Small Transport
Flight Crew Instrument; Flight Crew Multiengine; Flight Crew Commercial
Flight Crew Last 90 Days 20; Flight Crew Total 2300; Flight Crew Type 1000
Aircraft Equipment Problem Less Severe; Inflight Event / Encounter CFTT / CFIT
Flight Crew Overcame Equipment Problem; Flight Crew Took Evasive Action
Aircraft
Departing Van Nuys Runway 16R on the Canoga 2 departure. Airplane was on VNAV and autopilot to fly the departure. After reaching the VNY 2.2 DME at 1700 feet AGL; airplane turned to heading of 213 degrees and airplane did not continue climb to assigned altitude of 4000 feet. Terrain warning system activated. Pilot took evasive action and turned to the right to avoid terrain.
Corporate Captain reported terrain warning activation on coupled departure due to autopilot malfunction.