177,000 Volkswagen Atlas Vehicles Recalled Over Engine Fire Risk

Written By: Jessica Anvar Stotz
Legally Reviewed By: Jessica Anvar Stotz

1% or approximately 1,770 VW atlas’s are estimated to be affected by this issue. Volkswagen has issued a recall for more than 177,000 Atlas and Atlas Cross Sport SUVs from the 2024 and 2025 model years due to a potential engine fire hazard.

The problem arises from a plastic engine cover that, if not properly reinstalled after servicing, can shift out of place and come into contact with hot components such as the exhaust or turbocharger.

This contact can cause the cover to melt, increasing the risk of a fire.

Volkswagen is addressing the 2025 Volkswagen Atlas Engine Fire Recall Problem by removing the plastic engine cover from all affected models as part of a recall fix.

If you own a recalled Atlas or Atlas Cross Sport, we recommend having this service completed as soon as possible.

Warning signs of the issue include a burning smell coming from the engine bay, which may indicate that the cover has already begun to melt.

If you notice this, schedule an inspection with your Volkswagen dealership immediately.

What Causes the VW Atlas Engine Fire Problem?

The engine fire risk in Volkswagen Atlas and Atlas Cross Sport SUVs stems from an improperly installed plastic engine cover.

If the cover is not correctly reattached after servicing, it can shift and come into contact with extremely hot components, such as the exhaust system or turbocharger.

This contact can cause the plastic to melt, increasing the likelihood of a fire.

Signs of this issue include a burning smell from the engine bay, particularly when opening the hood, or noticing that the engine cover is out of place.

If left unaddressed, melted plastic could ignite upon contact with high-temperature surfaces, posing a serious safety hazard.

To mitigate this risk, Volkswagen is removing the plastic engine covers from affected vehicles.

Which Atlas Models Are Affected?

The 2025 Engine Fire Recall applies to the 2024 and 2025 Volkswagen Atlas and Atlas Cross Sport SUVs.

If you own one of these models, Volkswagen recommends having the plastic engine cover removed by a dealership to eliminate the risk of fire. This service is provided at no cost, making it essential for ensuring your vehicle’s safety.

Does Volkswagen Have a Fix?

Yes, as part of a recall remedy, dealerships are removing the plastic engine cover from affected Atlas and Atlas Cross Sport SUVs.

This eliminates the risk of the cover shifting and making contact with hot engine components, preventing potential fire hazards.

If you own one of these vehicles, scheduling an appointment with your local Volkswagen dealership is the best way to ensure your SUV remains safe.

How the Lemon Law Can Help with Engine Issues

If your Volkswagen Atlas or Atlas Cross Sport has experienced repeated engine-related problems under warranty—such as issues stemming from the recalled plastic engine cover—you may have legal options under the Lemon Law.

Consulting with a lemon law attorney can help you determine whether you qualify for a replacement vehicle or a refund, including reimbursement for expenses like towing fees and legal costs.

Here’s a look at the average lemon law settlements for Volkswagen vehicles in recent years:

*Please be advised that the figures depicted in the chart are estimates that are derived from previous case results and should not be considered a guarantee or prediction. Each case is distinctive and necessitates tailored legal counsel.

The Lemon Law Experts Can Assist You!

If your Volkswagen Atlas or Atlas Cross Sport has experienced repeated engine-related issues, you may be entitled to relief under the lemon law.

The engine cover defect poses a serious safety risk, as melted plastic can come into contact with extremely hot components, increasing the potential for engine fires.

While Volkswagen has issued a recall to remove the cover, this does not account for any ongoing issues owners may have already experienced.

If your vehicle has required multiple repairs for engine-related concerns—whether related to this defect or not—you could have a strong Lemon Law claim.

Many vehicles with far less severe issues qualify for Lemon Law protection, making it critical to understand your rights.

A skilled lemon law firm like the Lemon Law Experts, can assess your situation, determine whether your case qualifies, and help you pursue compensation, a refund, or a vehicle replacement.

With over a decade of experience and a track record of successful cases against major automakers, including Volkswagen, the Lemon Law Experts have helped thousands of consumers recover millions of dollars in compensation. For a free consultation, contact the Lemon Law Experts today.