When Terri-Anne Smith decided to go green by choosing a plug-in hybrid, she never imagined she’d be left with a repair bill bigger than some used cars.
The 37-year-old mum from Rugby, Warwickshire, simply wanted to make a more sustainable choice for her family.
But less than five years later, that eco-friendly decision turned into a major financial and emotional burden.
Terri-Anne bought a Volvo XC60 T8 SUV for around £40,000 back in 2021.
It was nearly new at the time, having only served as the dealership manager’s day-to-day car.
She picked it for its electric driving capability and Volvo’s reputation for reliability.
Fast forward to early 2025, and the car’s hybrid system failed—leaving her stuck with a £7,500 repair bill and no support from Volvo.
The ERAD Breakdown That Sparked the Whole Drama
The part that failed is called the ERAD—short for electric rear axle drive.
It’s the component that allows the SUV to run on electric power in the city and switch to petrol on longer drives.
But this bit of technology has earned a bad reputation among Volvo owners.
It often fails well before the end of a car’s life, and unfortunately for Terri-Anne, her car’s ERAD gave up the ghost just four and a half years in.
This couldn’t have come at a worse time. Her finance agreement was nearly up, and she had the option to return the car or pay a final £18,500 to keep it.
But while the car sat broken at a Volvo garage in Hinckley, she had no choice but to pay off the finance deal just to resolve the dispute.
Volvo Washes Its Hands, Blames the Owner
When Terri-Anne contacted Volvo hoping for help, she was stunned by their response.
The company blamed her for not servicing the car at an official Volvo dealership.
She had been using a trusted local garage in Rugby—the same one that maintains her husband’s business vans.
“I had no idea I had to service it with Volvo,” she said.
“No one ever told me that failing to do so could lead to this kind of problem.” According to Volvo, skipping their network meant missing essential software updates.
Even though Volvo applied those updates during the diagnosis, the ERAD still didn’t work.
So with no warranty and no goodwill offer, she was left staring down a massive bill.
A Nightmare on the School Run
For weeks before the breakdown, her once smooth school runs turned into embarrassing and stressful rides. “It was making this awful grinding noise,” she recalled.
“Trying to pull out from junctions with my two kids in the back—Ted, seven, and Auro, four—was terrifying.
It felt like the car was going to die in traffic.”
The situation left her emotionally drained. “I usually handle things well,” she said.
“But I had to hand this over to my husband. I just couldn’t cope with the stress anymore.”
She’s Not the Only One
After digging into the problem online, Terri-Anne found she was far from alone.
The ERAD issue has been widely reported in online forums and Facebook groups.
Many Volvo hybrid owners have shared similar stories—expensive repairs, no support from the company, and a sense of betrayal.
One such owner, Matthew Dean, even created a Facebook group to document these failures.
He faced a similar battle after buying a used XC90 T8.
Despite having full Volvo service history, he got no help when his ERAD failed after just one independent service visit. His repair quote? £8,000.
Volvo’s Official Response: No Goodwill, No Apology
Terri-Anne tried appealing to Volvo’s UK head office.
She hoped they’d consider a goodwill contribution to cover at least part of the cost. But the answer was a flat-out no.
In a letter, Volvo stated: “This is because your XC60 is nearly five years old and has no service history within the Volvo network.”
Eventually, the dealership did agree to buy the car from her for £22,000, minus the repair costs.
After the work ended up being cheaper than quoted, she came out just over £800 in the black.
Still, she called the entire experience “extremely stressful” and vowed never to buy from Volvo again.
Calling Out What Feels Like a Company-Wide Cover-Up
Terri-Anne believes Volvo is brushing the issue under the rug to avoid opening a floodgate of repair claims.
“The garage in Hinckley told me it’s not the first ERAD failure they’ve seen,” she said. “So clearly, it’s a known problem.”
Her frustration only deepened when she saw post after post from other hybrid owners stuck in the same boat.
“It feels like a money-making scheme,” she said. “If you don’t service with them, your car isn’t protected.
And when the part fails, you’re forced to pay up or walk away.”
Is It a Lack of Responsibility or a Sales Strategy?
Terri-Anne questions whether Volvo is simply dodging responsibility or strategically profiting from customers’ misfortune.
“Either they’re doing this to generate revenue, or they just don’t want to own up to a major problem with their cars,” she said.
She now plans to report Volvo to the Motor Ombudsman in hopes of holding the company accountable for what appears to be a widespread issue.
Volvo Stays Quiet on ERAD Failures
When asked about the wider pattern of ERAD problems, Volvo declined to comment.
The only statement they offered was that the dealership and Ms. Smith had reached an agreement over her vehicle.
Meanwhile, industry publication WhatCar? recently named the latest version of the XC60 T8 as one of the top ten most reliable hybrids.
But even their report noted that one in seven owners had faced reliability issues—though those cases were covered under warranty.
A Bitter Lesson for an Eco-Conscious Driver
In the end, Terri-Anne regrets her decision to trust the Volvo brand.
She simply wanted to make a more sustainable choice without sacrificing reliability.
Instead, she got a crash course in how manufacturers can leave customers high and dry once the warranty clock runs out.
“If I’d known this part could fail so early and it wouldn’t be Volvo’s problem,” she said, “I never would’ve bought the car in the first place.”