Volkswagen Rabbit Reliability Problems

It appears Volkswagen is close to settling 7 lawsuits regarding defective timing chains and the threat of engine damage.

The proposed settlement includes all consumers who purchased or leased certain 2008-2014 Audi and Volkswagen vehicles that will be determined by the vehicle identification numbers (VINs).

According to the terms, reimbursement amounts will be determined based on the age of the vehicle, how many miles are on the odometer and if the timing chain tensioner, timing chain or engine was replaced."

Reimbursement amounts are highly favoriable to owners who get work done at an authorized VW dealership. Our advice – if something goes wrong with your timing chain or tensioner and you're covered under this settlement, skip your local mechanic and go to an authorized dealer.

Despite VW's best efforts, a timing chain lawsuit will continue in a New Jersey court after the judge denied the automaker's motion to dismiss

. The case is a combination of two other lawsuits in the state, both of which allege VW is concealing known timing chain defects that lead to premature engine failure.

You know that stack of papers they have you sign when you buy a car? Volkswagen's argument for dismissing the case was a hidden clause that says all problems must be taken into arbitration and not in front of jury. Which, let's be honest, is a shady thing to throw into a purchase contract. Luckily the judge ruled those agreements are between the consumer and the dealership, not the automaker.

While a few of the lawsuit claims were thrown own, this is overall good news for consumers who have dealt with (or are worried about) timing chain failure.

Owners of Volkswagen and Audi vehicles have filed a lawsuit claiming there's a defect in the timing chain tensioner system that allows the chain to "jump a tooth" in the camshaft.

Once that happens, the engine could be destroyed. Want to repair it? You'll destroy your bank account too.

The lawsuit focuses on 2008-2013 Audi and VW models equipped with 2-liter TSI or 2-liter TFSI EA888 engines. The plaintiffs say the problems happen well before 120,000 miles (the recommended time to repair them) and can cost upwards of $11,000 to fix.

"The plaintiffs claim Audi and VW not only refused to acknowledge the alleged timing chain problems, but also refused to compensate certain owners for engine repairs. The lawsuit also alleges Audi and Volkswagen didn't offer loaner or replacement vehicles even though the vehicles were useless to owners."

This isn't the first lawsuit to accuse VW of concealing timing chain defects.

A lawsuit filed in New Jersey says Volkswagen's timing chain tensioner has serious defects and can lead to premature engine failure.

According to the plaintiff, in VW's warranty and maintenance schedules the tensioning system is expected to last 120,000 miles without the need for maintenance.

"The VW and Audi A3 vehicles are equipped with EA888 2.0L TSI engines with engine codes CCTA or CBFA. The remaining Audi vehicles are equipped with EA888 2.0L TFSI engines designated with engine codes CAEB, CAEA, or CDNC. The plaintiff says all the engines with these five codes are versions of the EA888 engine and all use the same timing chain tensioning system."

When the tensioning system fails, the results can be catastrophic and lead to out-of-pocket expenses that will make your bank account cry.

This is a big lawsuit, covering many VW and Audi models from the 2008 model year on.