Hyundai Engine
Class Action

Class action against Hyundai in relation to

defective engines

Funder: Woodsford
Lawyers: Johnson Winter Slattery

Note: This website relates to the class action proceedings against Hyundai in relation to alleged defects in the engines of various vehicles sold in Australia since 2011. It is separate, and unrelated, to separate class action proceedings being pursued or investigated against Hyundai relating to alleged defects in anti-lock braking (ABS) systems.

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Hyundai Engine Class Action

Class action against Hyundai in relation to

defective engines

Funder: Woodsford
Lawyers: Johnson Winter Slattery

Learn More

Overview

Claim against Hyundai

Affected vehicles

Overview

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On 15 February 2023, class action proceedings were commenced against Hyundai (the Australian entity, Hyundai Motor Company Australia Pty Limited, and its South Korean parent, Hyundai Motor Company) in the Federal Court of Australia in relation to defective engines in various Hyundai vehicles sold in Australia from 2011 to date.

The proceedings are action no. NSD 131 of 2023 in the Federal Court of Australia.

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The action is being funded by Woodsford, a leading global ESG, access to justice and litigation finance business. The applicant is represented by law firm Johnson Winter Slattery.

A separate but similar proceeding has also been commenced against Kia.

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Hyundai filed its defence to the claim in July 2023. In its Defence:

Hyundai admits that a small number of Hyundai i45 and Santa Fe vehicles were subject to a manufacturing process in which there was risk that excessive swarf would remain in the crankshaft assembly. Hyundai says that it recalled all of those vehicles so that they could be inspected and so that any engine found to contain excessive swarf from the manufacturing process (which could lead to some of the faults alleged in the claim) could be replaced;
Hyundai admits that the engines in a small number of Hyundai Kona and Veloster vehicles were manufactured using brittle piston rings. Hyundai says that it recalled all of those vehicles so that they could be inspected and so that any engine found to contain cracks in the piston rings leading to scuffing of the cylinder bores (which could lead to some of the faults alleged in the claim) could be replaced;
Hyundai admits that defective software (which could lead to some of the faults alleged in the claim) was installed in a small number of Hyundai Veloster vehicles. Hyundai says that it recalled all of those vehicles and updated or replaced the software;
Hyundai admits that, until they were repaired, the above vehicles did not comply with the statutory warranty of acceptable quality;
Hyundai admits that, until they were repaired, the above vehicles did not comply with the express warranties pleaded in the claim;
Hyundai admits that, until they were repaired, it made misleading or deceptive representations in relation to the above vehicles that they were of good quality, reliable, durable, fit for purpose and safe;
but Hyundai says that owners of the above vehicles are not entitled to recover damages for any reduction in the value of the vehicles because Hyundai has remedied the failure;
Hyundai also says that any failure in relation to the piston rings occurred only because of the act, default or omission of the supplier of the piston rings; and
other than in respect of the limited group of vehicles referred to above, Hyundai denies all of the allegations.

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As at September 2024, Hyundai has been ordered to produce further documents over the next six months. Class action litigation can be a slow process, and we thank you for your patience. Please see the ‘Key Events’ page for a more detailed timeline of the proceedings.

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If you own an Affected Vehicle covered by the Hyundai Engine Class Action and have recently experienced a serious engine failure (i.e. your vehicle is undriveable in its current state, and the engine needs to be replaced or repaired), please email us at contact@hyundaiengineclassaction.com.au and tell us about your engine failure. An inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this. We note that we are currently primarily looking to inspect vehicles of those group members who reside in New South Wales. If your engine has already been repaired or replaced, there is no need to contact us unless you still possess the failed engine. Don’t forget to register your interest if you haven’t already!

Claim against Hyundai

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The action alleges that numerous vehicles sold by Hyundai in Australia since 2011 (see the list below) were sold with engines that were manufactured and/or designed defectively and, as result, have the propensity to exhibit faults, including:

knocking or tapping sounds;
internal damage to the engine;
increased oil and/or fuel consumption;
sudden loss of power (including while driving) and engine failure;
the emission of smoke from the engine compartment; and/or
in some cases, fire.

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As a result, the action alleges that the vehicles sold by Hyundai:

failed to comply with the statutory warranty provided by the Australian Consumer Law that goods sold to consumers are of acceptable quality; and
failed to comply with the express warranties contained in their advertising material about the vehicles’ quality, reliability, durability and safety.

