Hyundai and Kia are back in the spotlight, and not for a new car launch. The two South Korean automakers are facing a major class action lawsuit in the United States involving faulty airbag control units. The issue? Defective airbags supplied by ZF-TRW, which failed to deploy during collisions. Sound familiar? That’s because it mirrors similar problems faced by Mitsubishi and Toyota, both of whom also dealt with defective airbag systems and hefty legal consequences. In Hyundai and Kia’s case, they’ve agreed to a $62.1 million settlement—without admitting any wrongdoing.
Lawsuit
The class action lawsuit was filed on April 14, 2025, by both current and former vehicle owners, as well as leasing customers. The complaint centers around airbags that failed to deploy during accidents, leading to serious safety concerns. These airbags were supplied by ZF-TRW, the same manufacturer involved in other major airbag scandals.
Here are the most commonly affected models:
| Brand | Model | Model Years |
|---|---|---|
| Hyundai | Sonata | 2011–2019 |
| Hyundai | Sonata Hybrid | 2011–2019 |
| Hyundai | Kona | 2018–2023 |
| Hyundai | Kona N | 2022–2023 |
| Hyundai | Veloster | 2019–2021 |
| Kia | Forte | 2010–2013 |
| Kia | Forte Koup | 2010–2013 |
| Kia | Optima | 2011–2020 |
| Kia | Optima Hybrid | 2011–2016 |
| Kia | Sedona | 2011–2012, 2014 |
If you owned or leased one of these vehicles as of April 14, 2025, you may be eligible for compensation.
Settlement
Even though Hyundai and Kia are not admitting to any defect or legal violation, they’ve agreed to a settlement worth $62.1 million. The funds will cover a variety of expenses for those affected. Here’s what’s included:
- Reimbursement for the cost of repairs related to airbag failure
- Towing and rental car costs
- Child care expenses incurred due to vehicle repair
- Lost wages resulting from the issue
- Residual payments of $350 for recalled vehicles, and $150 for vehicles not yet recalled
- A new extended warranty for recalled vehicle parts
- Inspection program to monitor performance
- Full reimbursement for loans or leased vehicle costs
In short, Hyundai and Kia are paying up to avoid dragging this into a long courtroom battle—and customers get at least some compensation for their trouble.
Timeline
If you’re one of the affected vehicle owners or leasees, here’s what you need to know about the timeline:
| Important Date | Action |
|---|---|
| August 25, 2025 | Last day to file objections |
| September 29, 2025 | Final approval hearing |
| March 29, 2027 | Deadline to file a valid claim |
Make sure you don’t miss these dates if you want to be part of the settlement benefits.
Background
Hyundai and Kia operate under the Hyundai Motor Group umbrella but are separate entities. While they share technology and R&D, their vehicle lineups and business models are distinct. Both brands have long been praised for quality and reliability, which makes this safety issue even more concerning for loyal customers.
This isn’t the first time airbag defects have led to class action lawsuits. Toyota and Mitsubishi were recently hit with their own legal troubles over similar issues. Toyota settled for $8.5 million, but claims and objections are still ongoing. These repeated incidents raise major concerns about quality control across the entire auto industry.
What now?
If you’re eligible and want to receive benefits, filing a claim before the March 2027 deadline is key. You can also choose to object to the terms, but that must be done by August 25, 2025. If you do nothing, you won’t receive any reimbursement or protection—even if your vehicle is on the list.
Keep an eye on your mailbox and inbox for official notices, and make sure you visit the official claim site to complete the necessary steps. With airbag safety at the center of this legal battle, this class action might not just mean compensation—it might just help prevent future failures from putting drivers at risk.
FAQs
Which Hyundai models are affected?
Sonata, Kona, Kona N, Veloster from 2011–2023.
How much is the Kia-Hyundai settlement?
The total settlement is valued at $62.1 million.
When is the final hearing?
The hearing is scheduled for September 29, 2025.
Can I still file a claim?
Yes, by March 29, 2027.
What’s included in the reimbursement?
Repairs, rental, child care, lost wages, and more.
