Global Class Actions

In France, large-scale collective actions (i.e., an accumulation of individual claims in the same court proceedings) have expanded in the automotive sector in recent years, contrary to class actions (defined as representative actions brought by an authorized association on behalf of at least two individuals). Class actions are not widespread due to the hurdles of the procedural route they imply. In this respect, 2024 was marked by an increase in product safety and liability claims against car manufacturers with respect to defective car equipment. 

In 2025, the litigation landscape in the automotive industry is expected to be affected by new EU legal reforms.  

First, the economic operators are required to comply with stricter regulatory and safety requirements under the new EU General Product Safety Regulation, which came into force on 13 December 2024. To be best prepared, the GPSR requirements must be properly anticipated and understood to take the appropriate measures and approach vis-à-vis the authorities, notably in case of product safety recalls. 

Second, the product liability rules were amended in a pro-consumer direction through the EU Directive (EU) 2024/2853 of 23 October 2024 on liability for defective products (PLD) that must be transposed into French law before 2026 in order to apply products placed on the market or put into service from 9 December 2026. The liability action has been simplified for the claimant, particularly with regard to access to evidence and proof of defect and the causal link. The scope of the product concerned and damage has been extended, as well as the circle of persons potentially responsible for the defect. This trend emphasizes the importance for economic operators to proactively assess and address potential product-related issues in order to mitigate legal risks.

Lastly, a new French bill reforming class actions and transposing the Directive (EU) 2020/1828 of 25 November 2020 has just been adopted by the French Parliament. A unified legal regime on class action is thus being implemented in 2025, but for the time being there is no certainty on whether the class action procedural route would become more attractive in practice. Yet, this confirms that companies should contemplate their potential litigation risks associated with class actions and collective actions even more closely than before.

The 2024 automotive class action landscape was still dominated by cases related to emissions compliance, particularly Diesel litigation. The vast majority of claims continued to focus on alleged violations in emissions control systems regarding Euro 5 and Euro 6b vehicles, with plaintiffs seeking compensation for purported damages.

One major takeaway from the past year is that addressing lawsuits on an individualized basis has proven to be the most effective strategy. Given the unique factual and legal circumstances of each case, a tailored approach allows manufacturers to present stronger, case-specific arguments. This method enables OEMs to navigate litigation more efficiently and achieve favorable results.

Courts have adopted a more stringent stance against OEMs, particularly highlighted by the Federal Supreme Court’s landmark judgment of 25 September 2024 (Case No. VIa ZR 347/22). This ruling reinforces the trend of rigorous judicial examination, increasing the burden on defendants.

Looking ahead, 2025 is likely to see an increasing alignment of higher regional courts with the strict rulings of the Federal Court of Justice. As a result, case-specific arguments and individual legal strategies will become even more crucial for successful litigation.

Another important trend is the shift in litigation focus. While Diesel cases remain prevalent, there is a growing number of lawsuits concerning newer vehicle models, particularly Euro 6d-temp diesel vehicles and electric vehicles. 

How companies can best prepare:

For OEMs facing these challenges, working with a law firm that combines strong litigation expertise with deep regulatory knowledge is essential. As a law firm with extensive experience in high-stakes litigation and regulatory solutions, we are well-equipped to provide tailored defense strategies for our clients.

To stay ahead, companies should proactively assess compliance risks, develop case-specific legal strategies, and work with experienced counsel who understand both the evolving judicial landscape and technical automotive regulations. With the right legal approach, businesses can effectively manage litigation risks and adapt to the changing regulatory environment.

The automotive industry in Italy has been among the major targets of consumer associations. Class actions against car manufacturers/distributors in Italy have primarily focused on issues related to emissions, safety recalls and defects, consumer rights and misleading advertising and antitrust and competition issues.

In 2024, perhaps the most prominent class action involving a car manufacturer in Italy is the one brought by six consumer associations against a multinational corporation for damages allegedly caused by a delayed recall campaign of defective airbags. This will likely be a landmark case because of the quite complex procedural issues arising following the interconnection of different proceedings seeking both injunctive and redress measures under the two different sets of rules under the civil procedure code and the consumer code. 

The above case has shown that the increased scrutiny over the regulatory obligations of the economic operators regarding product safety and compliance may likely generate litigation by consumers and consumer associations, notably through the recourse to class action/representative actions mechanisms. The damage more often sought is not the one suffered for personal injuries caused by unsafe/defective vehicles or components, but rather the one related to the delayed or incomplete recall campaign. This makes it easier to have the class certified as meeting the requirement of homogenous rights and exposes economic operators in the automotive industry to higher litigation risks. To mitigate those risks, economic operators should enhance traceability of the corrective measures implemented, including recall campaigns, to substantiate and document the risk assessment carried out and the decision process followed so as to show full compliance with all regulatory obligations.

