly tool for removing and installing T10394 puller for removing the balancer shaft the inlet camshaft timing adjustment valve. in conjunction with special tool T10133/3 The “/1” tool has offset stud bolts. It is used upwards of a defined engine version.

45 Case 2:16-cv-02765-JLL-JAD Document 6-4 Filed 08/22/16 Page 51 of 56 PageID: 721

EA 888 Engine Development

Overview of the Development Stages Engine Stage 0

1.8L Longitudinal Engine

1.8L EC: BYT SOP: 01/2007 EOP: 06/2007 EU IV

Initial Rollout of the EA888 Engine Series

2.0L Longitudinal Engine

2.0L Transverse Engine

You will find explanatory notes on the abbreviations used in this table on page 48.

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EA 888 Engine Development

Stage 1 Stage 2

EC: CABA SOP: 02/2008 EOP: 09/2008 EU IV EC: CDHA SOP: 09/2008 EOP: – / – EU V

EC: CABB SOP: 07/2007 EOP: 05/2008 EU IV EC: CDHB SOP: 06/2008 EOP: – / – EU V

EC: CABD SOP: 10/2007 EOP: 11/2008 EU IV

Modifications to Stage 0 (1.8L Transverse Engine): Modifications to Stage 1: –Positive Crankcase Ventilation –Main Bearing Diameter Reduced from 58 to 52 mm – Self-Regulating Oil Pump – Modified Piston – Modified Piston Rings –Different Honing Process – Ixetic Vacuum Pump

EC: BZB SOP: 06/2007 EOP: 06/2008 EU IV EC: CDAA SOP: 05/2008 EOP: – / – EU V

Modification to Stage 0: Modifications to Stage 1: –Positive Crankcase Ventilation – Diameter of Main Bearing Reduced from 58 to 52 mm – Modified Piston – Modified Piston Rings –Different Honing Process –Self-Regulating Oil Pump – Ixetic Vacuum Pump –Fuel Supply Line (routing) –Turbocharger Control Rod in Accordance with EA113

EC: CDNA SOP: 22/2009 EOP: – / – EU II – V

EC: CDNB SOP: 06/2008 EOP: – / – EU V

EC: CDNC SOP: 06/2008 EOP: – / – EU V

EC: CAEA SOP: 01/2009 EOP: – / – ULEV II

EC: CAEB SOP: 08/2008 EOP: – / – ULEV II

Modifications to Stage 1 (1.8L Longitudinal Engine): –Audi Valvelift System (AVS) – Modified Piston – Modified Piston Rings –Different Honing Process – Ixetic Vacuum Pump –Hitachi Generation III High-Pressure Fuel Pump –New Air Mass Meter

EC: CAWB SOP: 11/2007 EOP: 05/2008 EU IV EC: CCZA SOP: 05/2008 EOP: – / – EU V

EC: CBFA SOP: 02/2008 EOP: 05/2009 PZEV, SULEV EC: CCXA SOP: 05/2009 EOP: – / – BIN 5/ULEV II

EC: CCTA SOP: 05/2009 EOP: 05/2009 BIN 5, ULEV II

Modification to Stage 0 (1.8L Transverse Engine): Modifications to Stage 1: –Positive Crankcase Ventilation – Modified Piston – Modified Piston Rings –Different Honing Process –Self-Regulating Oil Pump – Ixetic Vacuum Pump –Hitachi Generation III High-Pressure Fuel Pump –Fuel Supply Line (routing) –New Air Mass Meter

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EA 888 Engine Development

Technical Features

Technical Features of the 4-Cylinder TFSI Engines

Engine 1.8L TFSI 1.8L TFSI 1.8L TFSI

Engine Codes CDHA, CABA BYT, BZB CDAA, CABB, CDHB

Displacement in cm3 1789 1789 1789

Max. Power in kW @ rpm 88 @ 3650 – 6200 118 @ 5000 – 6200 118 at 4500 – 6200

Max. Torque in kW @ rpm 230 @ 1500 – 3650 250 @ 1500 – 4200 250 at 1500 – 4500

Bore in mm 82.5 82.5 82.5

Stroke in mm 84.1 84.1 84.1

Compression Ratio 9.6 : 1 9.6 : 1 9.6 : 1

Fuel in RON 95/91* 95/91* 95/91*

Injection/Ignition System FSI FSI FSI

Firing Order 1–3–4–2 1–3–4–2 1–3–4–2

Knock Control Yes Yes Yes

Charging Yes Yes Yes

Exhaust Gas Recirculation No No No

Intake Manifold Change-Over No No No

Variable Valve Timing Yes Yes Yes

Secondary Air System No No No

Audi Valve Lift System (AVS) No No No

Self-Regulating Oil Pump Yes No Yes

Intake Manifold Flaps Yes Yes Yes

*Unleaded RON 91 petrol may also be used with a slight reduction in engine power **The engine develops 130 kW, but all other parameters are identical

Abbreviations used in the table: EC Engine Code SOP Start of Production EOP End of Production EA113 Engine series 1.8l MPI

Exhaust emission standards: EU IV, EU V, BIN 5, PZEV, SULEV, ULEV II

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EA 888 Engine Development

1.8L TFSI 2.0L TFSI 2.0L TFSI 2.0L TFSI 2.0L TFSI

CABD CAEA, CDNB, (CDNA)** CAWB, CBFA CCTA, CCZA CAEB, CDNC

1789 1984 1984 1984 1984

125 @ 4800 – 6200 132 @ 4000 – 6000 147 @ 5100 – 6000 147 @ 5100 – 6000 155 @ 4300 – 6000

250 @ 1500 – 4800 320 @ 1500 – 3900 280 @ 1700 – 5000 280 @ 1700 – 5000 350 @ 1500 – 4200

82.5 82.5 82.5 82.5 82.5

84.1 92.8 92.8 92.8 92.8

9.6 : 1 9.6 : 1 9.6 : 1 9.6 : 1 9.6 : 1

95/91* minimum 95 95/91* 95/91* minimum 95

FSI FSI FSI FSI FSI

1–3–4–2 1–3–4–2 1–3–4–2 1–3–4–2 1–3–4–2

Yes Yes Yes Yes Yes

Yes Yes Yes Yes Yes

No No No No no

No No No No no

Yes Yes Yes Yes Yes

No No Yes (CBFA only) No no

No Yes No No Yes

Yes Yes No Yes (CCZA only) Yes

Yes Yes Yes Yes Yes

49 Case 2:16-cv-02765-JLL-JAD Document 6-4 Filed 08/22/16 Page 55 of 56 PageID: 725

Notes

50 Case 2:16-cv-02765-JLL-JAD Document 6-4 Filed 08/22/16 Page 56 of 56 PageID: 726

Knowledge Assessment

An on-line Knowledge Assessment (exam) is available for this Self-Study Program. The Knowledge Assessment may or may not be required for Certification. You can find this Knowledge Assessment at:

www.accessaudi.com

From the accessaudi.com Homepage: – Click on the “ACADEMY” tab – Click on the “Academy Site” link – Click on the “CRC/Certification” link – Click on Course Catalog and select “922903 — Audi 2.0L 4-Valve TFSI Engine with AVS”

For assistance please call:

Audi Academy Certification Resource Center (CRC) 1-877-283-4562 (8:00 a.m. to 8:00 p.m. EST) Or you may send an email to:

[email protected]

51 Case 2:16-cv-02765-JLL-JAD Document 6-5 Filed 08/22/16 Page 1 of 2 PageID: 727 EXHIBIT E

Case 2:16-cv-02765-JLL-JAD Document 6-5 Filed 08/22/16 Page 2 of 2 PageID: 728

2011 Scheduled Maintenance Intervals Miles (in thousands) 5/25/45/65/85/105/125 15/55/95/135 35/75/115 Kilometers (in thousands) 8/40/70/100/130/160/190 25/85/145/205 55/115/175

Engine Oil/Oil Filter – change oil and replace filter l l l

AdBlue Fluid – fill completely with fresh fluid (maximum capacity: 23 liters) and adapt l Audi Q7 3 0L TDI only l Audi Q7 3 0L TDI only l Audi Q7 3 0L TDI only learned values for AdBlue tank under guided fault finding after filling fluid Cooling System – check level, add if necessary l l Engine Compartment – check for leaks l l Battery – check for clean terminals (no corrosion), properly mounted housing, l l and no damage; replace if necessary. Also, check the acid level of battery only if the level can be seen through the housing and fill if necessary Dust and Pollen Filter – replace l l l A4, A5, Q5, TT and TTS Spark Plugs – replace at 35,000 miles or 3 years, whichever occurs first. Thereafter, every 40,000 miles or 3 years, whichever occurs first with 2 0L TFSI engine only – replace at 55,000 miles or 6 years, whichever occurs first. l 55K only except A4, A5, Q5, TT and TTS with 2 0L Thereafter, every 60,000 miles or 6 years, whichever occurs first TFSI engine Power Steering Fluid – check, add if necessary l Air Cleaner – clean housing, replace filter element l 55K only l 115K only Ribbed V Belt – check condition, replace if necessary. Check tension of belt drive l 75K only V6 FSI, V6 TFSI (rear belt), 2 0L TFSI, 5 2L V10 with manual tensioner and retension if necessary FSI, 4 2L V8 FSI only – replace only the V belt for the compressor drive l 75K only 3 0L TFSI only

l R8, R8 Spyder only l Audi Q7 3 6L, R8, Ribbed V Belt and Tensioner – check condition and replace if necessary R8 Spyder only

