Audi and Volkswagen's 1.8 liter turbo-charged engines may be defective causing premature sludge buildup in the engine.

This is an investigation and pending class action lawsuit against Volkswagen of America, Inc. (Volkswagen) and Audi of America, Inc (Audi).

This Audi and Volkswagon vehicles involved are model year 1997 through 2004 A4 Audi vehicles equipped with 1.8 liter turbo-charged engines and/or model year 1998 through 2004 Volkswagen Passat vehicles equipped with 1.8 liter turbo-charged engines

Volkswagen and Audi violated the New Jersey Consumer Fraud Act by failing to disclose, despite their longstanding knowledge of the problem, that engines in these vehicles are predisposed to the formation of harmful sludge and deposits that can cause oil starvation and very serious and expensive damage to engines. The class action lawsuit also alleges that Volkswagen and Audi knew, but failed to disclose, that this engine problem in class vehicles emanates from their defective engine design and/or incorrect oil recommendations in the owner's manuals and maintenance manuals supplied by defendants. Finally, the class action lawsuit alleges that Volkswagen and Audi's August 2004 "warranty extension" misrepresents the nature and cause of the engine problem in these vehicles and fails to adequately redress the engine problem.