General Motors is accused of falsely claiming certain Chevrolet Silverado 1500 models were reliable and safe despite being aware of a number of engine issues.
Consumers purchased their vehicles at inflated prices believing these misleading statements, court documents released by the Federal Court this week say.
The class action, which was filed in December, seeks compensation and damages for those who purchased an affected Silverado from January 1, 2019 until the lawsuit was commenced.
The vehicles were advertised to be of superior quality than other four-wheel-drives available in Australia and sold at a higher price point, the class action alleges.
Lead applicant Bradley James Tippett purchased a jet black 2023 model Silverado ZR2 pick-up for over $157,000 in October of that year.
He claims he paid more than the true value of the vehicle, as well as additional financing costs, GST and stamp duty, because he was misled about the pick-up's quality.
The Australian and US arms of General Motors have been sued as has one of its subsidiaries Premoso.
The firms are accused of selling the Silverado vehicles despite knowing about defects in the valve lifter oil manifold (VLOM) and the crankshaft assembly.
The VLOM is a component of an electronic system designed to reduce fuel consumption and exhaust emissions.
Defects cause unstable engine idling, loss of engine power, uncontrolled engine speed and engine stalling, court documents say.
Consequences include everything from stuck parts and abnormal wear and tear to catastrophic engine failure, the pleadings allege.
General Motors allegedly sent service bulletins to authorised dealers outlining the defects and how to manage them.
These documents were not given to customers, the class action alleges.
In January 2025, the US National Highway Traffic Safety Administration began investigating engine failures relating to alleged defects in the crankshaft assembly.
Three months later a safety recall report was issued about the Silverados, the lawsuit says.
Issues with the crankshaft allegedly caused engine knocking, high revs, abnormal shifting, sudden engine breakdown and engine bay fires.
While this defect affected three per cent of all vehicles, it was undetectable without some form of destructive inquiry, the lawsuit claims.
General Motors is accused of continuing to sell its vehicles despite knowing of crankshaft problems since at least February 2022.
The lawsuit will next come before court on June 9.
General Motors has been approached for comment.
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