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Ecodrive Daily > Hybrid Vehicles > Volvo is accused of ‘money-making scheme’ after car owner’s electric hybrid model dies after just four years – leaving her with £7,500 bill
Hybrid Vehicles

Volvo is accused of ‘money-making scheme’ after car owner’s electric hybrid model dies after just four years – leaving her with £7,500 bill

June 1, 2025 14 Min Read
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14 Min Read
Volvo is accused of 'money-making scheme' after car owner's electric hybrid model dies after just four years - leaving her with £7,500 bill
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A Volvo hybrid proprietor was saddled with a £7,500 restore invoice and a automotive she did not need after its electrical motor packed in after lower than 5 years – prompting accusations the Swedish agency is operating a ‘money-making scheme’ on eco-conscious homeowners.

Terri-Anne Smith, 37, purchased the high-tech XC60 T8 SUV for round £40,000 in 2021 – snapping it up lower than a 12 months from new after it had been used because the dealership supervisor’s day by day runabout.

However the mom of two, from Rugby, Warwickshire, was left with a gargantuan invoice after a chunk of hybrid equipment with a popularity for unreliability packed in on the finish of February – 4 and a half years into its life.

Often known as ERAD – brief for ‘electrical rear axle drive’ – the electrical tech is supposed to permit the automotive to be pushed on battery energy on the town, with a petrol engine kicking in on high-speed motorway journeys.

However the half is infamous amongst Volvo homeowners for its behavior of failing. However, the Swedish agency washed its palms of any duty when Ms Smith complained – as an alternative blaming her for not servicing it at a Volvo storage instantly.

She had leased the automotive on a four-year finance cope with a assured ‘balloon’ worth of £18,500 to pay on the finish if she wished to maintain it.

She finally needed to pay it because the motor sat within the storage whereas her dispute raged on regardless of wanting rid of it. She has sworn by no means to purchase from the corporate once more.

‘It has left me extraordinarily anxious, extraordinarily careworn, extraordinarily indignant,’ she informed MailOnline.

‘I normally deal with issues fairly properly however I needed to hand this over to my husband. I informed him, “I can not cope with Volvo, I can not cope with the stress of this, I’m fighting all of it.”‘

Terri-Anne Smith with husband Lincoln and sons Ted, seven, and Avro, 4

She bought this Volvo XC60 T8 when it was lower than a 12 months outdated – and located herself with a £7,500 restore invoice lower than 4 years later

The ERAD (electrical rear axle drive) system is supposed to make the automotive extra environmentally pleasant – however has given many house owners complications (pictured: a YouTube video investigating a ‘knocking’ noise coming from the unit)

Ms Smith picked the plug-in hybrid due to its potential to run on electrical cost alone – and what she thought was the agency’s popularity for cast-iron dependability.

‘I do not wish to say I am a little bit of an eco-warrior however I wished to contribute to lowering my emissions so I assumed, let’s do one thing good and get a hybrid,’ she stated.

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‘I wasn’t operating it by a enterprise, I wasn’t saving tax or something. I simply wished to attempt to do a bit of excellent, actually.’

For nearly 4 years, the Nordic hatchback was fuss-free, ferrying concerning the household – together with husband Lincoln and their sons Ted, seven, and Auro, 4 – in consolation and magnificence.

However on the finish of February, weeks earlier than the lease was on account of finish, the ERAD unit started making a horrible grinding noise – that felt as embarrassing on the college run because it was unsafe, struggling to drag out of junctions amidst transferring site visitors.

‘It was fairly scary with two younger kids behind my automotive, and making an attempt to set off from a junction it was virtually stopping and dying,’ she recalled.

‘I bear in mind a few days doing the college run and it was so embarrassing – the noise, individuals staring.

‘It was as if somebody pressed a button at Volvo headquarters. It was like, “oh, the four-year interval’s developing”, and the automotive simply went into limp mode.

‘I had stated it was like any individual was having fun in Volvo.’

Ms Smith took the automotive right into a Volvo storage in Hinckley, the place mechanics recognized the ERAD subject.

However they informed her upfront that it could not be lined as a fault as she had not been utilizing their very own dealerships to have the automotive serviced – as an alternative utilizing a neighborhood storage in Rugby that maintains the vans for her husband’s agency, Customized Warmth.

Terri-Anne had purchased the automotive as a reliable runabout, believing Volvo had a popularity for reliability (pictured together with her household)

Nevertheless, she has vowed by no means to purchase from the Swedish marque once more after it struggled to drag out at junctions with Ted and Avro within the again (pictured together with her sons)

And with no guarantee to fall again on, she was handed a £7,500 restore invoice she refused to pay.

She continued: ‘They stated it hadn’t had the software program updates – that is particularly what they stated.

‘Now, that is my naivety, however I’ve by no means had a hybrid earlier than and there was by no means any form of warning that we needed to have it serviced with Volvo, or that there can be repercussions.’

