News

Hyundai, Kia Resolve Engine Litigation

Order Reprints

Oct. 15, 2019—Hyundai Motor America and Kia Motors America have entered into an agreement to resolve class action litigation with owners of certain vehicles equipped with Theta II gasoline direct injection (GDI) engines.

This agreement will provide various cash compensation options, lifetime warranties, free inspection and repair of the covered engines, and installation of a software update Hyundai and Kia introduced after the case was filed to enhance safety and address this engine's performance. It also provides additional remedies to address engine concerns and assist customers with these vehicles.

Vehicles in the settlement include 2.3 million Hyundai (2011-19 Sonata, 2013-18 Santa Fe Sport, 2019 Santa Fe, and 2014, 2015, 2018, and 2019 Tucson) and 1.8 million Kia (2011-2019 model year Sportage, Sorento, and Optima) vehicles with 2.0-liter and 2.4-liter GDI engines.

Terms of the settlement include:

  • Cash reimbursement for certain past repairs and related expenses, such as towing and rental cars;
  • Cash compensation for certain past trade-ins, sales, and in lieu of certain repairs;
  • Free inspection and repair or replacement of damaged engines;
  • Lifetime warranty coverage for short block assembly repairs for original and subsequent owners;
  • Free installation of the knock sensor detection system software update;
  • Various goodwill compensation for customers inconvenienced by previous lengthy engine repair times, denied warranty coverage, and vehicle loss of value, among other provisions

"Reflecting our commitment to customer satisfaction, Hyundai is pleased to resolve this class action litigation," said Jerry Flannery, chief legal officer, Hyundai Motor America. "This settlement acknowledges our sincere willingness to take care of customers impacted by issues with this engine's performance and recognizes the many actions we are already taking to assist our customers."

The Court is expected to review the proposed settlement for preliminary approval later this month. Assuming preliminary approval is granted, notices will be sent to individual class members pursuant to the terms of the settlement.

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