Hyundai, Kia to Pay $760M to Settle Engine Fire Lawsuit

After years of public scrutiny and a series of investigations in the United States, South Korean automakers Hyundai and Kia can finally put to rest the issue about their cars’ engines catching fire now that both companies have reached a settlement with affected consumers.

Hyundai and Kia were ordered to set aside $760 million for cash reimbursement, which will be used to cover repairs and other expenses that may have been brought about by the problem. The cash settlements that will be given to vehicle owners will also cover compensation for trade-ins and sales that took place due to repairs for owners and lessees.

Aside from monetary compensation, Hyundai also intends to provide more assistance to the customers by entitling them to a free update to the knock sensor detection system, which works by protecting engines once the system detects trouble. Damaged engines will also be given free inspections, repairs, and replacement if necessary. Additionally, all affected models will be covered by a lifetime warranty that transfers with the car and does not end with the original owner.

Among the vehicles involved in the class-action lawsuit that involved Hyundai and Kia include the 2011-2019 Hyundai Sonata, 2013-2018 Santa Fe Sport, 2019 Santa Fe, 2014-2015, 2018-2019 Tucson, and the 2011-2019 Sportage, Sorento, and Optima. A total of 2.3 million Hyundai and 1.8 million Kia vehicles were covered in the lawsuit, all of which have been identified to be equipped with problematic 2.0-liter and 2.4-liter engines.

The automakers have previously recalled around 1.7 million vehicles related to the issue.

“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,” said Jerry Flannery, Hyundai Motor America’s chief legal officer.