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Federal judge signs off on $1 billion settlement over Kia/Hyundai car fires

Engine issue brought to light by ABC Action News I-Team
Kia Car Fire
Posted at 1:54 PM, May 13, 2021

TAMPA, Fla. — A federal judge approved a $1 billion settlement for four million KIA and Hyundai owners to settle a case over an engine defect first brought to light by ABC Action News I-Team Investigator Jackie Callaway in 2018.

The settlement is estimated at $1.3 billion over the engine defect that was linked to cars and SUVs spontaneously bursting into flames. The money from the settlement, first announced in 2019, would cover reimbursement for past repairs and expenses, free repair or replacement for damaged engines, denied warranty coverage and loss of vehicle value.

In a statement to the ABC Action News I-Team, Hyundai said:

We are pleased with the settlement, which offers several attractive options to the relatively small number of customers who experienced a reliability issue with the class vehicles, and acknowledges our sincere willingness to take care of impacted customers. That includes various cash compensation options, lifetime warranties, free inspection and repair of the covered engines, and installation of a software update Hyundai and Kia introduced after the case was filed to enhance safety and address this engine’s performance.

In a statement to ABC Action News I-Team, KIA said:

Kia is pleased with the settlement, as this resolution is the latest demonstration of Kia’s pledge to vehicle quality, and most importantly, customer satisfaction. Our deployment of various compensation options, lifetime warranties, free inspection and repair of the covered engines, and the installation of a software update to help predict potential engine failure is further proof of this commitment.

Kia owners are encouraged to contact Kia Consumer Affairs at 1-800-333-4542 with any questions on this matter.

Both automakers say they sent claim forms to affected drivers last year. The payouts could start to flow in the coming weeks.

Details on the settlement and payouts can be found here: HMA Engine Settlement