Snow Screen for Air Cleaner – clean l A4, S4, A5, S5 and A6 only l A4, S4, A5, S5 and A6 only l A3 2 0L TDI and Audi Q7 3 0L l A3 2 0L TDI and Audi Q7 3 0L Fuel Filter – replace TDI only TDI only

l USA 125K only Audi Q7 3 0L TDI, Diesel Particulate Filter (DPF) – check ash loading according to manufacturer’s A3 2 0L TDI only work procedure, replace* if necessary l Canada 205,000 km only Audi Q7 3 0L TDI, A3 2 0L TDI only Plenum Panel – remove cover for plenum panel to check water drain and clean if necessary l l Tires and Spare Wheel – check for wear and damage, check tire pressure, l reset Tire Pressure Monitoring System (TPMS) – check for wear and damage, check tire pressure and renewal date of tire l l repair set (where applicable), reset Tire Pressure Monitoring System (TPMS) Tires – rotate, reset TPMS l 5K only Wiper Blades – check condition and replace if necessary l l l Wiper/Washer/Headlight Washer – check adjustment and function, add fluid if necessary l l l Interior Lights – check all interior lights, glove box illumination, control lights and MMI l (if applicable) Front Lighting – check function of parking lights, low beams, high beams, fog lights, blinkers l l and hazard lights Rear Lighting – check function of brake lights (including third brake light), tail lights, back-up l l lights, rear fog lights, license plate lights, blinkers and hazard lights Service Reminder Display – reset l l l Horn – check function l l l Audi Q7, A3, A6, S6, TT, TTS, Door Hinges and Straps – Lubricate R8 and R8 Spyder only Doors – lubricate door hinges, straps, locks and hood latch l l Audi R8, R8 Spyder, TT and l Audi R8, R8 Spyder, TT and Hood Lid Hinges – lubricate TTS only TTS only Sliding Roof – clean guide rails and lubricate with grease l l Brake System – check for damage, leaks, pad thickness, fluid level l l l Brake Discs – check thickness l Exhaust System – check for damage, leaks l l

Front and Rear Axle – check for excessive play, check dust seals on ball joints and tie rod ends l l Drive Shaft Boots – check l l Automatic Transmission and Final Drive – check for leaks l l Manual Transmission and Final Drive – check for leaks l l Continuously Variable Transmission (multitronic) – change ATF l Haldex Clutch – change oil l A3, TT, TTS only DSG/S Tronic – change oil and replace filter element l A3, TT, TTS, S4 and S5 only Underbody – check for damage and leaks l l Road Test – check braking, kick-down, steering, electrical, heating and ventilation systems, air l l conditioning, ASL Automatic Shift Lock, power accessories and reset driver information display Timing Belt – replace at 110K miles (175,000 km) on Audi TTS or 130K miles (205,000 km) on Audi A3 2.0L TDI only. Check condition of timing belt tensioning system, dampening pulleys, and idler pulleys and replace if necessary Brake Fluid – replace every 2 years regardless of mileage Cloth Top – check function and rollover protection every 2 years regardless of mileage (Audi A5/S5 Cabriolet, R8 Spyder only) Crash Active Headrest – check function every 2 years regardless of miles/kilometers (A8 only) *If DPF replacement is not necessary, perform check every 20,000 miles (30,000 km) thereafter until replacement becomes necessary. Subsequent DPF replacement interval is a minimum of 120,000 miles (200,000 km) thereafter. Audi of America, Inc. believes the information and specifications to be correct at the time of printing. Specifications, maintenance intervals, standard features and options subject to change without notice.

Revised 2/11 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 1 of 57 PageID: 729 EXHIBIT F

Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 2 of 57 PageID: 730

Service Training

Self-Study Program 824803 The Volkswagen 2.0 Liter Chain-Driven TSI Engine Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 3 of 57 PageID: 731

Volkswagen Group of America, Inc. Volkswagen Academy Printed in U.S.A. Printed 5/2008 Course Number 824803

©2008 Volkswagen Group of America, Inc.

All rights reserved. All information contained in this manual is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen Group of America, Inc., its affi liated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, nor may these materials be modified or reposted to other sites without the prior expressed written permission of the publisher.

All requests for permission to copy and redistribute information should be referred to Volkswagen Group of America, Inc.

Always check Technical Bulletins and the latest electronic repair information for information that may supersede any information included in this booklet.

Trademarks: All brand names and product names used in this manual are trade names, service marks, trademarks, or registered trademarks; and are the property of their respective owners. Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 4 of 57 PageID: 732

Contents

Introduction ...... 1

Engine Mechanicals ...... 3

Lubrication System ...... 20

Crankcase Ventilation System ...... 25

Cooling System ...... 27

Air Intake System ...... 30

Fuel System ...... 36

Exhaust System ...... 43

Engine Management System ...... 44

Service ...... 48

Knowledge Assessment ...... 51

Note Important!

This Self-Study Program covers information on For testing, adjustment and repair the Volkswagen 2.0 Liter Chain-Driven TSI Engine. procedures, always refer to the latest This Self-Study Program is not a Repair Manual. electronic service information. This information will not be updated.

i Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 5 of 57 PageID: 733

Page intentionally left blank Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 6 of 57 PageID: 734 Introduction

Technical Description

Four Cylinder, Four Valve, TSI Turbocharged Gasoline Engine Engine Block Engine Management – Cast iron crankcase – MED 17.5 engine control module – Balancer shafts in crankcase – Hot-fi lm air mass fl ow with integral temperature – Forged steel crankshaft sensor – Sump-mounted oil pump — chain-driven by – Throttle valve with contactless sensor crankshaft – Map-controlled ignition with cylinder-selective, – Timing gear chain — front end of engine digital knock control – Balancer — chain-driven at front end of engine – Single-spark ignition coils

Cylinder Head Turbocharging – 4-valve cylinder head – Integral exhaust turbocharger – 1 INA intake camshaft adjuster – Charge-air cooler – Boost pressure control with overpressure Intake Manifold – Electrical wastegate valve – Tumble fl ap Exhaust Fuel Supply – Single-chamber exhaust system with close- coupled pre-catalyst – Demand controlled on low and high-pressure ends – Multi-port high-pressure injector Combustion Process – Fuel straight injection

1 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 7 of 57 PageID: 735 Introduction

2.0L Chain-Driven TSI Engine

201 (150) 265 (360)

243 (330)

220 (300) 161 (120)

200 (270)

177 (240) 121 (90) 155 (210)

133 (180)

110 (150) 80 (60)

88 (120)

67 (90) 40 (30) 44 (60)

22 (30)

0 0 01000 20003000 4000 5000 6000 7000 Engine speed in RPM

Specifications Engine Code CCTA - CBFA Type of Engine Inline 4-Cylinder TSI Engine Displacement 121 cu in (1984 cm3) Maximum Power 200 hp (147 kW) at 5100 - 6000 rpm Maximum Torque 206 lb ft (280 Nm) at 1700 - 5000 rpm Number of Valves Per Cylinder 4 Bore 3.2 in (82.5 mm) Stroke 3.7 in (92.8 mm) 9.6 : 1 Firing Order 1-3-4-2 Engine Weight 317 lb (144 kg) Engine Management Bosch MED 17.5 Fuel Grade 95/91 RON Exhaust Emission Standard ULEV (CCTA) - SULEV (CBFA)

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Engine Mechanicals

Cylinder Block

The cylinder block has a closed-deck confi guration The undersides of the pistons are cooled by engine and is made of cast iron. It houses the fi ve-bearing oil supplied by spray jets mounted on the cylinder crankshaft assembly and the two balancer shafts. block. The housing for mounting the chain drives is The cylinder block is sealed on the transmission side integrated in the block. The cylinder liners are by a sealing fl ange and gasket. fi nished in a three-stage fl uid jet honing process.

3 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 9 of 57 PageID: 737

Engine Mechanicals

Oil Pan

The oil pan consists of two sections. The bottom section is made of sheet steel (deep drawn, punched, and catalytically coated). It houses The upper section is made of an aluminum alloy Oil Level Sensor G12 and the drain plug. (AlSi12Cu) and reinforces the crankcase through a bedplate effect. It also houses the oil pump. The bottom section is bolted to the upper section and sealed with a liquid sealant. The upper section is bolted to the crankcase and sealed with a liquid sealant. The oil pan has an integral honeycomb insert made of polyamide to prevent oil churning when the vehicle is driven aggressively.