We may expect that the challenges that the automotive industry is facing may generate increased litigation risks in 2025 and beyond, which are related not only to consumer protection/product liability matters but also to a variety of legal issues including cases involving allegations of anti-competitive practices, such as cartels, market manipulation, or abuse of dominant market positions. On 1 April 2025, the European Commission announced that it issued fines totaling €458 million against 15 car manufacturers and the European Automobiles Manufacturers’ Association (ACEA) for their involvement in a cartel concerning end-of-life vehicle recycling. We may expect a new wave of private enforcement litigation will follow, likely pursued by consumers and consumer associations through the recourse to class action mechanisms that contain several pro-plaintiff provisions, including those easing the claimant’s burden of proof (i.e. use of statistical data and presumptions, as well as the disclosure order).

Some of those provisions overlap with the ones set by the Italian law implementing the EU directive on antitrust damages. We may also expect consumer associations will continue pursuing the safety recalls and product defects-related litigation. A consumer association has recently announced that, following initiatives taken by other consumer associations in Spain and France, a new class action will be launched to seek injunctive and redress measures for damage allegedly suffered as a result of defects of the ignition system. Moreover, the implementation in Italy of the new product liability directive containing several pro-plaintiff provisions will further boost the litigation in this space. The best way to prepare for this evolving landscape is to set up an effective risk mitigation strategy through a continued analysis of the litigation risks at every phase of the product cycle to be carried out in coordination by the several business functions of the company (i.e. R&D, quality, marketing, regulatory, communication and legal). 

The current class action system, regulated in the Civil Procedure Act, for the protection of an identifiable group of consumers (i.e., collective interests) or a group of consumers that cannot be individually identified (i.e., diffuse interests), is complex from a procedural standpoint and takes a very long time to process, so entities with legal standing are not making significant use of this mechanism so far.

However, the main Association of Consumers and Users (OCU) has filed seven class actions against OEMs deriving from the so-called Vehicle Manufacturers Cartel, exercising follow-on damage claims.

As an example of the impracticalities of the current system, six of the class actions filed articulate claims for the defense of diffuse interests (for the benefit of an indeterminate group of consumers), whereas one action has been formulated for the defense of collective interests (to the benefit of determined consumers).

Being the same case (i.e., follow-on claims for damages arising from an anti-competitive infringement), this duality should not be possible: either the interests protected are diffuse (indetermined) or they are collective interests (determined).

Hence, an immediate implementation of the Directive would be desirable.

The draft bill, republished 14 March 2025, is exactly the same proposal that was withdrawn in 2024 due to a lack of consensus in parliament. It remains to be seen whether this time (even though the text has not changed), there is a parliamentary majority to approve the proposed text.

The draft bill provides for an opt-out system (as a general rule) and foresees the possibility of litigation funding. In our view, considering the limited use of the previous class action mechanism due to the aforementioned inconveniences, the new system, after the Directive is implemented (through the draft bill or otherwise), should lead to a notable increase in class actions in Spain.

The most relevant areas in which class actions could be brought could be financial litigation (claims for lack of transparency, abusive practices and/or usury in the financing of vehicles), antitrust litigation (claims for cartels and other infringements such as abuses of dominant position), product liability litigation and data security breaches.

The best way to prepare is to anticipate by analyzing and, where appropriate, correcting possible contracts, actions, products, etc. that could end up giving rise to class actions. Subsequently, it will be important to implement measures to preserve evidence and, of course, to obtain appropriate legal advice from experts in class actions.  

Our Madrid office is representing clients in class actions in financial litigation and antitrust litigation matters, so we are prepared to advise on any pre-litigation or litigation situation. 

Automotive class actions gained even more prominence in 2024.  

The ongoing Pan-NOx Emissions Group Litigation, where the court is collectively managing 13 separate group actions, brought by over 1.5 million claimants against thousands of defendants in the automotive industry, was among the highest-profile litigation in the UK in 2024. And it wasn't just in relation to diesel emissions that automotive manufacturers faced collective actions in this jurisdiction. Class actions have been brought or threatened across a range of other issues, from safety defects to vehicle finance, often with closely-linked claims brought in other jurisdictions.     

The automotive industry has been a key target for claimant lawyers over the last few years and businesses continue to be at risk. 

Looking ahead, we see no let-up for the automotive industry. We anticipate considerable collective action litigation arising in relation to energy transition and electric vehicles, the incorporation of complex AI into vehicles (and the developing legal and regulatory framework around this), and further emissions-related and greenwashing claims.  

The Supreme Court will soon hand down its key decision on commissions for car finance brokers, which could produce significant class actions litigation in the coming years.  

Collective actions inevitably follow any regulatory interventions, and we expect that trend to continue in 2025. Claimant firms pay close attention to the automotive industry, and UK regulators are becoming increasingly active in this area. This will translate into more proceedings in this jurisdiction. Close monitoring of regulatory and political developments will be essential. Companies must ensure compliance programs are robust and can adapt quickly as laws, regulatory risks, and market conditions change.