Toyota Faces Lawsuit Over Transmissions

Issue #177

Today, we discuss a massive lawsuit against Toyota.

However, most importantly, we thank you for another year of great readership. We’ve grown so much and it’s all thanks to you!

We hope you have a great 2026!

Market News

• EVs might have lost appeal in the US, but one hybrid is stealing the spotlight. Here’s more.

• Plug-in hybrids have 80% more problems than ICE vehicles. Read about how it’s more age-related than design-related.

• Arizona proposes eliminating the speed limit, but only under very specific conditions. Here they are.

• The first electric Jeep, the Wagoneer S, held much promise. It doesn’t deliver yet, according to The Drive.

• Toyota is ditching the V6, and its replacement doesn’t seem that motivating. Read more here.

Safety and Recalls

• Hyundai issues a recall for the Tucson SUV, advising owners to park it far away (motivating).

• Toyota issues a “Do not drive” warning due to a serious fire risk and recalls 55,000 vehicles.

• Mercedes-Benz recalls its EVs because they are too quiet for pedestrians.

Car Culture

• MotorTrend rates the best and most disappointing cars in 2025, with the Toyota Rav4 Hybrid earning a surprising rank. Here’s more.

• What cars are readers looking forward to in 2026? Jalopnik compiles an interesting list.

• One of the least-known Lincoln models shows why badge engineering doesn’t always work. Here’s more.

• North Dakota and New Jersey have some of the worst drivers in America. Can you guess the others?

• Here are some of the craziest auctions at Bring a Trailer in 2025. Yes, they include a tank.

Video Of The Week

How did Jeep lose its way? This video explains.

In The Know

Does Toyota’s Lawsuit Prove All CVTs Suck?

There are very few automakers in the US that don’t use CVTs. Mazda was one of the most “mainstream” brands to do so until the CX-50 hybrid introduced the e-CVT.

By the way, it’s this very transmission that hinders the CX-50’s driving experience, as you can read here.

Here are the other brands that refuse to put a CVT in their cars.

If you want to learn more about why the CVT is so “controversial,” you can check out one of our earliest newsletter issues here.

In short, the CVT is great because it’s small, easy to install, and (usually) offers great fuel economy. The downsides are that it’s boring, unsporty, and can be unreliable.

In the past years, we’ve often associated faulty CVTs with Nissan, leading to its own lawsuit, as you can read here. Although some say the claims are exaggerated.

Now it’s another Japanese automaker in the hot seat: Toyota. One lawsuit claims that Toyota’s torque converters and software can cause early transmission failure. CarComplaints does an excellent job explaining it here.

Originally, there was one lawsuit. However, a second one has surfaced, claiming that Toyota knew about the issues from years ago (a decade, to be exact) and did nothing.

Here’s the lawsuit in detail. Plus, it links to service notices from Toyota dating from 2016, as evidence that the company knew about the problems.

The two major defects, as CarComplaints explains above, are the torque converters and the software. The torque converters tend to overheat, which could correspond to a redesign of the older six-speed transmission.

At the same time, the software favors upshifts to save fuel. However, these upshifts can cause the torque converter to work more than it has to.

As expected, Toyota claims it has done nothing wrong, even as evidence continues to pile on top.

As we read more about the case, we did see one trait.

The transmission at fault is the UA80E, and these are the cars at fault.

• 2017-present Toyota Highlander

• 2024-present Toyota Grand Highlander

• 2018-2024 Toyota Camry

• 2017-2020 Toyota Sienna

• 2019-2022 Toyota Avalon

• 2019-present Toyota RAV4

• 2023-present Lexus RX 350

• 2021-present Lexus ES 250

• 2019-present Lexus ES 350

• 2022-present Lexus NX 250 and NX 350

• 2024-present Lexus TX 350

While the Toyota RAV4 is considered a compact SUV, most of these models are midsize. They’re on the heavier end of the scale for compact and midsize vehicles.

So, the combination is fatal for the transmission. A heavier vehicle with a poor design could only mean disaster.

This doesn’t mean that all Toyota CVT transmissions are flawed. Case in point: here’s a list that names the Toyota Corolla as an excellent option for cars with a CVT transmission.

That’s the key and something we’ve said before. The CVT works great when it’s in a light vehicle that does no towing or hard work. Otherwise, you’re in for trouble.

The problem is that the entire automotive industry is cramming CVTs into every model possible.