Aluminum Alloy Oil Pan Top Section

Polyamide Honeycomb Insert

Stamped Steel Oil Pan Bottom Section

4 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 10 of 57 PageID: 738

Engine Mechanicals

Crankshaft

The fi ve main bearing crankshaft is made of forged The crankshaft main bearings are a two component steel and induction hardened. Optimal balancing is type. Axial play of the crankshaft is controlled by achieved by using eight counterweights. thrust washers at the middle support bearing. To additionally reinforce the crankshaft assembly, Bronze bushings are press-fi t into the small three inner main bearing caps are cross-bolted to the trapezoidal upper end of the connecting rods. cylinder block. The lower end of the connecting rods are cracked to Trapezoidal Connecting Rod (Small End) ensure a precision fi t and reduce movement of the Material: 36MnVS4 bearing cap under load. Length: 5.82 in (148 mm) The upper and lower bearing shells of the connecting rod are not identical in composition. The upper Big-End Bearing: 1.88 in (47.8 mm) bearing shell is a two-component composite Small-End Bearing: 0.82 in (21 mm) bearing while the lower shell is a three-component composite bearing. Piston Wrist Pin

Wrist Pin Retaining Clip

Bronze Connecting Rod Bushing Trapezoidal Shaped Small End of Connecting Rod

Connecting Rod Upper Bearing Shell

Main Bearing Cap

Connecting Rod Cap Cross-Bolted Main Bearing Caps and Bolts

5 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 11 of 57 PageID: 739

Engine Mechanicals

Gears are coded for assembly — they can only be installed one way

Vibration Damper

Chain Sprocket

Center Bolt

Spur Gear Drive

The chain drive sprocket is mounted to the On the transmission side of the engine, a dual crankshaft face and driven by a spur gear forged in mass fl ywheel or torque converter (depending on the crankshaft. The other end of the chain sprocket transmission) is mounted to the crankshaft with also has a spur gear surface which drives the eight bolts. vibration damper. This method of joining allows high torque to be transmitted to the chain sprocket and vibration damper while keeping the diameter of the components small. This allows better sealing by the radial shaft seal at the vibration damper hub. Special tools are required during disassembly/assembly of these components to prevent damage to the gears.

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Engine Mechanicals

Pistons

The pistons are specially designed for the TSI engine with a cast-in ring land for the upper piston ring. Coated skirts are used to help reduce frictional losses. The upper piston ring is rectangular, the second piston ring is a taper-faced ring, and the oil scraper ring is a beveled ring with expander. The 31CrMoV wrist pins are held in place by snap rings. The bottom side of the pistons are cooled by engine oil from spray jets mounted on the cylinder block.

7 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 13 of 57 PageID: 741

Engine Mechanicals

Cylinder Head

L

M

K

N

J

O

P I

H

G

Q R F E

D C

S

T

B

A

8 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 14 of 57 PageID: 742

Engine Mechanicals

The 4-valve cylinder head is cast from aluminum The cylinder head cover adds support by acting as a alloy. Intake and exhaust valves are actuated by roller ladder frame and does not have to be disassembled cam followers supported by hydraulic valve lifters. to remove the cylinder head. The intake and exhaust camshafts are chain-driven. The diagonal opening and sealing face simplifi es The variable timing of the intake camshaft is drive chain installation. accomplished through the INA camshaft adjustment system (page 11).

Features – Crossfl ow cylinder head made of ASi10Mg – Single valve spring made of steel – Three-layer metal head gasket. – Roller cam followers running in needle bearings, – Intake ports divided by baffl e plate hydraulic valve clearance adjustment – Cylinder head cover made of AlSi9Cu3 with – Hydro-formed, assembled intake camshaft with integrated ladder frame, bolted to cylinder head variable valve timing, dwell angle 190°, valve lift and sealed with liquid sealant 10.7 mm – Intake valve: solid-stem valve, chrome-plated with – Hydro-formed, assembled exhaust camshaft with reinforced seat press-fi t drive gear, dwell angle 180°, valve lift 8 mm – Exhaust valve: sodium fi lled hollow-stem valve, chrome-plated and tempered with reinforced seat – INA Camshaft Adjuster, timing range 60° crank angle, basic position is locked in “retard” (engine not running)

Legend A Check valve K Cylinder head cover B Sealing end cap L Cylinder head cover screw C Exhaust valve M Screw plug D Intake valve N Sealing end cap E Valve stem seal O Hydraulic valve clearance adjuster F Valve spring P Roller cam follower G Valve spring retainer Q Dowel pin H Valve keeper R Cylinder head bolt with washer I Exhaust camshaft S Exhaust manifold locating pin J Intake camshaft with INA adjuster T Exhaust manifold stud

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Engine Mechanicals

Bearing Bridge

A die-cast aluminum bearing bridge mounted at the The bearing bridge also serves to connect the two oil front of the cylinder head has the following tasks: galleries of the cylinder head. A check valve and fi lter screen are integrated in the pressurized oil duct to – Supporting the camshafts the INA camshaft adjuster. – Supplying pressurized oil to camshaft bearings – Supplying pressurized oil to the camshaft adjuster – Controlling axial movement of camshafts – Mounting point for Camshaft Adjustment Valve 1 N205

Die-Cast Aluminum Bearing Bridge

10 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 16 of 57 PageID: 744

Engine Mechanicals

INA Camshaft Adjustment System

The 2.0L TSI engine uses a hydraulic vane cell Intake camshaft timing is map-controlled by the adjuster on the intake camshaft to affect valve engine control module. The goals are to improve timing. Only the intake camshaft has variably engine power, enhance running smoothness, and adjusted timing on this engine. Oil pressure for this reduce emissions (through internal exhaust gas task is provided by the engine oil pump. recirculation). The variable camshaft adjuster provides an adjustment range of 60° crank angle. The camshaft Function is locked in the retard position at engine shut-off. This function is performed by a spring-loaded locking Pressurized oil fl ows to the central valve via the pin. The camshaft is released when the engine oil camshaft bearing through bores in the camshaft. pressure exceeds 7.25 psi (0.5 bar). From here, depending on adjustment requirements, The rotor of the vane cell adjuster is welded to the the oil fl ows through additional bores in the camshaft intake camshaft. The 4/3-way central valve required to one of the chambers in the adjuster. for adjuster control is integrated in the camshaft.

Stator Cover

4/3-Way Vane with Spring Central Valve

Low-Friction Bearing

Camshaft Adjustment Valve 1 N205

Locking Pin

Armature Locking Spring Shaft with Ball

Rotor

Winding Camshaft with Bores Coil Element for Hydraulic Control

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Engine Mechanicals

Valve Timing

J623

G70 N205

J271 G28

G40

G17

Legend G17 Engine Coolant Temperature Sensor J271 Motronic ECM Power Supply Relay G40 Camshaft Position Sensor J623 Motronic Engine Control Module G28 Engine Speed Sensor N205 Camshaft Adjustment Valve 1 G70 Mass Air Flow Sensor

The valve is activated electrically via Camshaft The new design has many advantages. It provides Adjustment Valve 1 N205. a very high adjustment rate capability even in When activated by a PWM signal, the solenoid unfavorable conditions such as cold starts or high oil produces a variable magnetic fi eld. Depending on temperatures during engine idling. the strength of the magnetic fi eld, the shaft with ball is shifted towards the camshaft axis of rotation. This, in turn, displaces the 4/3-way central valve and allows the oil to fl ow to the corresponding chamber.

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Engine Mechanicals

Chain Drive

All three chains of the 2.0L engine are driven directly Gear chains (as opposed to roller chains) are used in by the chain sprocket mounted to the crankshaft. all three planes. They are 1/4 inch gear chains whose tension is controlled by four tension plates and fi ve The chains are arranged in three planes (levels). guide plates. – 1st Plane - Balance Shaft Drive Gear chains are more wear resistant and produce – 2nd Plane - Camshaft Drive less noise than roller chains. The amount of space required for a given power transmission capacity is – 3rd Plane - Oil Pump Drive less than that of a timing belt or roller chain. Gear chains are highly fl exible in application because their width can be adapted for any power requirement by selecting the number of plates accordingly. They have an effi ciency of approximately 99%.

