Class action launched against Hyundai and Kia over 'defective' engines

Korean carmakers Hyundai and Kia are facing further court action – this time at a federal level – over what lawyers are calling 'defective' engines.

Class actions have been filed in the Federal Court of Australia relating to defective engines in various Hyundai and Kia vehicles sold in Australia from 2011 to date.

The actions, being financed by UK-based litigation funder Woodsford but represented by law firm Johnson Winter Slattery, allege the vehicles sold by Hyundai and Kia in Australia were offered for sale with engines that were manufactured or designed defectively.

These include the 4-cylinder Theta II MPI, Theta II GDI, Gamma II GDI or Nu GDI petrol engines.

As a result, it is claimed said engines have the propensity to exhibit faults – such as a sudden loss of power (including while driving), increased oil and fuel consumption, emission of smoke, and, in some cases, fire.

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In addition, it is claimed that Hyundai and Kia knew of the engine issues since at least 2015, but continued to sell affected vehicles.

“We are determined to hold them to account and ensure that Australian consumers receive the compensation they are due,” said Woodsford’s Chief Investment Officer, Charlie Morris.

“We are pleased to have been selected to run this important case, which raises serious issues regarding the reliability and safety of a very large number of vehicles sold to the Australian public, when Hyundai and Kia were in the process of recalling millions of vehicles overseas for similar engine issues,” added Robert Johnston, Partner at Johnson Winter Slattery.

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A spokesperson for Hyundai told Wheels: "Hyundai Motor Company Australia stands by the integrity and reliability of its vehicles. We are disappointed about the class actions but will consider the allegations carefully before commenting further."

"Kia Australia has very recently been notified of the filing of this class action and as this is a legal matter, will not be making any further comments at this stage," a Kia spokesperson added.

The case is entirely separate from another, launched in a Victorian court in January, over a fault with the braking system in several popular models said to also create a 'fire hazard'.

As many as 194,808 cars could potentially be involved across a range of models, including the best-selling Tucson and Sportage SUVs. At the time law firm Maurice Blackburn Lawyers had already lodged a class action against Hyundai with the Supreme Court of Victoria, and was preparing a similar case against fellow Korean car giant Kia.

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Hyundai vehicles affected

Kia vehicles affected

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Owners of affected Hyundai and Kia cars can register for the class actions by providing their details at www.hyundaiengineclassaction.com.au (for Hyundai vehicles) or www.kiaengineclassaction.com.au (for Kia vehicles).

In addition to these class actions against Hyundai and Kia, Woodsford is currently backing numerous other major class actions in Australia, the UK, and Europe including those brought by consumers against Mitsubishi Motors Australia, Toyota, Westpac and ANZ Bank.