Volkswagen Recalls Over 171,000 Atlas SUVs for Backup Camera Defect

Volkswagen has issued a major recall affecting over 171,000 of its 2024–2025 Volkswagen Atlas and Atlas Cross Sport SUVs due to a defect with the backup camera system. According to Volkswagen, a software issue may cause the rearview camera image to become distorted, reducing visibility and increasing the risk of an accident when reversing.

If you own one of these models and have experienced backup camera problems, you may be entitled to compensation under California’s Lemon Law.

The Recall: Backup Camera Malfunction

The recall impacts the following vehicles:

  • 2024–2025 Volkswagen Atlas

  • 2024–2025 Volkswagen Atlas Cross Sport

The issue arises from a glitch in the infotainment system’s control unit, which can cause the camera display to freeze or distort while reversing. Volkswagen says affected owners will begin receiving recall notification letters by July 18, 2025, and dealerships will perform a free software update to resolve the problem.

This isn’t the first time the Atlas has faced scrutiny — earlier in 2025, over 200,000 Atlas vehicles were recalled for loose engine covers. Repeated issues like these can qualify a vehicle as a “lemon” under California law.

How to Proceed

Document Issues: Keep detailed records of all repairs and communications with the manufacturer. While at the dealership, ensure that all of your complaints are noted in the work order that you receive when you first drop off your vehicle.

Reasonable Number of Repair Attempts: While the law doesn't specify an exact number, generally, if the same problem persists after four or more repair attempts, or if the vehicle is out of service for more than 30 days cumulatively, it may qualify as a "lemon."

Monitor Symptoms: Any new warning messages, distortion, or blackout of the backup camera display? Stop driving immediately and seek inspection, and let the dealership know.

Talk to a Lemon Law Attorney, like Valero Law: If repairs fail, or if you experience repeated issues, you may be entitled to relief under California law. Remedies can include a repurchase of the vehicle or a cash settlement.

🛑 Protect Your Rights Under California Lemon Law
If you are like many California drivers experiencing defects in your 2024 or 2025 Volkswagen Atlas or Atlas Cross Sport, you may be eligible for compensation under the California Lemon Law.

Compensation may include:

  • A complete repurchase of your defective SUV

  • A replacement vehicle

  • Or a substantial cash settlement for the lost value of your vehicle

Call Valero Law, APC at (424) 299-4447 or complete our free Lemon Law case evaluation form today. We take cases on a contingency basis — that means no cost to you unless we win.