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

The court's May 10, 2021 final approval order lists the Kia class vehicles as all 2011–2018 and certain 2019 Optima, all 2012–2018 and certain 2019 Sorento, and all 2011–2018 and certain 2019 Sportage 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 built before KSDS technology was added in production. The same case covers the matching Hyundai Sonata, Santa Fe Sport and Tucson models.

The class covers U.S. buyers and lessees, including people who bought while abroad on active U.S. military duty. It excludes dealers, rental owners, lienholders, buyers of vehicles previously declared a total loss, and anyone who opted out by the October 30, 2020 deadline.[5][2][1]

The settlement extends the powertrain warranty 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. It pays for inspection, parts, labor and diagnosis. No claim form is needed, but the KSDS Product Improvement Campaign must be completed by a Kia dealer.

KSDS is free software that monitors the engine for symptoms that can come before failure. If it detects bearing wear, the check-engine light comes on and the car goes into a temporary engine protection mode. Kia can deny the warranty for Exceptional Neglect, meaning at least a year of obvious lack of care or not having KSDS installed. Kia suggests keeping maintenance records for service after August 18, 2020. Dealers provide a loaner during repairs, or Kia reimburses rental costs up to $40 a day.[2][5]

Reimbursement for past repairs and compensation for sold or traded-in vehicles closed on August 9, 2021. Claims tied to new events stay open under 90-day windows. Towing, rental (up to $40 a day) and other expenses for a qualifying repair must be claimed within 90 days of when the cost was incurred or paid. Inconvenience from repair delays must be claimed within 90 days of the completed repair. A vehicle lost to an engine-compartment fire after August 28, 2020, or a lost-faith rebate after an engine failure or fire, must be claimed within 90 days of the event.

A fire-loss claim pays the maximum Black Book value plus a $140 goodwill payment. The rebate toward a replacement Kia is up to $2,000 for 2011–2012 class vehicles, $1,500 for 2013–2014, $1,000 for 2015–2016, and $500 for 2017–2019. Kia's settlement website says the claims administrator handles only claims filed by November 30, 2021, and later claims go to Kia America directly. Denied claims can go to arbitration run by the BBB, paid for by Kia.[2][1]

The Engine II settlement agreement, dated August 29, 2022, resolves similar connecting-rod bearing claims for other Hyundai and Kia engines. The Kia class vehicles are listed in the table below. The official Engine II website says the court granted final approval and entered judgment on April 26, 2024.

The agreement extends the powertrain warranty to 15 years or 150,000 miles from original retail delivery for engine damage caused by connecting-rod bearing failure. For that Extended Warranty, KSDS must be installed before a covered engine failure. Vehicles under the Engine II recalls (NHTSA 20V746, 21V727, 20V750 and 21V844) are exempt from the requirement. Current and later owners of other Kia class vehicles stay eligible as long as KSDS was installed before the failure. For other benefits, the agreement counts not installing KSDS within 150 days of the Notice Date as KSDS Installation Neglect. A lost-faith rebate claim for a failure after the Notice Date is due within 90 days of the failure.[3][4]

Kia's main Theta II bearing recall is 17V224 (2011–2014 Optima, 2012–2014 Sorento, 2011–2013 Sportage). Recall 18V907 inspects the high-pressure fuel pipe on Optima, Sorento and Sportage engines replaced under that recall, under warranty, or through the KSDS campaign. Recalls 20V750, 21V844 and 23V877 cover Engine II-era models for engine damage or engine-compartment fire risk.[6][7][8][9][10][11][12]