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In addition, it is claimed that Hyundai had or accumulated knowledge of the engine issues since at least 2015 (when various recall notices were first issued for similar vehicles in the United States), but continued to sell them in Australia without notifying the Australian car buying public (except for a very limited Australian recall campaign). It is alleged that Hyundai engaged in misleading or deceptive conduct in advertising and promoting the vehicles in Australia as being good quality, reliable, durable, fit for purpose and safe.

The class action seeks damages and compensation on behalf of all group members.

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Affected vehicles

The vehicles covered by the class action include certain 4-cylinder petrol-engined variants (with Theta II MPI and GDI, Gamma GDI and Nu GDI engines) of the following models (and model years):

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Model range	Series	Engine size and type	Model year (MY)*
Accent (hatch and sedan)	RB	1.6L Gamma II GDI	2013-2019
i30 (hatch and wagon)	GD	1.6L Gamma II GDI	2012-2016
i30 (hatch)	GD and PD	2.0L Nu GDI	2014-2022
i30 SR and N Line (hatch)	PD	1.6L Gamma II GDI Turbo	2018-2022
i30 N (hatch, sedan and coupé)	PD and CN7	2.0L Theta II GDI Turbo	2018-2023
Elantra SR Turbo and Sport (sedan)	AD	1.6L Gamma II GDI Turbo	2017-2020
i40 (sedan and wagon)	VF	2.0L Nu GDI	2011-2018
Sonata (sedan)	NF	2.4L Theta II MPI	2009
Sonata (sedan)	LF	2.4L Theta II GDI	2014-2019
Sonata (sedan)	LF	2.0L Theta II GDI Turbo	2014-2019
i45 (sedan)	YF	2.4L Theta II GDI	2010-2011
i45 (sedan)	YF	2.0L Theta II MPI	2011
Veloster (hatch)	FS	1.6L Gamma II GDI	2011-2017
Veloster (hatch)	FS and JS	1.6L Gamma II GDI Turbo	2012-2020
Kona (SUV)	OS	1.6L Gamma II GDI Turbo	2018-2020
Kona N (SUV)	OS	2.0L Theta II GDI Turbo	2022-2023
ix35 (SUV)	LM	2.0L Theta II MPI	2010-2013
ix35 (SUV)	LM	2.4L Theta II MPI	2010-2013
ix35 (SUV)	LM	2.0L Nu GDI	2013-2015
ix35 (SUV)	LM	2.4L Theta II GDI	2013-2015
Tucson (SUV)	TL	2.0L Nu GDI	2015-2021
Tucson (SUV)	TL	1.6L Gamma II GDI Turbo	2015-2021
Santa Fe (SUV)	DM and TM	2.4L Theta II GDI	2013-2020
iLoad (van)	TQ-V	2.4L Theta II MPI	2008-2017
iMax (people mover)	TQ-W	2.4L Theta II MPI	2008-2017

* Model year may be different to the year of release or sale

Customers who bought or leased one of the affected vehicles with a relevant engine after 1 January 2011, whether new or used, may be group members in the class action. The actions affect potentially hundreds of thousands of vehicles sold in Australia over that period.

Register your interest

If you purchased or leased one of the vehicles mentioned above with a 4-cylinder Theta II MPI or GDI, Gamma GDI or Nu GDI petrol engine, you may be a group member in the class action. This may be the case regardless of:

whether you purchased your vehicle new or second hand

whether you still own your vehicle or have already sold it

whether you experienced any of the engine faults referred to above or not

whether your vehicle or its engine has already been repaired or replaced (by Hyundai or someone else, under warranty or otherwise)

If you think you may be a group member, you can register your interest in being part of the class action by completing the registration form below.

NOTE TO ALL NEW SOUTH WALES RESIDENTS: If you own an Affected Vehicle covered by the Hyundai Engine Class Action and have recently experienced a serious engine failure (i.e. your vehicle is undriveable in its current state, and the engine needs to be replaced or repaired), please email us at contact@hyundaiengineclassaction.com.au and tell us about your engine failure. An inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this. We note that we are currently primarily looking to inspect vehicles of those group members who reside in New South Wales. If your engine has already been repaired or replaced, there is no need to contact us unless you still possess the failed engine.

