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Monday, January 18, 2016   VOLUME 12 ISSUE 3  
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Subaru Owners Win Compensation For Oil-Burning Cars

Subaru of America Inc. earlier this month agreed to extend warranties and reimburse drivers for certain out-of-pocket costs associated with an alleged defect that causes its vehicles to consume excessive amounts of oil, a proposed class told a New Jersey federal judge. According to Law360, owners of Subaru Forester, Outback, Crosstrek, Impreza and Legacy are getting compensation from Subaru from the oil consumption class action lawsuit filed against them from the alleged defect.

The drivers in the lawsuit told Law360, Subaru has agreed to extend its 5 year, 60,000-mile warranty in respect to the alleged defect to an 8 year, 100,000-mile warranty. SOA will also reimburse certain expenses for vehicle repairs, rental cars, towing and the purchase of up to six quarts of oil per vehicle with appropriate proof. According to the report, the drivers urged the court to grant preliminary approval of the settlement and schedule a final approval hearing.

The Subaru owners said the agreement will provide most proposed class members with the same amount of compensation they would have obtained if the case went to trial. Subaru also agreed not to oppose up to $1.5 million in attorneys’ fees and costs associated with the case. They will also pay the nine named plaintiffs $3,500 each in incentive awards. Matthew D. Schelkopf, an attorney for the drivers, told Law360, “We are very pleased with the terms of the proposed relief for class members under the settlement agreement.”

In the report by Law360, according to the proposed settlement of the lawsuit, Subaru also agreed to offer a free oil consumption test for all current owners and lessees and perform any technical service bulletin repairs connected to the alleged defect. Yet this is not anything more than Subaru has already been doing.

The vehicles affected most seem to be 2011-2014 Forester (2.5-liter engine), 2013 Legacy (2.5-liter engine) 2013 Outback (2.5-liter engine) 2012-2013 Impreza (2.0-liter engine) and 2013 XV Crosstrek (2.0-liter engine).


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