NHTSA Complaint #11717923 — 2021 VOLVO XC90

The ERAD (Electric Rear Axle Drive) transmission on my 2021 XC90 T8 Recharge has suffered an internal failure at approximately 112,550 miles. The vehicle makes loud grinding and slamming noises from the rear drivetrain and locks up when attempting to drive, making the vehicle completely undrivable. The dealership (Volvo Cars Gilbert, AZ) diagnosed the ERAD clutch as slamming and suspects internal gears are missing teeth. A software update was attempted but did not resolve the mechanical failure. The ERAD transmission needs full replacement at a quoted cost of $5,211.56 (part number 32324105-9). This is a known failure point on the T8 platform and Volvo has redesigned this component (ERAD2) for newer models due to reliability issues with the original design. This failure presents a safety concern as the rear drivetrain can lock up unexpectedly during driving. This ERAD failure occurred alongside two other hybrid system component failures within a 3 month period: the High Voltage Coolant Heater (HVCH) and the vehicle batteries (VCM and main), suggesting a systemic hybrid system reliability problem.