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Volvo Owner Files Lawsuit Over Depreciation of His Hybrid Car Following Recall Announcement

In March, Volvo announced a global recall of nearly 73,000 vehicles due to the risk of a short circuit while the car is parked with a fully charged battery. Now the company is facing not only technical difficulties in fixing the problem but also a lawsuit in Pennsylvania over this defect, albeit for different reasons.

A class action lawsuit, filed in the U.S. District Court for the Eastern District of Pennsylvania, accuses the manufacturer of violating laws regarding the production, marketing, sale, and servicing of hybrid models. The plaintiff, B. Saleh, claims that Volvo knew about the problem but concealed it from customers.

Saleh owns a 2020 Volvo XC60 and states that he was not warned about potential battery issues at the time of purchase. While this might have happened because the manufacturer itself was unaware of the defect at that time, the lawsuit states that owners have already suffered financial losses due to vehicle depreciation. Even a successful recall, according to the plaintiffs, will not prevent the drop in market value.

According to the lawsuit, the problem arises from a potential short circuit in the battery pack. Unlike the classic layout, the power cells in these models are placed along the transmission tunnel, not under the trunk. In the event of a short circuit, this could trigger a “thermal runaway.” The plaintiffs believe the cause of the defect to be errors in design or manufacturing.

The recall procedure involves inspecting battery cells, updating software, and potentially replacing a module. However, as stated in the lawsuit, this will require significant time costs from the owners. Saleh is also concerned about the costs of transporting the car to a service center, which could reach $4.75 per mile.

The lawsuit covers owners and lessees of 2020-2021 S90, 2020-2022 S60, 2020-2022 V60, 2020-2022 XC60, 2020-2022 XC90, and 2022 V90 models. The plaintiffs are demanding a jury trial and compensation for damages.

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