Hyundai and Kia have entered into an agreement to resolve class action litigation with owners of certain vehicles equipped with 2.0L and 2.4L GDI Theta II gasoline direct injection (GDI) I4 engines. The agreement will provide 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. It also provides additional remedies to address engine concerns and assist customers with these vehicles. Vehicles in the settlement include 2.3 million Hyundai's and 1.8 million Kia's including the following: 2011-2019 Sonata 2013-2018 Santa Fe Sport 2019 Santa Fe 2014, 2015, 2018, and 2019 Tucson 2011-2019 Sportage, Sorento and Optima Terms of the settlement include Cash reimbursement for certain past repairs and related expenses, such as towing and rental cars Cash compensation for certain past trade-ins, sales, and in lieu of certain repairs Free inspection and repair or replacement of damaged engines Lifetime warranty coverage for short block assembly repairs for original and subsequent owners Free installation of the knock sensor detection system software update Various goodwill compensation for customers inconvenienced by previous lengthy engine repair times, denied warranty coverage, and vehicle loss of value, among other provisions The Court is expected to review the proposed settlement for preliminary approval in October 2019. Assuming preliminary approval is granted, notices will be sent to individual class members pursuant to the terms of the settlement. Knock Sensor Detection System Software Update Each of these vehicles is part of an ongoing product improvement campaign to install an engine monitoring technology called a knock sensor detection system. The technology uses software innovations and leverages existing engine sensors to continuously monitor for symptoms that may precede an engine failure. It is installed free of charge for all vehicles in the settlement by Hyundai and Kia dealers. The knock sensor detection system software continuously monitors engine vibrations for unusual dynamic patterns that develop as an engine connecting rod bearing wears abnormally in a way that could later cause engine seizure. If vibrations caused by bearing wear start to occur, the malfunction indicator lamp will blink continuously and the vehicle will be placed in a temporary engine protection mode with reduced power and acceleration. In this temporary mode, drivers maintain full control of the vehicle as brakes, steering and safety devices such as airbags remain operational. The vehicle can continue to be operated for a limited time in engine protection mode to enable the customer to safely drive it to a dealer for inspection and repair, but acceleration will be slower, with a reduced maximum speed of approximately 60 to 65 mph and a limited engine speed of approximately 1,800 to 2,000 rpm. The knock sensor technology has been evaluated by an independent, leading engineering and scientific consulting firm. When tested using a fleet of vehicles specifically prepared to test the knock sensor technology, the knock sensor system successfully detected failing connecting rod bearings and responded with activation of the engine protection mode.