Hyundai offers lifetime warranty for faulty engine

Hyundai Motor Group will offer a lifetime warranty for its Theta II engine that incurred massive recalls and class action suits, the company said Friday.

According to the automotive group, Hyundai Motor and Kia Motors will provide a lifetime warranty as well as cash compensation options and software upgrades to Korean and U.S. owners of cars equipped with the problematic Theta II gasoline direct injection (GDI) engine.

Subject cars in Korea include Hyundai Motor’s Sonata, Grandeur, Santa Fe, and Veloster N and Kia Motors’ K5, K7, Sorento and Sportage with models from between 2010 and 2019 equipped with the Theta II engine. A total of about 520,000 cars are affected.

In the United States, 4.1 million vehicles are affected. The models differ slightly from Korea.

The announcement comes as the group has resolved class action litigation with U.S. owners of Hyundai and Kia vehicles equipped with the Theta II GDI engine, agreeing to provide compensation. The group said the U.S. court will review the proposed settlement for preliminary approval this month.

The terms of settlement include cash reimbursement of certain past repairs and related expenses such as towing cars and free installation of the knock sensor detection system software update that the carmaker says will prevent engine failures by continuously monitoring engine vibrations.

The group said similar terms of compensation will be offered for both Korean and U.S. customers.

The carmaker is still being investigated in criminal cases in both Korea and the United States.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]