Intake Camshaft with INA Adjuster

Balance Shaft Oil Pump Drive Gear Drive

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Engine Mechanicals

1st Plane — Balance Shaft Drive

Two cylinder block housed balance shafts are used Chain lubrication is provided by oil returning from the to counteract unwanted vibration at engine speeds cylinder head. Oil is collected and distributed to the above 4000 rpm from being transmitted to the car chain by a separate lubrication channel. body. Mounting the balance shafts in the cylinder block has The balance shafts run at twice the engine speed in the following advantages: opposite direction from one another. The direction of the second shaft is reversed by an idler gear. The – The cylinder block provides higher rigidity horizontally staggered arrangement of the balance – Oil foaming is eliminated by moving the rotating shafts also helps reduce vibration. parts away from the oil sump The balance shafts are made from spheroidal graphite cast iron and run in three bearings.

Balance Shafts

Guide Rail Hydraulic Chain Tensioner

Tensioning Rail Idler Gear

Slide Rail

Chain Sprocket

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Engine Mechanicals

Balance Shaft Layout

The oil return channel from the cylinder head is The balance shaft is mounted in a plastic pipe. This located on the exhaust side of the cylinder block. prevents oil returning from the cylinder head from Return oil fl ows through the balance shaft housing. churning and foaming from direct contact with the balance shaft. Oil Return Channel from Cylinder Head

Plastic Pipe

Oil Return Line

Idler Gear Helical Balance Shaft Drive Gear 15 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 21 of 57 PageID: 749

Engine Mechanicals

2nd Plane — Camshaft Drive

The camshafts are driven by a chain positioned on the second level. Tensioning is accomplished by a Chain Tensioner hydraulic tensioner. The tensioner can be accessed with Rig Pin through a service opening. This allows the timing chain to be detached after removing the cylinder head without having to remove the engine timing cover.

Slide Rail, Timing Gear Chain Sprocket, INA Intake Camshaft Adjuster

Chain Sprocket, Exhaust Camshaft

Collar Bolt, Tensioning Rails Guide Rail, Timing Gear Tensioning Rail, Timing Gear

Balance Shaft Gear, Exhaust Side of Engine Balance Shaft Gear, Intake Side of Engine Hydraulic Tensioner, Camshaft Chain Drive

Tensioning Rail

Balance Shaft Chain Tensioner Slide Rail

Collar Bolt, Tensioning Rail Tensioning Rail, Chain Sprocket Oil Pump

Chain, Oil Pump

Chain Sprocket, Oil Pump

16 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 22 of 57 PageID: 750

Engine Mechanicals

3rd Plane — Oil Pump Drive

The chain drive for the oil pump is located in the third A hydraulically damped system is not needed due plane. A polyamide slide rail is used in this drive to to the low dynamic load. The chain is lubricated by locate and tension the chain. The tension is produced return oil or by the oil in the oil pan. by a mechanical spring.

Drive Sprocket Attached to Crankshaft for Oil Pump

Slide Rail

Oil Filter Oil Pump Screen Pressure Regulating Valve

Tensioning Spring

17 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 23 of 57 PageID: 751

Engine Mechanicals

Each drive chain has a special dark link. The dark However, to bring the camshaft drive gears into links are only on one side of the drive chain facing alignment with TDC by rotating the crankshaft out from the engine block. For the adjustment of the requires approximately 166 revolutions of the camshaft drive, the markings on the chain sprockets crankshaft. Therefore, during repairs when the drive must align with the dark links of the chain. chains must be removed, it is acceptable that the technician use the dark links as a guide and make his own markings on the sprockets. Please refer to the appropriate repair information for complete details.

18 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 24 of 57 PageID: 752

Engine Mechanicals

Alternator/AC Compressor Drive

A subframe supports both the alternator and air conditioning compressor. They are driven by a poly-vee belt which is tensioned by a spring-loaded tensioner.

Subframe

Alternator

Spring-Loaded Belt Tensioner

Air Conditioner Compressor

19 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 25 of 57 PageID: 753

Lubrication System

Lubrication System Schematic

Legend 1 Screen 2 Oil pump, chain-driven 3 Cold start valve 4 Pressure regulating valve 5 Check valve, integrated into oil pump 6 Water-oil heat exchanger A 7 Check valve, integrated into oil pump 8 Oil cleaner 9 Oil drain valve 10 Oil Pressure Switch F1 11 Spray jets with integrated valves 12 Oil screen 13 Chain tensioner 24 14 Chain tensioner 15 Gear lubrication 16 Coarse oil mist separator 17 Non-return valve, integrated into cylinder head 23 18 Oil screen A 19 Flow restrictor 25 22 20 Lubrication of high-pressure fuel pump cam Bearing Bridge 21 Fine oil mist separator 17 22 Oil screen 23 Check valve, integrated into bearing bridge 24 Multi-directional regulating valve for camshaft adjuster 25 Camshaft Adjustment Valve 1 N205 26 Oil Level Thermal Sensor G266 27 Vacuum pump 28 Turbocharger 6 7 8 10 9

Subframe

16

Oil Separator

15 5

2 4 3 26 1 Oil Pan

20 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 26 of 57 PageID: 754

Lubrication System

21

A AAAA 27

18 19 BB B BBBBB

Vacuum Pump

BBBBBBB B A Camshaft bearing B Support element C Balance shaft bearing D Connecting rod A A AA E Main bearing

Cylinder Head

Low-Pressure Circuit 13 14 28 High-Pressure Circuit

CCCDDD D

12 12

E EEEE

11 11 11 11 12 12

CCC

Cylinder Crankcase

21 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 27 of 57 PageID: 755

Lubrication System

Oil Pump

The external gear oil pump is housed in the oil pan Excessively high oil pressures can occur at high oil top section and is chain-driven by the crankshaft. viscosity levels during cold starting. The oil pressure is controlled inside the pump by a control spring and piston. The system is also protected against overpressure by a spring loaded valve ball (cold start valve).

Cover

Drive Housing Shaft Chain Sprocket Bushing

Steel Ball

Compression Spring

End Cap External Oil Pump Gears Piston

Compression Spring

Stop

22 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 28 of 57 PageID: 756

Lubrication System

Oil Filter and Cooler

The oil fi lter and oil cooler bracket are integrated in a The oil fi lter cartridge is accessible from above for subframe. It also houses the oil pressure switch and easy servicing. To prevent oil spillage when changing the tensioner for the belt drive. the fi lter, a breech pin opens as the fi lter is removed. This allows the oil to fl ow back into the oil pan.

Oil Filter

Oil Cooler

Oil Filter Module Bracket

23 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 29 of 57 PageID: 757

Lubrication System

Oil Filter Cartridge

Non-Return Oil Feed from Valve Oil Cooler Oil Cooler

Oil Flow to Engine

Breech Pin

Oil Seals

Return Line to Oil Pan Closed in this Position

Non-Return Valve Closed

Sleeve Integrated into Oil Filter

Breech Pin Resetting Range Allowing Direct Return To Oil Pan

Direct Return to Oil Pan

24 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 30 of 57 PageID: 758

Crankcase Ventilation System

System Overview

A primary oil separator is installed on the cylinder The separated oil fl ows into the cylinder head block just below the engine coolant pump. A baffl e through a port in the cylinder head cover; from there, plate in the oil pan upper section prevents engine the oil is returned to the oil pan. To prevent intake oil from being drawn out of the sump at the gas of the engine oil under excessively high vacuum, a extraction point. In the primary oil separator, the check valve is installed at the end of the oil return blow-by gases fl ow through a labyrinth to separate duct. This check valve is installed in the honeycomb coarse particles from the oil. The primary oil insert in the oil pan. separator has two separation stages which work on The blow-by gases fl ow along a duct integrated in the baffl e-plate principle. the cylinder head cover to a two-stage pressure The separated oil fl ows back along oil return lines regulating valve. The pressure regulating valve into the oil pan. The blow-by gases continue to fl ow prevents excessively high vacuum from developing from the primary oil separator through a channel within the cylinder block. in the cylinder block to the cylinder head. The large The pressure regulating valve is installed in a housing cross-section channels results in a low crankcase together with two check valves. The check valves breather gas fl ow rate which prevents oil droplets regulate blow-by gas fl ow depending on pressure from travelling along the sides. conditions in the intake manifold. If a vacuum is A fi ne oil separator is integrated with the cylinder present in the intake manifold (for example, at low head cover. A single-stage cyclone separator with a engine speed) when the exhaust gas turbocharger parallel bypass valve fi lters out any residual ultra-fi ne is not producing boost pressure, the blow-by gases oil particles. are drawn directly into the intake manifold. If boost pressure is present, the blow-by gas is inducted on the intake side of the turbocharger.

Fine Oil Separator

Primary Oil Separator

25 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 31 of 57 PageID: 759

Crankcase Ventilation System

Positive Crankcase Ventilation

This system supplies the crankcase with fresh air to The PCV valve ensures a continuous air supply and mix with blow-by gases. Fuel and water vapors in the that unfi ltered blow-by gases cannot be aspirated blow-by gases are absorbed by the fresh air and then directly. discharged through the crankcase ventilation system. The PCV valve is also designed to open under high Fresh air is drawn in from the intake air system pressure inside the crankcase. This precaution downstream of the air fi lter and Mass Air Flow prevents damage to seals due to over-pressure. Sensor. A breather pipe is connected to the cylinder head cover via a check valve (PCV valve).