Frequently asked questions

Everything you need to know about this class action

1. What is a class action?

A class action (also known as a representative proceeding) is a legal proceeding where seven or more people have claims against the same individual or corporation in respect of or arising out of similar circumstances and their claims give rise to a substantial common issue of law or fact. Where these criteria are met, class action proceedings can be commenced by one or more of those people (the applicants) on behalf of some or all of them. A class action enables disputes and claims involving large numbers of people to be resolved via a single case.

2. What is the Hyundai Engine Class Action about?

The action alleges that numerous vehicles sold by Hyundai were sold with engines that were manufactured and/or designed defectively and therefore did not comply with statutory warranties to as to acceptable quality or express warranties in advertising material about the vehicle’s quality, reliability, durability and safety, and that Hyundai’s advertising of the vehicles was misleading or deceptive. For more information about what is alleged in the proceeding and the nature of the alleged defects, please click here.

3. Which Hyundai vehicles are affected?

The vehicles covered by the class action include certain 4-cylinder petrol-engined variants with Theta II MPI and GDI, Gamma GDI and Nu GDI engines.

MPI refers to engines with multi-point injection, and GDI refers to engines with gasoline direct injection.

Your vehicle has a Theta II MPI engine if it has an engine number or code starting with G4KD (2.0 litre), G4KE (2.4 litre) or G4KG (2.4 litre).
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Your vehicle has a Theta II GDI engine if it has an engine number or code starting with G4KH (2.0 litre turbo) or G4KJ (2.4 litre).
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Your vehicle has a Gamma II GDI engine if it has an engine number or code starting with G4FD (1.6 litre) or G4FJ (1.6 litre turbo).
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Your vehicle has a Nu GDI engine if it has an engine number or code starting with G4NC (2.0 litre).

Customers who bought one of the affected vehicles with a relevant engine after 1 January 2011, whether new or used, may be group members in the class action. The actions affect potentially hundreds of thousands of vehicles sold in Australia over that period. For a list of the affected vehicles models, please click here.

4. What if my vehicle is not listed above?

If your vehicle is not one of the those listed above, and does not have one of the particular engines types listed above, you will not be a member of the class action (unless the list of affected vehicles changes in the future to include your vehicle).

In particular, please note that vehicles with 6-cylinder engines, and vehicles with diesel engines, are not currently covered by the class action.

5. Are diesel-engined vehicles included?

Vehicles with diesel engines are not currently covered by the class action.

6. Does the Hyundai Engine Class Action extend to people outside of Australia?

Currently, the Hyundai Engine Class Action only extends to consumers who have purchased Affected Vehicles in Australia.

7. Am I a group member?

You may be a group member in the class action if between 1 January 2011 and 15 February 2023:

·      you purchased or leased an Affected Vehicle (see the list of Affected Vehicles here); and
·      you did not acquire the Affected Vehicle in an auction; and
·      you did not acquire the Affected Vehicle for the purposes of re-supply; and
·      you acquired the Affected Vehicle from a Hyundai dealership or other retailer (such as a used car dealer) or from any person who acquired the vehicle directly from a Hyundai dealership or other retailer.

If you meet the criteria described above, and your vehicle is one of the Affected Vehicles with the necessary engine type, then you are automatically a group member and do not need to take any further steps to become one. Group members will be bound by the outcome of the class action unless they take steps to “opt out” of the Proceeding.

If you think you may be a group member, but are not sure, we encourage you to register your details here.

8. Do I need to register or sign up to be a group member?

No, anyone who acquired an Affected Vehicle (see the list of Affected Vehicles here) and otherwise satisfies the relevant criteria is automatically a group member unless and until they opt out of the class action. However, if you think you may be a group member, we encourage you to register with us here, which will make it easier for us to contact you and provide you updates and notices in relation to the class action. It will also mean that we have your contact details on record in the event there is an outcome (such as a settlement or a judgment of the court) which results in damages being awarded to group members.

9. I have registered for the class action. What do I need to do now?

At this stage, we are still processing registrations. The Court has not yet made any orders in relation to specific communications with group members. There are no further steps you are required to take at this time. You will be informed in due course when any further action is required.

10. I bought my vehicle second hand. Am I a group member?

The proceeding has been commenced on the basis that individuals who acquired an Affected Vehicle second hand may be group members so long as they acquired the Affected Vehicle:
·     from a Hyundai dealership;
·     from another retailer (such as a used car dealer); or
·     from any person who acquired the vehicle from a Hyundai dealership or other retailer.

