Steven Cohen  |  October 14, 2019

Category: Auto News

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hyundai dealershipHyundai and Kia have reached a $758 million settlement with car owners who claim that their vehicles suffer from premature engine failure which may cause the cars to burst into flames.

The 10 consolidated Hyundai, Kia class action lawsuits allege that the car companies knew of the defect, but did not disclose this information to customers.

Under the terms of the proposed class action settlement, Class Members may receive numerous benefits, which includes reimbursement for some out-of-pocket costs and repairs, an extension of the Lifetime Warranty, a rebate, and “goodwill payments.”

According to the motion for approval of the class action settlement, the vehicles that are part of this Class include: “all 2011-2018 and certain 2019 model year Hyundai Sonata vehicles, all 2013-2018 and certain 2019 Hyundai Santa Fe Sport vehicles, all 2014-2015, 2018, and certain 2019 Hyundai Tucson vehicles, all 2011-2018 and certain 2019 Kia Optima vehicles, all 2011-2018 and certain 2019 Kia Sorento vehicles, and all 2011-2018 and certain 2019 Kia Sportage vehicles originally equipped with or replaced with a genuine Theta II 2.0 liter or 2.4 liter gasoline direct injection engine within OEM specifications.”

As part of the settlement, Class Members will receive a Lifetime Warranty which will cover costs related to the damage to the vehicles caused by the malfunction of the engine upon completion of the Knock Sensor Detection System (KSDS) software update.

Also, Hyundai and Kia will reportedly give loaner vehicles to customers while their cars are being repaired under the Lifetime Warranty. If there isn’t a vehicle available for loan, the defendants will reimburse the customers up to $40 per day for car expenses.

“Should any disputes about coverage under the Lifetime Warranty occur, they will be resolved through the Better Business Bureau’s (‘BBB’) alternative dispute resolution process,” the proposed Kia, Hyundai class action settlement states.

In addition, the class action settlement states that any Class Member that obtained a repair for their Class Vehicle prior to receiving a notice of settlement will qualify for a full reimbursement of out-of-pocket expenses.

The proposed motion also states that if warranty coverage was denied in the past, Class Members will now be able to get reimbursed for repairs related to the settlement.

“If a Class member is or was inconvenienced by delays of more than 60 days when obtaining a repair from an authorized Hyundai or Kia dealership, the Class member may submit a claim for a goodwill payment based on the length of delay,” the Hyundai, Kia class action settlement states.

Class Members will receive $50 goodwill payments for delays that last between 61 and 90 days and $25 for each additional 30 days.

Those who experienced the engine defect in their vehicle but decided to sell or trade it in without getting the car repaired will be able to file a claim for reimbursement of the wholesale used vehicle value at the time of loss, along with a $140 goodwill payment.

Hyundai and Kia owners who experienced a vehicle fire due to the alleged defect are able to claim the maximum Black Book value of the car at the time of the fire, plus $140 goodwill payment.

Last, Class Members can obtain a rebate of between $500 and $2,000 if they decide to sell a Class Vehicle in an “arm’s length transaction” if they have experienced an engine failure or engine component fire and purchased a replacement Hyundai or Kia vehicle.

“A rebate is also available to any Class member who, after the notice date, experiences an engine failure or fire in a Class Vehicle, loses faith in their Class Vehicle, and completes all other steps to qualify for the rebate, including the purchase of a replacement Hyundai or Kia vehicle and submission of a claim within 90 days of the engine failure or fire,” the proposed class action settlement states.

Did you purchase a Hyundai or Kia and have problems with the engine? Leave a message in the comments section below.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The plaintiffs are represented by Steve Berman of Hagens Berman Sobol Shapiro LLP, Matthew D. Schelkopf of Sauder Schelkopf, Adam Gonnelli of The Sultzer Law Group and Bonner Walsh of Walsh PLLC.

The Hyundai, Kia Engine Defect Class Action Lawsuit is In re: Hyundai and Kia Engine Litigation, Case No. 8:17-cv-00838, and Flaherty v. Hyundai Motor Company, et al., Case No. 18-cv-02223, both in the U.S. District Court for the Central District of California.

