Hyundai Engine Settlement: Theta II Lifetime Warranty and Engine II Coverage

The court's May 10, 2021 final approval order defines the class vehicles as all 2011–2018 and certain 2019 Hyundai Sonata, all 2013–2018 and certain 2019 Santa Fe Sport, and all 2014–2015, 2018 and certain 2019 Tucson models. Each must be originally equipped with, or repaired with, a genuine Theta II 2.0-liter or 2.4-liter gasoline direct injection engine. A 2019 model is included only if it was built before KSDS technology was added in production. The same order covers the matching Kia models.

The class is U.S. owners and lessees. It excludes dealers, rental fleets, lienholders, buyers of vehicles previously declared a total loss, and anyone who opted out. Claims for death, personal injury, property damage and subrogation are also excluded.[1][2]

Hyundai's settlement website says the powertrain warranty on Hyundai class vehicles is extended to a lifetime warranty on the short block: the engine block, crankshaft and bearings, connecting rods and bearings, and pistons. It covers bearing wear or damage regardless of mileage, length of ownership, or earlier engine repairs. Consumer owners must have completed the Knock Sensor Detection System (KSDS) software update, and no claim form is needed for this benefit.

KSDS is a free update that watches engine vibrations for patterns that come before bearing failure. If it detects them, the check-engine light flashes and the car goes into a reduced-power engine protection mode so it can be driven to a repair facility. Hyundai's engine information site says the related warranty extension applies to both original and subsequent owners. The order lets the warranty be denied for Exceptional Neglect, which includes not scheduling the KSDS install within 60 days of notice, and it does not apply to commercial entities such as used-car dealers or auction houses.[2][1][5][6]

Hyundai's Theta settlement site says the deadline for most claim types, including reimbursement of past repairs and loss of value on sold vehicles, expired on August 9, 2021. Claims that stay open are tied to new events: repair-related expenses such as rental, towing and rideshare; inconvenience from repair delays; total loss of a vehicle in an engine fire; and a rebate for owners who lost faith in their vehicle and bought a replacement Hyundai.

Under the final approval order, repair delays beyond 60 days at a dealer earn a $50 goodwill payment for 61–90 days and $25 for each additional 30 days, or 150% of that amount as a dealer service card. A vehicle lost to an engine fire caused by the defect is paid at its maximum Black Book value plus a $140 goodwill payment. Coverage disputes go to arbitration run by the Better Business Bureau, paid for by the automakers.[2][1]

The Engine II case alleged the same kind of connecting-rod bearing defect in other engines. The official site says the court granted final approval and judgment was entered April 26, 2024. The settlement extends the Powertrain Limited Warranty to 15 years or 150,000 miles from original retail delivery for short-block or long-block damage caused by connecting-rod bearing failure. The extended term stays with the car when it is sold, but it is not available to commercial entities such as used-car dealers.

To get the Extended Warranty, the KSDS update must be done at a Hyundai dealer before any covered engine failure. Vehicles under Hyundai recalls 198 and 209 (NHTSA 20V746 and 21V727) are exempt from that requirement. For other settlement benefits, owners generally had to complete KSDS by November 4, 2023. Claims not tied to future failures expired July 8, 2024. Benefits for later failures still include towing and transportation expenses, repair-delay compensation, incidentals, total loss in a qualifying fire, and a rebate toward a replacement Hyundai.[3][7]

Hyundai's engine information site lists four recalls for connecting-rod bearing wear: Hyundai campaigns 132, 162, 198 and 209 (NHTSA 15V568, 17V226, 20V746 and 21V727). It says dealers confirm KSDS installation through Service Campaign 953 or 966. The recalls describe engine knock, reduced power, and warning lights for check engine or oil pressure. Hyundai says a fractured connecting rod can damage the block and release oil onto hot engine parts. Related fuel-line recalls 18V934 and 20V121 cover Sonatas and Santa Fe Sports that had engine work or high-pressure fuel components.[4][5][8][9][10][11][12][13]