The agency did apply software program updates to the automotive however the ERAD continued to fail. Stressed, Ms Smith turned to the web for solutions and located she was removed from alone in experiencing the problem.

She found that ERAD points are so widespread that search outcomes for Volvo ERAD are populated with complaints about their infamous tendency to fail.

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Aggrieved homeowners have even clubbed collectively to attract consideration to the issue.

Matthew Dean, who based the Volvo ERAD Points Reporting Group on Fb, was given equally brief shrift after he purchased a used XC90 T8 that had all the time been serviced at Volvo garages.

After taking it to an impartial storage as soon as, Volvo did nothing to assist when his ERAD gave up the ghost and handed him an £8,000 bill.

He finally paid £1,400 beneath his prolonged guarantee – however says the corporate must be doing extra to assist homeowners being handed large payments.

‘Volvo UK couldn’t have been much less ,’ he informed MailOnline.

He shared a file of submissions from different hybrid homeowners displaying automobiles being shoved onto transporters after breaking down.

The Volvo ERAD Points Reporting Group shared examples of members’ automotive woes with MailOnline

The difficulty is widespread sufficient that internet searches for Volvo’s ERAD system leads with outcomes describing its unreliability (pictured: one other Volvo proprietor’s stricken hybrid)

Volvo proprietor Matthew Dean’s eye-watering restore invoice of just about £8,000 to switch the ERAD unit in his personal automotive

Volvo hybrid fashions are identifiable by a ‘T8’ designation (pictured: Terri-Anne Smith’s XC60 T8)

MailOnline’s personal analysis reveals numerous posts on Volvo homeowners’ boards and social media teams reporting comparable points – and in lots of circumstances, the corporate refused to assist.

Ms Smith’s personal makes an attempt to attraction to Volvo’s higher nature resulted in failure after its UK head workplace rejected her request for a goodwill contribution in the direction of her repairs – after initially wanting right into a case involving one other older automotive.

‘On this event, Volvo Automotive UK has determined to not contribute any goodwill in the direction of the restore prices,’ it stated.

‘It is because your XC60 is almost 5 years outdated and has no service historical past throughout the Volvo community.’

Sensing defeat, Ms Smith paid up. Following some deliberations, the agency agreed to purchase the automotive from her for £22,000 minus the restore prices.

She anticipated to be £4,000 within the purple, however Volvo later decreased the invoice after the restore turned out to be cheaper than anticipated. Total, she is simply over £800 higher off and ‘very fortunate’ – albeit nonetheless annoyed.

‘To me, the concept my automotive is just not even 5 years outdated but and for an element to go that quickly in its life? That’s on the producer, not the shopper,’ she stated.

See also  Best hybrid cars to buy in 2025

‘If I had identified after I was this automotive that the ERAD may go throughout the first 5 years and it will not be Volvo’s duty, I might not have purchased it.

‘We’re fairly fortunate that we’re in a state of affairs the place we will discover that cash however this has simply not been very good in any respect. That they had no intention (of serving to).’

She intends to report the producer to the Motor Ombudsman for its failure to assist with what seems to be an endemic drawback with Volvo hybrids.

What she can not perceive, nonetheless, is why the corporate refused to do extra.

Her main principle is that if the corporate had been to confess one fault with ERAD, it could open the floodgates to a cavalcade of claims.

Ms Smith has finally been left £4,000 within the purple after Volvo agreed to purchase the automotive again -minus the restore prices

Volvo’s apology to Ms Smith – by which it admits reviewing the mistaken automotive earlier than telling her it won’t contribute to the gargantuan restore invoice

‘I believe Volvo are very conscious of it,’ she stated.

‘The storage in Hinckley did acknowledge it is not the primary ERAD failure they’ve come throughout, so it looks like it is identified.

‘I may very well be very conspiratorial right here and suppose that it is a money-making scheme, as a result of clearly you are making an attempt to generate gross sales by your servicing.

‘When elements fail and other people haven’t got choices, then persons are having to spend more cash on repairs with you.

‘So from a shopper perspective, both you are doing this deliberately to generate income or – or one of the best case situation is that you just’re not taking any accountability to your actions both approach.

‘I do not see why I must be the sufferer of this.’

MailOnline requested Volvo whether or not it recognised the obvious persistent failure of its ERAD elements. The corporate didn’t remark.

However on Ms Smith’s case, a spokesperson stated: ‘Now we have investigated this case and might verify that the retailer has agreed to purchase the automotive from Ms Smith, much less the price of the repairs.

‘The retailer has made a proposal to Ms Smith, which has been accepted.’

A contemporary model of the Volvo XC60 T8 was named the tenth most dependable hybrid automotive in the marketplace at the moment by WhatCar journal in December.

The journal did, nonetheless, observe that round one in seven homeowners had skilled reliability issues – all of which had been repaired beneath guarantee.

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Reading: Volvo is accused of ‘money-making scheme’ after car owner’s electric hybrid model dies after just four years – leaving her with £7,500 bill
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