UPDATE: July 2020, the Hyundai, Kia engine failure class action settlement is now open. Click here to file a claim. 

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298 thoughts onHyundai, Kia Agree To $758M Engine Fire Class Action Settlement

  1. Lynn says:

    My daughter is the owner of a 2017 Santa Fe Sport with only 60k miles on it. Two weeks ago while driving to work it quit on her. Long story short, it was a know issue with the rod bearings and excessive oil consumption that requires the entire engine and engine assembly to be replace. Due to the current delay in shipments here in the US, it will take them 8-10 weeks to get the parts and get it fixed. She is only 21 years old and doesn’t have the money to pay for a rental car out of pocket for 8-10 weeks NOR to pay the difference they are will to provide her for a rental car. The $40 a day they offer is NOT EVEN half of what a bare minimum rental car from the cheapest place around costs. How do I get her added to the lawsuit?

  2. Michelle Strosnider says:

    Not sure if I already replied to this or not. I am at a loss and need help. My vehicle (2013 Honda Santa Fe Sport 2.0) is in the shop getting the engine replaced for a 2nd time! It has been in there since July 16th. The service manager is rude! They don’t call me with updates, I have to call. I wasn’t provided a rental car for the first month was told I was on my own to find one. Mind you in July 2021 it was impossible to find a rental car without paying a fortune! It is now January 2022 and still no word except they have the parts and are short staffed. They have a long line of vehicles ahead of me and can’t tell me when it will be ready. They are only working on one vehicle at a time. I reached out to an attorney and because of this class action lawsuit they won’t help me either! If I can be added and get help I would greatly appreciate it!

    1. Juan Carlos P says:

      I have the same problem! 2013 Santa Fe with engine problems for 2nd time. Dealer stating that Hyundai will not repair engine. Very frustrated with this issue.

  3. Margit Tripp says:

    I know I’m not qualified for any type of lawsuit, but I wish I was. If anything, writing this can be a warning for others and relieve some stress for me.

    We have a 2019 Hyundai 2L Tucson. We bought it used in which there was no warranty on it from Hyundai and our 6 month warranty from the dealership had expired when our engine crapped out at 64,000 miles in the middle of nowhere. $6000 later, out of our pocket, we got our Tucson back with used engine that had a little over 37,000 miles on it. This engine had a warranty of 6 months and thank God it did. 4 months, and almost 3 thousand miles later, engine number two blew up also! The most frustrating thing we’ve ever dealt with. The 3rd engine has around 30.000 miles on it, but we want to trade this Tucson in. We’re both white knuckled to drive it and afraid the engine will crap the bed after this new to us engine’s warranty expires in 6 months. If it does, we’re screwed. I don’t have nor do I want to put another $6000 out there for a 4th engine!

    Hyundai has left a really bad taste in our mouths. Never again will we own one. No matter how hard we tried, no matter who we talked to, we’re left standing in the cold with no where to turn.

    Thank you Hyundai. You suck.

  4. Anastasia Alosi says:

    Is it too late to try to “get in” on this? My 2012 Kia Sorento 4L got a replacement engine in 2019 with 99k miles. My NEW engine has left me stranded on the side of the PA Turnpike before the sun came up, I choke everyone whenever I start my SUV, I feel the engine lurching, it smokes, and burns oil – I replace the oil every 3 days. Took it to Kia who said “there’s nothing wrong with it” and won’t fix it because a certain code wasn’t present when they “ran diagnostics”. Kicker – made me pay for an oil change when I brought it in…. I change the oil every 3 days at this point. We are a 1 car household and I make in-home visits to the elderly and sick as a traveling APN. I need help ASAP.

    1. Anastasia Alosi says:

      I should add, the new engine has 30k on it.

  5. Ann Lauritsen says:

    Do I have any chance of being covered? My 2015 Santa Fe has the V6 3.3 liter GDI engine and I am having the same problem people had with the 2.0 and 2.4 engines. Rod is almost through engine- my car is at Hyundai service now, having been rejected for coverage bc I bought the car pre- owned. It has 88k miles which they say is outside warranty period.

