VW, Audi Agree To Fix Sludge-Damaged Engines

Law360, New York (September 14, 2010, 2:38 PM EDT) -- Volkswagen AG and Audi AG have agreed to cover maintenance costs for car owners who say their engines are prone to oil sludge buildup even when they follow maintenance guidelines suggested by the German carmakers.

Under a settlement agreement filed Monday in the U.S. District Court for the District of Massachusetts, Volkswagen and Audi agreed to cover 100 percent of the sludge-related maintenance costs for owners or lessees of Audi A4s from model years 1997 through 2004 and Volkswagen Passats from model years 1998 through 2004...
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