2021 Volvo XC90 Engine Problems

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.

I plugged my usb to usb-c charging cable into my iphone 20 seconds after starting the vehicle. I proceeded to exit my driveway when the infotainment screen went completely blank and the same thing to the driver's display 10 seconds later. I drove to the end of my street to a stop light where the car completely shut off and automatically restarted within a few seconds. I was traveling with my wife and [XXX] daughter. I have yet to reproduce the problem but have an appointment scheduled with the dealership later this week. Zero warnings or messages were present before, during or after the incident. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

Vehicle is lurching on slow acceleration in Hybrid Mode. For example, lurching occurs when pulling away from a stop sign, pulling out into traffic, pulling into a parking spot. Issue started beginning of January 2023. In February Fields Volvo Service diagnosed issue as a software problem (Code IEM-P287100) and that Volvo hasn't written the software yet. Fields Volvo Service said software update should be available in Quarter 2. Advised that I do not drive my car in Hybrid Mode. I own a hybrid vehicle that I have been told not to drive in Hybrid. Unfortunately, Hybrid is the default mode so upon each start I have to manually change mode to AWD. There is also lurching in AWD on slow acceleration (not as bad as in Hybrid). On several occasions while driving in AWD the vehicle will spontaneously change the mode back to Hybrid resulting in decreased or no acceleration and lurching. This has happened several times in parking lots (minimal fear for safety) but also several times while pulling into traffic (e.g., making left hand turns which require acceleration) and acceralerating on onramps to the freeway (definite fear for safety). Problem has been experienced by sales staff at Fields Volvo because we are trying to get rid of the car because it is still under warranty (36,000 miles). Fields Volvo has not gotten back to us as to whether they will buy back the car. Volvo USA has been contacted via phone and email about the issue. I have received no response.