Hyundai Motor and Kia Motors agreed in a class-action lawsuit for the Theta 2 GDi engine in the U.S., which will provide a lifetime guarantee program to U.S. and local customers.
Both companies recently said they will expand the application of "Knock Sensor Detection System (KSDS)," a new engine prevention and safety technology, to Theta 2 GDi vehicles and guarantee the engines for life for the vehicles.
Hyundai and Kia will also provide compensation to customers who experience engine problems. The number of vehicles affected stands at 520,000 units.
Hyundai and Kia also agreed on a reconciliation plan with customers of the Theta 2 GDi engine class action lawsuit in the U.S. and sought a preliminary approval for the reconciliation from a U.S. court on Oct. 10 (local time)
In the U.S., the companies also agreed to implement a level of compensation equal to that of South Korea, including the application of KSDS and lifetime guarantees, for the 2011-2019 Theta 2 GDi vehicles.
The move is aimed at dispelling outside concerns over the Theta 2 GDi (Gasoline direct injection) engine.
As the two companies have decided to conduct customer satisfaction programs on an equal basis in South Korea and the U.S., they plan to send separate notices to customers of the affected models and provide detailed guidance on the benefits when the preliminary court approval of the U.S. class action suit is completed.
They will also operate compensation programs when customers buy back Hyundai and Kia vehicles after experiencing delays in repairs or engine defects due to component parts.
Hyundai and Kia had previously implemented recalls in 2015 and 2017 after problems that could cause the engine to go off for different reasons in the U.S. and South Korean plants.