PCV Valve

Cutaway View of Crankcase Breather Valve

A Cover

Compression Spring

Housing O Ring

Silicone Valve Disc, Perforated Sealing Disc Direction of Flow of Direction

O Ring Retainer

B

Direction of Flow A-B Direction of Flow B-A Pressure Greater Than 1.4 ± 0.21 psi Opening Pressure - 0.10 psi (-7 hPa) (100 ± 15 hPa)

26 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 32 of 57 PageID: 760

Cooling System

Engine Cooling System

The engine uses a cross-fl ow cooling system. Engine The heat exchanger and turbocharger are part of coolant fi rst fl ows to the front of the engine from the engine cooling circuit. The engine oil cooler is the coolant pump. The coolant is then distributed connected directly to the cylinder block through its along ducts and circulates around the cylinders. After mounting subframe. circulating through the cylinder head, the coolant After-Run Coolant Pump V51 protects the is routed back to the radiator via the thermostat turbocharger bearings from overheating after engine housing or recirculated through the coolant pump if shut-off. the thermostat is closed. The pump is activated by the engine control module based on programmed characteristic maps.

Heat Exchanger

Coolant Expansion Tank

Turbocharger Coolant Outlet from Cylinder Head to Heat Exchanger

Coolant Pipe

Engine Oil Cooler Thermostat/Coolant Pump Module

After-Run Coolant Pump V51

Radiator

Note Vehicle coolant systems are dependent on model equipment installed. For vehicle specifi c information, please consult the relevant Repair Manual.

27 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 33 of 57 PageID: 761

Cooling System

Cylinder Head

Cylinder Block

Engine Coil Cooler

Coolant Pump Drive

Thermostat Housing with Coolant Pump

Outlet Inlet Long and Short Cooling Circuits Controlled by Coolant Thermostat

28 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 34 of 57 PageID: 762

Cooling System

Coolant Pump

The coolant pump, temperature sensor, and coolant thermostat are integrated in a common housing made of duroplastic. Note The tension of the coolant pump This housing is attached to the cylinder block below drive belt is defi ned by the installation the intake manifold. position of the coolant pump and A drive gear at the end of the balance shaft drives cannot be adjusted. In the event of the coolant pump via a toothed belt. The larger drive coolant pump failure, the housing gear on the pump acts as a speed reducer. A fan must also be replaced. wheel is attached to the coolant pump drive gear to The toothed belt drive gear of the cool the toothed belt. coolant pump has a left-hand thread. The coolant pump impeller is made of plastic and has a special vane contour which permits high engine speeds with low risk of pump cavitation. The thermostat begins to open at 203°F (95°C) and is fully open at 221°F (105°C).

Engine Coolant Temperature (ECT) Sensor G62 Coolant Pump Impeller

Fan Wheel Heating Return Line

Coolant Thermostat

Balance Shaft

Outlet Toothed Belt Drive Gear with Left-Hand Thread Bolt

Inlet

29 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 35 of 57 PageID: 763

Air Intake System

Intake Manifold Module

Legend 1 Throttle valve control module 6 Fuel port, high-pressure fuel rail 2 Intake Air Temperature (IAT) Sensor G42 7 Double check valve for EVAP system 3 Evaporative (EVAP) Emission Canister Purge 8 High-pressure fuel rail Regulator Valve N80 9 Fuel Pressure Sensor G247 4 Vacuum motor for intake manifold fl ap 10 Intake manifold fl aps changeover 11 Intake Manifold Runner Position Sensor G336 5 Fuel port, high-pressure pump

3 4

2

1

5

6

7

8

9

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Air Intake System

The body of the intake manifold module is made Feedback about the fl ap position is provided by of polyamide and consists of two shells which are Intake Manifold Runner Position Sensor G336. When plastic-welded together. the engine is not running, the intake manifold fl aps The intake manifold fl aps are trough shaped. Through are closed. this shape and their arrangement in the intake port, Blow-by gases and vapor from the charcoal canister the intake airfl ow is improved when the fl aps are vent directly into the airfl ow downstream of the open. An improvement in tumble capacity is also throttle valve assembly. achieved when closing the fl aps. The intake manifold fl aps are adjusted by a vacuum motor. The motor uses a two stage process.

11

10

31 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 37 of 57 PageID: 765

Air Intake System

Air Supply

Vent Hose Turbocharger

Air Intake Vacuum Intake Line Tube Positive Crankcase Ventilation (PCV) Line

Vacuum Pump

Charcoal Canister Line Air Filter

Intake Manifold Runner Control (IMRC) Valve N316

Intake Manifold Pressure Vent Hose Regulating Valve Oil Separator

Pressure Hose

Charge Air Cooler

32 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 38 of 57 PageID: 766

Air Intake System

Evaporative Emission System

Venting of fuel vapors from the charcoal canister When boost pressure is not present, the vapors are while the engine is running involves using two drawn in through the intake manifold downstream different paths. When boost pressure from the of the throttle body. A double check valve in the turbocharger is present, fuel vapors cannot directly evaporative system accomplishes this task. fl ow into the intake manifold. In this case, the vapors are directed to the intake side of the turbocharger.

Infl ow into Intake Fuel Tank Manifold (Charge Pressure Present)

Exhaust Gas Turbocharger

Charcoal Canister Intake Evaporative (EVAP) Manifold Emission Canister Purge Regulator Valve N80

Double Check Valve

Infl ow into Intake Charge Air Manifold (No Cooler Charge Pressure)

33 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 39 of 57 PageID: 767

Air Intake System

Vacuum Supply

The required vacuum for the brake booster and For this reason, it is not necessary to use an other vacuum driven components of the engine is additional vacuum reservoir. The pump is rated to produced by a mechanically driven vacuum pump. deliver a continuous absolute pressure of 0.73 psi The pump is a swivel vane pump driven by the (50 mbar). exhaust camshaft and is installed behind the high- Oil for lubricating the pump and to enhance the pressure fuel pump. sealing of the pump vanes is provided through a The vacuum pump is capable of providing a suffi cient special port in the cylinder head. vacuum for all vacuum components under any operating condition.

Check To Brake Servo Valve with Integrated T-Piece Vacuum Pump on the Exhaust Camshaft — Mechanically Driven

Intake Manifold Runner Control (IMRC) Valve N316

Vacuum Motor

34 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 40 of 57 PageID: 768

Air Intake System

Vacuum Pump

The vacuum pump consists of a rotor running in The position of the vane is constantly changing due bearings and a moving vane made of plastic which to the rotational movement of the rotor. As a result, divides the vacuum pump into two sections. the volume of one section increases while the volume of the other section decreases.

Air Infl ow from Vacuum System Vane Intake End Induced Air

Rotor Vane Rotor

Compressed Air

Air Outfl ow to Pressure End Cylinder Head Oilway (Shuttle Valve)

35 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 41 of 57 PageID: 769

Fuel System

Fuel System

The fuel system is an advanced version of the The high-pressure system is supplied with fuel by system used on earlier TSI engines. a returnless, demand controlled pre-supply system. Fuel is delivered at a variable pressure between 50.7 All parts which are in direct contact with fuel are psi (3.5 bar) and 87.1 psi (6.0 bar). designed in such a way that the engine can run on any available fuel grade. No low pressure sensor is used in this system. The correct fuel pressure is determined by Special materials are used to ensure the fuel mapped settings of the engine control module and system meets all requirements relating to corrosion subsequently set by Fuel Pressure Regulator Valve protection. N276.

Fuel Pressure High-Pressure Sensor G247 Fuel Pump Rail

Fuel Pressure Regulator Valve N276 Fuel Pump (FP) Control Module J538

Fuel Filter PWM Signal From Engine Control Module

Ter. 31

Ter. 30 Fuel Tank

36 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 42 of 57 PageID: 770

Fuel System

Fuel Rail

The fuel delivery rate of the high-pressure pump has Fuel Pressure Sensor G247 been reduced through the use of a four-lobe cam. The fuel pressure sensor is mounted in the fuel rail A quicker pressure build-up is thus possible. This and is designed for measuring pressures up to 2900 build-up benefi ts both cold start and hot start psi (200 bar). situations.