    1. Carrie Hogan says:

      My Kia Sorento is sitting in the shop with a blown head gasket just now finding out it is not part of the settlement due to it having a 3.3 liter engine. I purchased it brand new and has 103,000 miles on it would’ve been fully covered if it happened a few months ago. I am so upset, I feel like I bought a disposable car for nearly $40,000

    2. Darin Williams says:

      I’m in the same boat with Sante Fe 3.3l v6. It was 4qts of oil low with no indication or warning light. Now it need new engine and it not covered by anything bc it was operated with low oil. Would love to hear it that’s similar or if you’ve heard anything else.

      1. Kelsey says:

        I have the exact same problem and even calling corporate hyundai didn’t do any good. They agreed it was a hyundai issue but since it’s not listed as part of the recall I’m basically sol

    3. Mark Meachum says:

      Those of us, who have or had a 3 3L engine Lambda ii or 3 3L turbo Lambda engine ii will need to start another class action lawsuit against Kia/Hyundai. I am currently waiting for this lawyer to review my documents.

  6. Blake Nelson says:

    I had a 2019 Kia Niro. The first week of December on the way to work, I heard a “pop” and black smoke poured out the back and lost power. Luckily was able to pull to the side of the busy San Diego 15 freeway. Getting on the phone to call AAA, and flames and smoke came from the hood. I quick grabbed what was in my front seat and ran from the car. The car burned to a crisp in the front, and was deemed unfixable. The case took way longer to settle and supposely been closed but Kia Finance took out a payment out of my account for a vehicle that was totalled out and case was closed! Not to mention, with this pandemic, I’m hurting for money, it over drafted my account. I need some help in getting some of the hundreds of dollars Kia has caused me!

  7. Mike Khalaf says:

    I have a 2013 Hyundai Santa Fe and there were 7 campaigns done to it last November.2019.

    After 55,000 miles there was a weird vibration when driving on the freeway at certain speeds and it happened sporadically. It was just enough for me to blow it off
    because the engine warning light was not on and I always check and change the oil every 3000-4000 miles.

    Anyway, one of the recalls stated you may have a leak from the oil feed pipe. I use the term “leak” loosely it was more like an oil guiser which sprayed all over my driveway and covered the engine. Suffice to say the dealer did repair the oil feed at no charge. The oil leak occurred 2 days before Thanksgiving so. I had to rent a car when rental rates are at peak price which costs 450 for a POS.. A week later the dealer called to inform me the car was ready for pick up. I started driving the car home and smoke was billowing from the engine compartment and burnt oil smell went directly into the interior of the cab. I stop at the next gas station only to see the dealer did not steam clean the engine oil was all over the exhaust manifold, on the engine block and plastics. Now that sucks.

    Suffice to say this class action lawsuit involves over 4 million Hyundai vehicles and knowing this is a big problem they did not have the parts in stock.

    Fast forward now I have 115,000 and 2 days ago I was driving and all of a sudden the car seized up and I had to limp home. The last recall they installed a software update which is a Knock Sensor Detection System so now I need the engine to be replaced because I looked at the oil dipstick and notices small metal shavings. Oh, I tried to sing up to be part of the class action and it did not recognize my VIN number which is total BS. Hyundai was to inform its clients I never got a letter from the.m so I guess it’s on a need to know basis. My car is totally covered it’s clear as day so now I have to deal with the VIN BS.

    Nightmare.

  8. Shanda cramer says:

    I have a 2015 Kia Sedona. Had 65k miles the engine blew up. I had to have it replaced. I mentioned the whole engine issues but Kia didn’t cover any of it. So I had to purchase a who new engine.
    How do I get added.

  9. Jeffrey cegla says:

    I have a 2013 sonata with 80000 miles on it engine was replaced due to excessive oil consumption. Dealer replaced engine and gave me a loaner,took about two weeks. I’m hoping this isn’t a p.o.s also.

  10. Jodi Castillo says:

    How do I know if my 2018 Hyundai Tucson is part of the vehicles covered in this suit

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