Volvo XC40 Recharge Powertrain Control System Lawsuit: Do You Have a Claim?

In late June of 2025, the owner of a Volvo XC40 filed a class action lawsuit against Volvo where he alleged that Volvo knew about a significant defect in their vehicles and sold them to consumers anyway.

Specifically, the impacted vehicles allegedly have a powertrain problem resulting in surging and lurching while driving.

Volvo had not issued any recalls specifically for their powertrain, but there were recalls several years ago for the high-voltage system disconnecting that may have resulted in those problems occurring.

To find out more about this ongoing lawsuit and the problems with the Volvo XC40 Recharge, continue reading!

What’s Wrong with the Volvo Powertrain Control System?

According to the lawsuit, there are quite a few problems with the Volvo XC40 Recharge, but the powertrain control system is the most aggressive and dangerous.

Because the Recharge is an electric vehicle, its electrical systems are fundamental for the smooth operation of the vehicle.

The class action alleges that a software defect in the system results in the transmission suddenly losing power, potentially even without the driver having their foot on the pedal.

The lawsuit also says that slower maneuvers, like moving through parking lots or backing up, are more likely to trigger the failure.

These losses in power make the vehicle unsafe, since it can be both unpredictable to the driver as well as to others on the road.

Which Volvo Models Are Affected?

The class action lawsuit includes any 2020-2024 Volvo XC40 Recharge vehicles, meaning those are the models likely to be affected by this problem.

If you own one of these vehicles, and especially if you have been noticing problems driving or with your powertrain, your vehicle may contain the defect mentioned in the class action.

The interaction between hardware (the powertrain itself) and the software controlling it is ultimately the cause of the problem, alleges the lawsuit.

Has Volvo Released a Recall or TSB?

Volve has issued a number of recalls for the impacted vehicles, but the majority of them are unrelated to the powertrain or the electrical system that controls it.

The most relevant recalls took place for the 2021 and 2022 Volvo CX40 Recharge, which was titled “High Voltage Disconnect May Cause Drive Power Loss” and has NHTSA Campaign Number 21V109000.

In that recall, Volvo identified that the Battery Energy Control Module microprocessor could suddenly reset and cause the high voltage system to disconnect.

This could plausibly be the cause of the power train losing power, as the powertrain is connected to that high voltage system that can be disconnected.

Can You Join the Class Action or File a Lemon Law Claim?

If you are experiencing the same issues with your Volvo and your Volvo is in the group of impacted vehicles, you might be eligible to join the class action.

As a reminder, that group of vehicles is the 2020-2024 Volvo XC40 Recharge electric vehicle group. Joining a class action means that your potential claim is consolidated with the claims of others facing the same issue.

If the claim is successful, everyone in the impacted class receives a portion of the settlement. At the same time, a class action might not serve your personal needs as a consumer as well as an individual lemon law claim.

Individual lemon law claims are between you and the manufacturer of your vehicle, where you have specific repair-resistant defects.

If you successfully bring your lemon law claim, the manufacturer will refund you what you paid for the vehicle or replace it with a similar make and model. Below you will find some more of the benefits of each legal route.

Benefits of Joining a Class Action

Joining a class action lawsuit for vehicle defects can offer significant advantages to consumers facing widespread issues.

When a large number of drivers experience the same problem—such as faulty transmissions, defective engines, or failing safety systems—a class action allows them to pool their resources and take collective legal action against the manufacturer.

This often leads to stronger negotiating power, as the sheer number of affected consumers increases pressure on the automaker to settle or resolve the issue.

One of the biggest benefits is cost efficiency. Class actions are typically handled on a contingency basis, meaning participants don’t pay legal fees upfront.

This makes it easier for individuals to pursue justice without worrying about out-of-pocket expenses. For consumers who want accountability but lack the time or resources for a solo lawsuit, joining a class action can provide a practical, low-risk path to compensation and change.

Benefits of Filing an Individual Lemon Law Claim

Filing an individual lemon law claim offers distinct advantages for consumers dealing with serious vehicle defects.

Unlike class actions, where compensation is often distributed among a large group, an individual claim allows you to pursue the full value of your case.

This means you could receive a complete refund, a replacement vehicle, or cash compensation tailored to your specific situation—rather than a smaller settlement distributed across each member of the class.

Another major benefit is speed. Class actions can take years to resolve, but individual lemon law claims often move much faster, especially with the help of an experienced attorney.

You have more control over the timeline, the negotiation process, and the outcome. Plus, if your case is successful, most state lemon laws require the manufacturer to cover your legal fees and costs—meaning you won’t have to pay out of pocket for legal representation.

An individual claim also allows you to highlight the unique problems you’ve faced, such as safety concerns, repeated repair visits, or time lost without your vehicle.

If your car is still under the original manufacturer’s warranty and the defect hasn’t been fixed after a reasonable number of attempts, an individual lemon law claim is a powerful, direct way to demand the compensation you deserve.

Contact the Lemon Law Experts Today

If your vehicle has a serious defect that keeps coming back, it might be frustrating to wait for a class action to solve the problem on someone else’s timeline.

You don’t have to settle for a small payout or wait years for a resolution. By filing your own lemon law claim, you take control—and could be entitled to a full refund, a replacement vehicle, or cash compensation that actually reflects your experience.

If you are dealing with a defective vehicle, contact the Lemon Law Experts today. Our team of experienced attorneys will assist you in bringing your claim: contact us today by filling out our online form or by calling (877) 885-5366.

Take action now and fight for the compensation you deserve.