Note Always carefully follow the repair manual instructions when replacing the high-pressure fuel pump. The pump can be destroyed if the actuating cam follower is not properly installed. Fuel Pressure Regulating Valve N276 Fuel High- Pressure Pump

Four-Lobed Cam

Cam Follower

From Fuel Tank Rail Camshaft

Fuel Pressure Sensor G247

Fuel Injector

37 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 43 of 57 PageID: 771

Fuel System

High-Pressure Pump

The demand controlled high-pressure pump by The high-pressure pump produces a maximum Bosch is driven by a four lobed cam on the end of pressure of 2175.5 psi (150 bar). The fuel pressure the intake camshaft. requested by the engine control module is adjusted by Fuel Pressure Regulator Valve N276. The pressure The pump piston is driven by the camshaft and a is regulated between 725.1 psi (50 bar) and 2175.5 cam follower. This reduces friction as well as the psi (150 bar) depending on engine requirements. chain forces. The results are smoother engine operation and higher fuel economy. The high-pressure pump now has its own pressure limiting valve. This valve opens at approximately 2900 The use of the four lobe cam has allowed a reduced psi (200 bar) and admits pressure into the pump piston stroke compared to earlier versions of the chamber. Previously, pressure was discharged into 2.0L TSI engine. Due to the shorter stroke, the the low-pressure circuit. Excessively high-pressures individual delivery rates are lower. This, in turn, can build up in overrun or when the engine heat results in reduced pressure fl uctuations. The soaks after shut-off. metering precision of the injectors is also improved, as there is now one feed stroke per injection. The The pressure pulsations in the low-pressure circuit advantage of this is improved oxygen sensor control are reduced by a damping element integrated in the and fuel effi ciency. pump.

Note Always follow the repair manual cautions and warnings when opening the high-pressure fuel system lines. Serious injury can result if proper procedures are not observed.

High-Pressure Regulation

Fuel pressure and fuel quantity are regulated by Fuel After the intake valve closes, electrical power to the Pressure Regulator Valve N276. The signal from Fuel solenoid valve is shut off. Pressure Sensor G247 is used by the engine control The intake valve kept closed by the pressure in the module as a parameter. This sensor is located in the pump until the pump piston feed stroke is complete fuel rail. and the intake stroke begins. Power demand has been reduced signifi cantly through a newly designed fuel pressure regulating Note Applying continuous voltage to Fuel valve and associated control concept. Pressure Regulator Valve N276 for longer than one second will cause At the start of delivery, Fuel Pressure Regulating damage to N276. Valve N276 is activated only very briefl y. The intake valve closes, fuel pressure builds up, and fuel delivery immediately begins.

38 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 44 of 57 PageID: 772

Fuel System

Low Pressure Damper Inlet Valve

Fuel Pressure Regulator Delivery Needle Valve N276 Chamber

Outlet

Flange

Armature Coil

Piston O Ring

Seal

Note These illustrations have been modifi ed slightly from the actual pump for purposes of clarity. Pressure Limiting Valve

Connection Connection to to Rail Low Pressure

39 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 45 of 57 PageID: 773

Fuel System

Control Concept

The diagram shows the high-pressure regulation This cycle takes place four times during a single function of the high-pressure pump. The complete revolution of the camshaft. The bottom diagram delivery cycle for a cam is shown here. shows the movement of the pump piston and the activation of Fuel Pressure Regulator N276.

FRV De-Energized FRV De-Energized IV Spring EFP Force Flow Vacuum IV Spring EFP Force Flow Force Flow Reverse F F F F F F F F

IV

Delivery Chamber Delivery Chamber

EV

Intake Stroke

IFRV

Fig. 1 Fig. 2 – Pump piston intake stroke, fuel fl ows into pump – Pump piston feed stroke, fuel fl ows back to inlet chamber – N276 de-energizes – N276 de-energizes – IV opens due to upward motion of pump piston, fuel – Intake Valve (IV) opens because spring force is less than moves from pump chamber into inlet fl ow force of transfer fuel pump — vacuum is present – EV closes inside pump – Exhaust Valve (EV) closes

40 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 46 of 57 PageID: 774

Fuel System

The operating point of the N276 changes depending The earlier N276 is activated, the more actively the on when it is activated by the engine control module. delivery stroke can be used and hence the more fuel The ON time remains the same. can be delivered.

FRV Energized FRV De-Energized IV Spring EFP Force Flow Pressure Delivery IV Spring EFP Force Flow Pressure Delivery F F F F F F F F

Delivery Chamber Delivery Chamber

Legend FRV Fuel Pressure Regulator Valve N276 I Current F Force Feed Stroke IV Intake valve EFP Electric fuel pump EV Exhaust valve

Current Reduction Time

Fig. 3 Fig. 4 – Pump piston feed stroke, fuel fl ows to rail – Pump piston feed stroke, fuel fl ows to rail until intake – N276 receives short pulse of electrical current from stroke begins engine control module – N276 de-energizes – IV closes. Due to upward motion of pump piston, – IV closes pressure builds up immediately inside pump – EV opens – EV opens

41 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 47 of 57 PageID: 775

Fuel System

Injector

Each fuel injector has six individual fuel openings, The angle of cone of the jet is 50°. These providing better mixture preparation. modifi cations have resulted in reduced HC emissions, particulate matter formation, and oil This also helps prevent “wetting” the intake valves thinning. and the combustion chamber surfaces during injection cycles. Single Port Injector

Multi Port Injector

42 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 48 of 57 PageID: 776

Exhaust System

Turbocharger and Manifold Module

A turbocharger and manifold module is used. It is attached to the cylinder head by clamping fl anges.

Coolant Flow to Radiator or from Auxiliary Water Pump

Charcoal Canister Connection

Pressurized Oil Inlet

Turbocharger Recirculating Valve N249 Coolant In-fl ow from Cylinder Block

43 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 49 of 57 PageID: 777

Engine Management System

Overview of Bosch MED 17.5 System Sensors

Mass Air Flow (MAF) Sensor G70 Intake Air Temperature (IAT) Sensor G299

Engine Coolant Temperature (ECT) Sensor (on Radiator) G83

Engine Coolant Temperature (ECT) Sensor G62

Change Air Pressure Sensor G31

Engine Speed (RPM) Sensor G28

Camshaft Position (CMP) Sensor G40 Engine Control Module (ECM) J623 with Ambient Pressure Sensor Throttle Valve Control Module J338 with Throttle Drive Angle Sensor 1 G187 and Throttle Drive Angle Sensor 2 G188

Throttle Position (TP) Sensor G79 Accelerator Pedal Position Sensor 2 G185

Brake Pedal Switch F63 Clutch Position Sensor G476

Data Bus On Board Diagnostic Interface J533 Fuel Pressure Sensor G247

Intake Manifold Runner Position Sensor G336 Instrument Cluster Control Module J285 Knock Sensor (KS) 1 G61

Heated Oxygen Sensor (HO2S) G39 Oxygen Sensor (O2S) 2 Behind Three Way Catalytic Converter (TWC) G131 Oil Level Thermal Sensor G266 DFM Generator, Cruise Control ON/OFF

44 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 50 of 57 PageID: 778

Engine Management System

Actuators

Motronic Engine Control Module (ECM) Power Supply Relay J271

Engine Component Power Supply Relay J757

Intake Manifold Runner Control (IMRC) Valve N316

Wastegate Bypass Regulator Valve N75

Fuel Pressure Regulator Valve N276

Fuel Pump (FP) Control Module J538 Transfer Fuel Pump (FP) G6

Cylinder Fuel Injectors 1-4 N30-N34

Ignition Coils with Power Output Stages N70, N127, N291, N292

Throttle Valve Control Module J338 with Diagnostic Link Throttle Drive for Electronic Power Connector Control (EPC) G186

Evaporative (EVAP) Emission Canister Purge Regulator Valve N80

Oxygen Sensor (O2S) Heater Z19

Coolant Circulation Pump Relay J151 After-Run Coolant Pump V51

Camshaft Adjustment Valve 1 N205

Radiator Fan Setting 1, PWM Signal Leak Detection Pump V144

45 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 51 of 57 PageID: 779

Engine Management System

Engine Control Module

The 2.0L TSI engine uses the Bosch MED 17.5 The new IFX Tricore processor family has engine control module. The hardware and software suffi cient capacity in reserve to accommodate components have been developed so they can be future advancements in order to meet market used for future projects both for gasoline and diesel requirements. engine applications. Hardware in the engine control module: This allows maximum use with regards to functions and vehicle interfaces independent of the engine – Infi neon IFX Tricore 1766 (Leda Light) combustion confi guration. Examples of this include – 80 MHz system frequency the Electronic Pedal Control and radiator fan – 1.5 MByte internal fl ash activation strategies. – Single chip system

