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| Hyundai Motor's Theta 2.4 GDi engine. / Courtesy of Hyundai Motor |
Car owners here and in the United States, who have experienced engine failure, will be able to receive various cash compensation options and lifetime warranties.
Korea's two largest automakers said they would extend the installment of the Knock Sensor Detection System (KSDS) for the early detection of engine failure.
Their engine warranties will affect nearly 520,000 models equipped with Theta 2GDi and Theta 2 turbocharged GDi engines, including the 2010-19 Hyundai Sonata, Grandeur, Santa Fe, Veloster N, and Kia K5, K7, Sorento and Sportage vehicles.
"Hyundai and Kia will continue to focus on improving customer satisfaction by offering customer-oriented, high-quality technologies and services," a Hyundai Motor official said.
In addition, 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 2 GDi engines.
U.S. federal prosecutors had been investigating whether Hyundai and Kia properly conducted vehicle recalls linked to engine defects.
In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine defects would increase the risk of stalling.
In March 2017, Hyundai expanded its U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with Theta 2 engines, citing the same issue involving engine failure. Kia also recalled 618,000 Optima, Sorento and Sportage vehicles, all of which use the same engine.
According to automakers, the agreement terms will include cash compensation options, lifetime warranties, free inspection and repair of the covered engines, and installation of KSDS to enhance safety and address engine performance.
The automakers will also provide additional remedies to address engine concerns and assist customers with vehicles.
The settlement will affect vehicles, including 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 (2011-19 model year Sportage, Sorento and Optima) vehicles with 2.0-liter and 2.4-liter GDi engines.
"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."
