A fault in the ERAD (Electric Rear Axle Drive) system of the Volvo V60 Plug-in Hybrid means that the electric rear axle fails and you can only drive on petrol. This system provides the electric drive for the rear wheels. This hybrid system service message – a warning on the dashboard that the hybrid drive system requires maintenance – often arises due to water ingress, a failing electric motor or worn clutches, and can lead to repairs of more than 10,000 euros. Make sure you know what to do when this fault appears.
What is the ERAD (Electric Rear Axle Drive) system in the V60 Plug-in Hybrid
The ERAD system stands for Electric Rear Axle Drive and provides the electric drive for the rear wheels. In the Volvo V60 Twin Engine – Volvo’s designation for their plug-in hybrid models with dual powertrains – the petrol engine drives the front wheels, while the ERAD electric motor drives the rear axle independently. This system provides four-wheel drive without a propshaft, which saves fuel and delivers better performance when accelerating.
Volvo built several versions of this system. The ERAD1 (first generation of the ERAD system) variant appeared in 2016 and 2017, but had multiple problems with clutches and sensors. The ERAD2 (second generation) version followed from 2018 to 2022, and later came ERAD3 (third generation). Each version received technical improvements, but all variants show similar weaknesses at higher mileages.
‘ “As soon as the error message appears, it is wise to stop driving immediately until the cause is known.” ’
How to recognise an ERAD fault
A fault in the ERAD system gives off various signals. The most common are:
- Error message ‘Hybrid system requires service’ on the dashboard
- Warning light for the drive system that does not go out
- Loss of electric drive on the rear axle
- Increased fuel consumption because only the petrol engine is working
- Clicking, clunking or grinding noises from the rear axle when accelerating
- Strange noises when switching between electric and petrol driving
- Difficulty accelerating or noticeable loss of power
These symptoms often start subtly. Owners report first hearing slight noises which, within a few thousand kilometres, escalated to complete failure of the rear axle. As soon as the error message appears, it is wise to stop driving immediately until the cause is known.
Common causes of ERAD problems
Several factors can cause a fault in the ERAD system. The main causes are:
- Wear of the clutch in the ERAD unit, which causes metal particles in the oil
- Defective temperature sensors sending incorrect information to the system
- Contaminated or aged oil that damages motor and differential
- Water ingress in the electric motor due to leaking seals
- Broken circlips that trigger a chain reaction of damage
- Failing electric motor due to overloading or manufacturing defects
Volvo refers to the oil in the ERAD system as ‘lifetime fluid’, but in practice this does not hold up. Aged oil collects metal flakes and forms sludge, which attacks the internal components. This process accelerates after 50,000 kilometres, especially in early ERAD1 models.
What do repairs to the ERAD system cost
An ERAD fault can lead to high costs. Full replacement of the ERAD unit often costs between 8,000 and 10,000 euros or more. This amount includes the new unit, removal of the rear axle and labour at a specialist workshop.
Smaller repairs are sometimes possible when the problem is detected early. An oil change with inspection costs a few hundred euros. Replacement of sensors or seals falls into the 500 to 1,500 euro range, depending on accessibility and the parts required.
Check whether your car is still under warranty. Some owners have managed to get Volvo to carry out repairs as a goodwill gesture, especially for known design faults in ERAD1 models. This requires consultation with the dealer and sometimes persistence.
‘ Replace the oil in the ERAD system every 50,000 to 100,000 kilometres, even though Volvo does not prescribe this ’
How to prevent ERAD faults
Preventive maintenance significantly reduces the risk of expensive ERAD repairs. Take the following steps:
- Replace the oil in the ERAD system every 50,000 to 100,000 kilometres, even though Volvo does not prescribe this
- Have a diagnostic check for fault codes in the hybrid system carried out at every major service
- Have a specialist check the rear axle oil for metal particles
- Do not continue driving with active warning messages to prevent further damage
- Always use the correct oil specification for the ERAD system
When buying a used V60 Plug-in Hybrid, extra vigilance is required. Always ask for the full service history and have the ERAD oil checked for contamination. Early ERAD1 models from 2016 and 2017 have the highest failure rate, so weigh the purchase carefully against potential future costs.
What to do when you get an ERAD warning
If the message ‘Hybrid system requires service’ appears on your dashboard, take action immediately. Drive as soon as possible to a garage that specialises in Volvo hybrid technology. Avoid high speeds and heavy loads on the system.
A diagnostic computer can read the exact fault codes that indicate which component is causing problems. This helps to determine whether it is a small sensor issue or serious damage to the ERAD unit itself. Do not wait to see if the message disappears by itself, because driving on with a fault can worsen the damage.
Some owners try to check the oil themselves via the drain plug, but full replacement requires removal of the rear axle. Leave this work to professionals with the right knowledge and tools. An incorrect diagnosis or repair can lead to even higher costs.
Experiences of V60 Plug-in Hybrid owners
Owners value the V60 Plug-in Hybrid for its performance and efficiency, but many report concerns about the reliability of the ERAD system. Mechanics warn that ERAD faults often start insidiously with subtle noises that can grow into complete failure within a few months.
A frequently heard tip from experienced owners: if in doubt, always have the oil checked and do not wait until the error message appears. Acting preventively can save tens of thousands of euros in repairs. Several owners report that they had no further problems after an oil change, while others who postponed replacement did suffer major damage.
The hybrid technology offers many benefits but does require specific attention and maintenance. Those who are aware of the weaknesses of the ERAD system and act in good time can enjoy this plug-in hybrid for many more years without worries.
‘ Find out which systems are vulnerable and how to avoid expensive repairs. ’
Want to know more about hybrid technology and maintenance
On the Carnews website you will find much more information about hybrid powertrains, common faults in plug-in models and practical maintenance tips for modern cars. Find out which systems are vulnerable and how to avoid expensive repairs. Visit the website for more knowledge about your car.
Frequently asked questions
An ERAD system fault in a Volvo V60 Plug-in Hybrid means that the electric rear axle drive (Electric Rear Axle Drive) is not functioning properly or has (partially) failed. As a result, the car (temporarily) loses electric drive on the rear wheels and the four-wheel drive no longer works as intended. The driving behaviour then effectively changes to front-wheel drive only, with less traction and a different balance in bends or in wet / slippery conditions. In addition, performance and acceleration may deteriorate and unusual noises or warning messages may occur.
Common causes of an ERAD system fault include wear or damage to the clutch, defective temperature sensors and contaminated or aged oil in the motor and differential, often containing metal particles. Symptoms include loss of rear-wheel drive, reduced fuel efficiency and clear loss of performance, especially in electric or hybrid mode. Drivers also notice unusual noises (clicking, clunking, grinding) from the rear axle when accelerating or during gear changes. In addition, warning messages often appear on the dashboard such as “propulsion system failure” or persistent fault codes that do not disappear after a software update.
The expected repair costs in the event of an ERAD system fault can, depending on the damage, rise to more than €10,000, especially if complete replacement of the rear axle or electric motor is required. Repair options range from relatively limited work such as changing the oil and cleaning out metal particles to replacing defective sensors or clutches. In more serious cases, overhauling or replacing the complete ERAD unit is necessary. Timely diagnosis and maintenance can significantly limit the final costs.
Yes, you can have the ERAD oil changed preventively around every 50,000–100,000 km instead of relying on “lifetime fluid”. During servicing, have the rear axle oil checked for metal particles and have any fault codes or warning messages read out and rectified immediately. Always take unusual noises or loss of power in the electric / rear-wheel drive seriously and do not continue driving with them. Consider regular checks by a specialist who has experience with Volvo plug-in hybrids and specifically with ERAD systems.