— A Hyundai Canada engine settlement has been reached after customers complained the Theta II engines were defective in these vehicles.
- 2011–2019 Hyundai Sonata
- 2013–2019 Hyundai Santa Fe Sport
- 2014, 2015, 2019 Hyundai Tucson
Those vehicles are equipped with 2-litre and 2.4-litre Theta II gasoline direct injection (GDI) engines.
According to Hyundai Sonata, Santa Fe Sport and Tucson owners and lessees, the Theta II engines suffer from defects that can cause engine seizures, stalling, failures and fires. Additionally, the plaintiffs allege some customers have been wrongly denied engine repairs under the warranties.
Multiple Hyundai Canada engine class actions were filed, including Asselstine v. Hyundai Canada Inc., et al., Papp v. Hyundai Motors America Inc., et al., Killoran v. Hyundai Auto Canada Corp., et al., and Pelletant v. Hyundai Auto Canada Corp., et al.
Hyundai says it has done nothing wrong and there are no defects in the vehicles, but the automaker says it chose to settle to avoid the cost and risk of ongoing litigation.
Hyundai Canada Engine Settlement Agreement
Hyundai Engine Warranty Extension
Hyundai is extending the powertrain warranty to a lifetime warranty for a customer who has a knock sensor detection software update completed on their vehicle. The warranty will cover any damage to the engine block, crankshaft, bearings, connecting rods and pistons and the rest of the long-block assembly caused by connecting rod bearing failure.
Hyundai customers must retain their maintenance records and will be required to provide records for vehicle maintenance performed before and after notice of the settlement is issued.
Hyundai dealerships will provide a free loaner vehicle until repairs are completed and will provide reimbursement of rental car expenses up to $40 per day if a loaner vehicle isn't available.
If a vehicle needs a new engine but has mileage at or above 200,000 km and is more than eight years from the original in-service date, Hyundai has the option of buying back the vehicle at its fair market value instead of replacing the engine.
A Hyundai dealer must install the knock sensor software within 60 days of the engine settlement approval notice date. The automaker created the knock sensor detection to monitor the engine for symptoms related to engine failure.
Reimbursement for Past Theta II Engine Repairs
Money you spent on certain qualifying repairs completed before notice of the settlement is issued may be reimbursed in full.
According to the engine lawsuit settlement:
"A Qualifying Repair is a repair, replacement, diagnosis, or inspection of the engine short-block assembly, which includes the engine block, crankshaft and bearings, connecting rods and bearings, and pistons due to a connecting rod bearing failure or symptoms associated with connecting rod bearing failure."
The settlement also says a qualifying repair includes repairs to the long-block assembly, battery or starter if paperwork shows the work was an attempt to repair:
"[E]ngine seizure, (ii) engine stalling, (iii) engine noise, (iv) engine compartment fire, (v) illumination of the oil lamp, or (vi) other mechanical or cosmetic damage that was caused by a connecting rod bearing failure or symptoms associated with connecting rod bearing failure, except in cases of Exceptional Neglect (repair costs will not be reimbursed if the paperwork reflects that the repairs were plainly unrelated to the short-block assembly)."
The Hyundai engine lawsuit settlement claims administrator will determine what constitutes a qualifying repair based on documentation submitted by the customer.
Previously Denied Hyundai Engine Warranty Repairs
The settlement agreement says a customer who was denied a repair under warranty and went elsewhere to repair the vehicle, that customer is eligible to receive a free oil and filter change and tire rotation at any Hyundai dealer.
Inconvenience Caused By Hyundai Engine Repair Delays
A Hyundai customer may be eligible to receive a dealer credit if you experienced more than 60 days of delay in obtaining a qualifying repair at a Hyundai dealer.
If you had a delay between 61 and 90 days, you will be entitled to a $65 dealer credit plus an additional $35 dealer credit for each additional 30-day period of delay.
Rental Car and Towing Expenses Related To Hyundai Engine Repairs
Money you spent on rental cars, towing services and similar services will also be reimbursed in full if the expense was related to obtaining a qualifying repair.
Compensation and Rebate Program Related To Hyundai Theta II Engines
According to the settlement agreement, and based on certain conditions, a customer may also be eligible for compensation if the vehicle was sold or traded at a loss. A customer may also be eligible for compensation, under certain conditions, if the vehicle was deemed a total loss as a result of an Theta II engine fire.
The Hyundai engine settlement says a customer who has "lost faith in your Class Vehicle as a result of an incident that would have led to a Qualifying Repair and you trade-in the Class Vehicle as part of a purchase of a new Hyundai vehicle at a Hyundai Authorized Dealer, you may be entitled to a rebate."
The rebate is calculated by determining the difference between the trade-in amount and the fair market value of the vehicle at the time of the trade-in.
A customer may qualify for a rebate up to the following maximum amounts based on the model year of the vehicle traded:
- 2011-2014 Vehicles – $1,750
- 2015-2016 Vehicles – $1,000
- 2017-2019 Vehicles – $500
A Hyundai engine lawsuit settlement approval hearing is scheduled for February 23, 2021.
The plaintiffs are represented by McKenzie Lake Lawyers, Strosberg Sasso Sutts LLP, Garcha & Company, and Merchant Law Group LLP.
