Korean automakers Hyundai and Kia reached a major settlement Friday in a lawsuit over class actions on vehicle failure and engine fire.
The monetary amount for the lawsuit is $ 758 million, Reuters reports.
"This settlement will put money in the pocket of car owners and landlords and increase safety and reliability," said Adam Gonnelli, of The Sultzer Law Group PC.
The two automakers, which are part of the Hyundai Motor Group, have been facing fire investigations and investigations into a number of Hyundai and Kia models sold in the United States. The payment could affect owners of up to 4.1
Apart from monetary compensation, Hyundai Motor Group announced both Kia and Hyundai will also provide additional business assistance to customers.
"Reflecting our commitment to customer satisfaction, Hyundai is pleased to resolve this lawsuit," Hyundai Motor America's Legal Director Jerry Flannery said. "This settlement recognizes our sincere willingness to take care of customers affected by problems with this engine's performance and recognizes the many actions we are already taking to help our customers."
The more than 2.3 million Hyundai vehicles covered during the settlement include the 2019 Santa Fe SUV, Santa Fe Sport SUV 2013-2018, Sonata 2011-2019 and Tucson SUV 2014, 2015, 2018 and 2019.
For The Kia includes 1.8 million vehicles covered during the settlement all 2011-2019 Optimas, Sorento SUVs and Sportage SUVs equipped with 2.0-liter and 2.4-liter GDI engines.
"While we are excited to see Hyundai and Kia finally acknowledge responsibility for these millions of vehicles that are subject to fire without crash, we look forward to seeing the details of the proposed settlement to understand if this will really make the whole who have lost the vehicles to fires and those who continue to be at risk of driving them, says Jason Levine, CEO of the Center for Auto Safety.
Levine also told News 6, "Furthermore, we can't help but wonder: If Kia and Hyundai have nearly a billion dollars to cover the costs of litigation, one would think they would have the resources available to remember and fix their cars before more of them catch fire, and endanger the lives of everyone on the road. "
According to a Hyundai news release, the nearly $ 760 million will go toward" cash reimbursement for certain past repairs and related expenses "and" cash compensation. for certain previous exchanges, sales and instead of certain repairs. "
Additional non-cash compensation terms for the settlement include:
• Free inspection and repair or replacement of damaged engines
• Lifetime Warranty Cover for Short Block Repairs for Original and Subsequent Owners
• Free software update update of knock sensor detection system
• Various allowances for goodwill for customers who have not been pleased with previous long engine repair times, denied warranty coverage and loss of value, among other provisions
Hyundai and Kia had previously recalled around 1.7 million cars and SUVs due to fire problems.
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