Oxygen Sensor Control Operating Modes A new feature of the MED 17.5 is the deletion of the In all operating ranges of the engine, except directly continuous-duty oxygen sensor. Now, a nonlinear after starting (when the fuel-air mixture is slightly oxygen sensor is installed. The sensor is located richer), the mixture composition is set to lambda 1. between the close-coupled pre-catalyst and the The following operating modes are implemented: underbody catalytic converter. The function of the continuous-duty pre-cat sensor – In Start phase: high-pressure — start of fuel-air has been mapped by the new functions of the mixture engine control module. These maps are generated – For several seconds after Start: HOSP by conducting appropriate tests during engine – Following Warm-Up phase: engine map development. controlled dual injection cycle Advantages: – At coolant temperatures of 176°F (80°C) or higher: fuel injection synchronous with intake cycle only – Fewer potential sources of fault – More cost-effective The intake manifold fl aps open at an engine speed of – Requirements of ULEV are met without 3000 rpm. continuous-duty oxygen sensor – No adjustments needed in customer service or for exhaust emission inspections

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Engine Management System

Substitute Functions in Case of Sensor/Actuator Failure

Symptom in Substitute Power Emergency Case of Failure DTC Entry MIL EPC Signal Limitation Operation No Cruise F63 Yes No No No No No Control G39 No Control Yes Yes No Yes No No G61 No Yes No No Yes Yes No G62 No Yes Yes No Yes No No Radiator Fan Runs G83 No No No No No No Permanently in Setting 1 No Throttle G79/G185 Yes Yes Yes No Yes Yes Response No Throttle G187/G188 Yes Yes Yes No Yes Yes Response No G247 Yes Yes No No Yes Yes High-pressure G336 No Yes Yes No No No No No Cruise G476 Yes No No No No No Control No Power Supply to ECM — J271 No No No No No No Engine Not Running J538 No Yes Yes No No No No No J757 Yes Yes Yes No Yes Yes High-pressure Engine Not Ignition Running Yes Yes Yes No Yes Yes Coils Smoothly Engine Not N30-N33 Running Yes Yes Yes No Yes Yes Smoothly N75 No Yes Yes Yes No Yes Yes N205 No Yes Yes No No No No No N276 Yes Yes Yes No Yes Yes High-pressure N316 No Yes Yes No No No No

Note This table refers to generally occurring faults. It is not a substitute for fault fi nding with the Workshop Manual and the “Guided Fault Finding” function. The parameters specifi ed in the table are subject to deviation depending on fault type. Specifi cations are subject to change due to updating of engine control module software.

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Service

Special Tools

Shown Here are the Special Tools for the Chain-Driven 2.0 Liter 4V TSI Engine:

T10352 For Removing the 4/3-Way Central Valve of the Camshaft Adjuster

T10353 Thrust Piece for Installing the Oil Seal on the Water Pump Shaft

T10354 Thrust Piece for Installing the Oil Seal on the Front Crankshaft (Vibration Damper)

48 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 54 of 57 PageID: 782

Service

T10355 Retainer for Removing the Crankshaft Center Bolt

T10359 Engine Holder for Removing the Engine with Transmission

T10360 Torque Wrench Adapter Used for Removing/Installing the Belt Drive Pulley V.A.G. 1331 Bolt for the Engine Coolant Pump

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Knowledge Assessment

An on-line Knowledge Assessment (exam) is available for this Self-Study Program.

The Knowledge Assessment may or may not be required for Certifi cation.

You can fi nd this Knowledge Assessment at:

www.vwwebsource.com

For Assistance, please call:

Volkswagen Academy

Certifi cation Program Headquarters

1–877–491–4838

(8:00 a.m. to 8:00 p.m. EST)

Or, E-Mail:

[email protected]

51 Case 2:16-cv-02765-JLL-JAD Document 6-6 Filed 08/22/16 Page 57 of 57 PageID: 785

824803

Volkswagen Group of America, Inc. 2200 Ferdinand Porsche Dr. Herndon, VA 20171 Printed in the U.S.A. May 2008 Case 2:16-cv-02765-JLL-JAD Document 6-7 Filed 08/22/16 Page 1 of 2 PageID: 786 EXHIBIT G

Case 2:16-cv-02765-JLL-JAD Document 6-7 Filed 08/22/16 Page 2 of 2 PageID: 787

2010 Scheduled Maintenance Intervals Miles (in thousands) 5/25/45/65/85/105/125 15/55/95 35/75/115 Kilometers (in thousands) 8/40/70/100/130/160/190 25/85/145 55/115/175

Engine Oil/Oil Filter – change oil and replace filter l l l

AdBlue Fluid – fill completely with fresh fluid (maximum capacity: 23 liters) and l Audi Q7 3 0L TDI only l Audi Q7 3 0L TDI only l Audi Q7 3 0L TDI only adapt learned values for AdBlue tank under guided fault finding after filling fluid Cooling System – check level, add if necessary l l

Engine On-Board Diagnostics – check fault memory l A3, A6, S6, A8 only l A3, A6, S6, A8 only Engine Compartment – check for leaks l l Battery – check and replace if necessary l l Dust and Pollen Filter – replace l l l Spark Plugs – replace at 35,000 miles or 3 years, whichever occurs first. A4, A5 and TTS with 2 0L TFSI Thereafter, every 40,000 miles or 3 years, whichever occurs first. engine only

– replace at 55,000 miles or 6 years, whichever occurs first. l 55K only except A4, A5 and TTS Thereafter, every 60,000 miles or 6 years, whichever occurs first. with 2 0L TFSI engine Power Steering Fluid – check, add if necessary l

Air Cleaner – clean housing, replace filter element l 55K only except Audi Q7 4 2L l 75K only Audi Q7 4 2L only

Ribbed V Belt and Tensioner – check condition and replace if necessary l R8 only l Audi Q7 3 6L, R8 only

Ribbed V Belt – check condition, replace if necessary. Check tension of belt drive l 75K only V6 FSI, V6 TFSI (rear belt), 2 0L TFSI, 5 2L V10 FSI, with manual tensioner and retension if necessary. 4 2L V8 FSI only

– replace only the V belt for the compressor drive l 75K only 3 0L TFSI only

Snow Screen for Air Cleaner – clean l A4, S4, A5, S5 and A6 only l A4, S4, A5, S5 and A6 only

Fuel Filter – remove water l Audi Q7 3 0L TDI only

– replace l A3 2 0L TDI only l Audi Q7 3 0L TDI and A3 2 0L TDI only

l USA 125K only Audi Q7 3 0L TDI, Diesel Particulate Filter (DPF) – check ash loading according to manufacturer’s A3 2 0L TDI only l Canada 200,000 km only Audi Q7 work procedure, replace* if necessary. 3 0L TDI, A3 2 0L TDI only

Plenum Panel – remove cover for plenum panel to check water drain and l except A3, Audi Q5 l except A3, Audi Q5 clean if necessary Tires and Spare Wheel – check for wear and damage, check tire pressure, l reset Tire Pressure Monitoring System (TPMS) – check for wear and damage, check tire pressure and l l renewal date of tire repair set (where applicable), reset Tire Pressure Monitoring System (TPMS)

Tires – rotate, reset TPMS l 5K only Wiper Blades – check condition and replace if necessary l l l Wiper/Washer/Headlight Washer – check adjustment and function, l l l add fluid if necessary

Lights – check all lights, check headlight adjustment l A8 only l A3, A6, S6, A8 only

Lights – check all lights via instrument cluster. Check license plate light from l Audi Q7, A4, S4, Audi Q5, the rear of the vehicle TT, A5, S5, R8 only Interior Lights – check all interior lights, glove box illumination, control lights l and MMI (if applicable)

Doors – lubricate doors, check straps and hood latch l A8 only l Except A8

Rear Lid Hinges – lubricate l A8 only l A8 only Service Reminder Display – reset l l l Horn – check function l l Brake System – check for damage, leaks, pad thickness, fluid level l l l Brake Discs – check thickness l Exhaust System – check for damage, leaks l l

Front and Rear Axle – check for excessive play, check dust seals on ball joints l A3, A6, S6, A8 only l and tie rod ends Drive Shaft Boots – check l l Automatic Transmission and Final Drive – check for leaks l l Manual Transmission and Final Drive – check for leaks l l Continuously Variable Transmission (multitronic) – change ATF l

Haldex Clutch – change oil l A3, TT only

DSG/S Tronic – change oil and replace filter element l A3, TT only

– change oil l S4, S5 only Underbody – check for damage and leaks l l Road Test – check braking, kick-down, steering, electrical, heating and ventilation l l systems, air conditioning, ASL Automatic Shift Lock, power accessories and reset driver information display Timing Belt – replace at 110K miles (175,000 km) on Audi TTS or 130K miles (205,000 km) on Audi A3 2.0L TDI only. Check condition of timing belt tensioning system, dampening pulleys, and idler pulleys and replace if necessary. Brake Fluid – replace every 2 years regardless of mileage. Cloth Top – check function and rollover protection every 2 years regardless of mileage (Audi A5/S5 Cabriolet only). *If DPF replacement is not necessary, perform check every 20,000 miles (30,000 km) thereafter until replacement becomes necessary. Subsequent DPF replacement interval is a minimum of 120,000 miles (200,000 km), thereafter. Audi of America, Inc. believes the information and specifications to be correct at the time of printing. Specifications, maintenance intervals, standard features and options subject to change without notice.