You will not be a group member if you acquired the Affected Vehicle at auction or for the purposes of re-supply, or from a person who acquired the Affected Vehicle for the purposes of re-supply.

11. I’ve already sold my vehicle. Am I a group member?

Yes, so long as at the time you acquired the Affected Vehicle you met the criteria described in the answer here, you will be what is called a “Group B Member” in the proceeding.

12. I have not experienced any issues with my vehicle’s engine yet. Am I a group member?

Yes, so long as at the time you acquired the Affected Vehicle you met the criteria described in the answer here.

13. I am currently experiencing problems with the engine in my Hyundai – what should I do?

If you own an affected vehicle covered by the Hyundai Engine Class Action and are currently experiencing problems with the engine of the kind described above, you should first contact Hyundai and/or your local Hyundai dealer about the problems to see whether Hyundai is willing to repair your vehicle (whether your vehicle is still under warranty or not).

If your engine has recently suffered a serious failure (such as a complete engine failure or fire) and has not yet been replaced, please also contact us at contact@hyundaiengineclassaction.com.au as an inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this.

If you have the problems with your vehicle inspected or diagnosed by a Hyundai dealer or other independent mechanic or expert, you should seek a report of their findings in writing and retain a copy, together with any records of the costs you incurred in relation to the inspection.

If you have your vehicle repaired, you should keep copies of all records and communications associated with the repair and the costs of the repair (including associated costs such as loan car or transport costs, loss of income, etc. while you are without the use of your vehicle while it is being repaired).

If Hyundai is unwilling to repair your vehicle without charge, and you are unable or unwilling to pay the cost to repair your vehicle yourself (including potentially replacing the engine), you should keep copies of all records and communications associated with the costs you incur as a result of the engine problems, such as the costs of purchasing a replacement vehicle or using alternative transport (such as public transport or a loan car), loss of income, etc. while you are without the use of your vehicle. We also recommend that you keep records of all of your communications with Hyundai and/or the relevant Hyundai dealer in relation to your vehicle.

If your decide to sell your vehicle, you should keep copies of all records and communications associated with the sale, particularly if the price you are able to sell your vehicle for is less because of the problems you are experiencing with the engine.

14. I do not want to be a group member. What do I do?

The proceeding is an “open class action”, meaning the applicant has commenced the class action on behalf of all group members. In an open class action, any group member who does not wish to participate must “opt out” of the class action. This process is regulated by the Court and will most likely involve all group members receiving a notice in due course which describes how they can elect to opt of the proceeding if they wish to do so.

15. What will it cost me to be part of the class action?

Group members will not be responsible for legal costs incurred in the prosecution of the claims against Hyundai by the applicant.

16. How long will the class action take?

It is not possible to say exactly how long the proceeding will take. The proceeding was commenced on 15 February 2023. Class actions can be quite long, and could take anywhere from six months to several years for the claims to be heard and determined or otherwise resolved.

17. Who are the lawyers running the proceeding?

Johnson Winter Slattery are the solicitors on the record in the proceeding for the applicant.

18. I have registered for the class action. Can the Hyundai Engine Class Action Team provide me with individual legal advice?

Unfortunately, we are unable to provide you with legal advice regarding your individual situation. As lawyers, we act for the lead applicant in the proceedings. We do not act as the lawyers for the group members, but are required to act in the interests of the group members as a whole.
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While we are unable to provide legal advice regarding your individual situation, if you have experienced or are currently experiencing issues with the engine in your vehicle (see FAQ 13), you should keep written records of any costs you incur in making repairs to your vehicle, or any costs you incur as a result of the difficulties you are having with your vehicle (such as loan car or transport costs, loss of income, etc. while you are without the use of your vehicle).
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We also recommend that you keep records of any communications with Hyundai and/or the relevant Hyundai dealer in relation to problems you are having with your vehicle.
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If your engine has recently suffered a serious failure (such as a complete engine failure or fire) and has not yet been replaced, please also contact us at contact@hyundaiengineclassaction.com.au as an inspection of your vehicle may be of assistance in the conduct of the class action. We can discuss with you further what would be required to facilitate this.

19. Who is funding the proceeding?

The proceeding is being funded by Woodsford, a leading global ESG, access to justice and litigation finance business.