Revised 12/10 Case 2:16-cv-02765-JLL-JAD Document 6-8 Filed 08/22/16 Page 1 of 2 PageID: 788 EXHIBIT H

4/29/2016 Case 2:16-cv-02765-JLL-JAD| Saferc ar | National HighwayDocument 6-8 Traffic Safety Administration (NHTSA) Filed 08/22/16 Page 2 of 2 PageID: 789 Search Results ID Number Search Results

Recalls Investigations Complaints Manufacturer 0 Result(s) 0 Result(s) 0 Result(s) Communications 1 Result(s)

Below is a list of Manufacturer Communications issued for this product. Some, but not all of these communications, may involve safety issues. The communications may also include instructions from a manufacturer regarding the repair of a product, however, repairs should only be performed by trained technicians.

Manufacturer Communication No.: TSB­15­10­04 NHTSA ID Number: 10035264 Component(s): ENGINE AND ENGINE COOLING

All Products Associated with this Manufacturer Communication

Vehicle Make Model Model Year(s) AUDI A3 2009 AUDI A4 2009 AUDI TT 2009

Details 0 Associated Documents Manufacturer: Volkswagen Group of America, Inc.

SUMMARY: AUDI: MIL ON; NOISE FROM TIMING CHAIN (DTC P001600). MIL ON; ENGINE DIFFICULT TO START; SOMET MES RATTLE IN ENGINE COMPARTMENT; BANK 1, CAMSHAFT POSITION G40/CRANKSHAFT POSITION SENSOR G28, WRONG ASSIGNMENT STORED IN ENGINE CONTROL UNIT; POSSIBLE DAMAGE TO CAMSHAFT OR CAMSHAFT BEARING SURFACES. *PE

1200 New Jersey Avenue, SE, West Building Washington DC 20590 USA 1 888 327.4236 TTY 1.800.424.9153 6.0.22

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4/29/2016 Case 2:16-cv-02765-JLL-JAD| Saferc ar | National HighwayDocument 6-9 Traffic Safety Administration (NHTSA) Filed 08/22/16 Page 2 of 2 PageID: 791 Search Results ID Number Search Results

Recalls Investigations Complaints Manufacturer 0 Result(s) 0 Result(s) 1 Result(s) Communications 1 Result(s)

Below is a list of Manufacturer Communications issued for this product. Some, but not all of these communications, may involve safety issues. The communications may also include instructions from a manufacturer regarding the repair of a product, however, repairs should only be performed by trained technicians.

Manufacturer Communication No.: SB­15­11­21 NHTSA ID Number: 10038771 Component(s): ENGINE AND ENGINE COOLING

All Products Associated with this Manufacturer Communication

Vehicle Make Model Model Year(s) AUDI A3 2009 AUDI A4 2009 AUDI TT 2009

Details 0 Associated Documents Manufacturer: Volkswagen Group of America, Inc.

SUMMARY: VOLKSWAGEN: MALFUNCTION LIGHT IS ON AND THERE IS NOISE FROM THE TIMING CHAIN. ENGINE IS DIFFICULT TO START AND THERE ARE TWO POSSIBLE TROUBLE CODES STORED. THERE IS POSSIBLE DAMAGE TO THE CAMSHAFT. *RM

1200 New Jersey Avenue, SE, West Building Washington DC 20590 USA 1 888 327.4236 TTY 1.800.424.9153 6.0.22

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Case 2:16-cv-02765-JLL-JAD Document 6-10 Filed 08/22/16 Page 2 of 4 PageID: 793 SB-10045560-1452 Technical Bulletin

Model(s) Year Eng. Code Trans. Code VIN Range From VIN Range To

2.0L All 2008-2013 All All All (CCTA, CBFA)

Condition

15 12 01 July 23, 2012 2028302 Supersedes T.B. V151104 dated December 22, 2011 to remove European exhaust warning light reference in text and add additional model year applicability. Engine Rattling Noises after Start, Engine Doesn't Start, Timing Chain Slipped

Customer may state: • Rattling noises after engine start from front of the vehicle or engine compartment. • Engine does not start. • MIL ON The following entries are logged in the engine control module (ECM):

DTC Description

00022 P0016 Crankshaft Position vs. Camshaft Position Correlation

00808 P0328 Knock Sensor 1 Circuit High Input

Technical Background

Timing chain tension may be incorrect due to tensioner. As a result, the timing chain can skip and causing contact between the pistons and valves.

Production Solution

N/A

Page 1 of 3 © 2012 Volkswagen Group of America, Inc. All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen Group of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher. Case 2:16-cv-02765-JLL-JAD Document 6-10 Filed 08/22/16 Page 3 of 4 PageID: 794

Technical Bulletin

Service

If timing chain is suspect, perform the following: • Complete the DTC entries according to guided fault finding (GFF). • Remove the lower timing chain cover, see Repair Manual Group 15 in ElsaWeb. • Check the timing chain tensioner as follows: • Compress the tensioning rail of the timing chain (illustration 1, No. 2) by hand against the timing chain tensioner (Figure 1, No. 1).

Inset. 1: timing chain tensioner Inset 2: tensioning rail the timing chain arrow: Direction of pressure on the tensioning rail of the timing chain

Figure 1) section of the timing chain drive.

If the piston of the timing chain tensioner cannot be compressed by hand after several attempts (Figure 3, green arrow), further engine diagnosis is required.

Tip: Inspect intake camshaft and camshaft bearing for damage. If the piston of the timing chain tensioner can be compressed in by hand (Figure 2, red arrow) the timing chain tensioner has failed, and further engine diagnosis may be required.

Tip: If engine noises or no start condition remain, inspect pistons and valves for contact damage. If engine damage is noted, cylinder head or engine may need to be replaced.

Page 2 of 3 © 2012 Volkswagen Group of America, Inc. All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen Group of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher. Case 2:16-cv-02765-JLL-JAD Document 6-10 Filed 08/22/16 Page 4 of 4 PageID: 795

Technical Bulletin

Figure 2) Figure 3) Timing chain tensioner incorrect Timing chain tensioner correct

Warranty

Information only.

Required Parts and Tools

No Special Parts required. No Special Tools required.

Additional Information

All part and service references provided in this Technical Bulletin are subject to change and/or removal. Always check with your Parts Dept. and Repair Manuals for the latest information.

Page 3 of 3 © 2012 Volkswagen Group of America, Inc. All rights reserved. Information contained in this document is based on the latest information available at the time of printing and is subject to the copyright and other intellectual property rights of Volkswagen Group of America, Inc., its affiliated companies and its licensors. All rights are reserved to make changes at any time without notice. No part of this document may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, nor may these materials be modified or reposted to other sites, without the prior expressed written permission of the publisher. Case 2:16-cv-02765-JLL-JAD Document 6-11 Filed 08/22/16 Page 1 of 2 PageID: 796 EXHIBIT K

4/26/2016 Case 2:16-cv-02765-JLL-JAD| Saferc Documentar | National Highway 6-11 Traffic Safety Administration (NHTSA) Filed 08/22/16 Page 2 of 2 PageID: 797 Search Results ID Number Search Results

Recalls Investigations Complaints Manufacturer 0 Result(s) 0 Result(s) 1 Result(s) Communications 1 Result(s)

Below is a list of Manufacturer Communications issued for this product. Some, but not all of these communications, may involve safety issues. The communications may also include instructions from a manufacturer regarding the repair of a product, however, repairs should only be performed by trained technicians.

Manufacturer Communication No.: TB­15­11­04 NHTSA ID Number: 10043276 Component(s): ENGINE AND ENGINE COOLING

All Products Associated with this Manufacturer Communication

Vehicle Make Model Model Year(s) VOLKSWAGEN BEETLE 2008­2010 VOLKSWAGEN CC 2009­2011 VOLKSWAGEN EOS 2008­2011 VOLKSWAGEN GOLF 2008­2011 VOLKSWAGEN GTI 2008­2011 VOLKSWAGEN JETTA 2008­2011 2008­2010 VOLKSWAGEN R32 2008­2011 VOLKSWAGEN RABBIT 2008­2010 VOLKSWAGEN ROUTAN 2009­2011 VOLKSWAGEN TIGUAN 2008­2011 VOLKSWAGEN TOUAREG 2008­2011 VOLKSWAGEN TOUAREG HYBRID 2011

Details 0 Associated Documents Manufacturer: Volkswagen Group of America, Inc.

SUMMARY: VOLKSWAGEN: CERTAIN MODEL YEAR VEHICLES ARE EXPERIENCING ENGINE NOT STARTING, MAKING A RATTLING NOISE WHEN ENGINE HAS STARTED, TIMING CHAIN KEEPS SLIPPING AND EXHAUST LIGHT COMES ON. *PE

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