Owners Say Hyundai Won't Cover Transmission Defect

[06StangAwesomecar]

Automotive News

 

 

By Mark Rechtin

 

 

Aug. 7, 2006

 

 

LOS ANGELES -- A lawsuit filed against Hyundai Motor America alleges that

the automaker installed faulty clutches in 2003 model Tiburon coupes but

refuses to honor warranty claims for them.

 

The suit, filed in federal court in Los Angeles , contends that Tiburon

owners had warranty claims that were denied on manual-transmission vehicles

with less than 30,000 miles on the odometer.

 

Lawyers may expand the suit to include 2004 model Tiburons as well.

 

The lawsuit could be a black eye for Hyundai, which has been among the

leaders in the J.D. Power Initial Quality Study for the past three years.

 

The stricter Vehicle Dependability Index - which measures problems during

the first three years of ownership, rather than the 90-day period of the

initial quality survey - will be released this week.

 

Many of the plaintiffs are outraged that Hyundai promotes a

10-year/100,000-mile powertrain warranty but won't pay to repair clutches

expiring well before that. Replacement of a clutch can cost as much as

$2,000 in parts and labor.

 

The lawsuit alleges Hyundai knew the clutches installed in Tiburons with

2.7-liter engines were inferior.

 

Plaintiffs' attorneys are seeking class-action status for the suit.

 

According to the National Highway Traffic Safety Administration's Web site,

Hyundai issued a service bulletin about revised clutch components for the

Tiburon's manual transmission. Another bulletin instructed technicians in

the installation of the dual mass flywheel and clutch disc assembly. A

third discussed the repair policy for the manual transmission.

 

"There is a recognized failure rate for any component part," said plaintiff

lawyer Eric Gibbs, partner with Girard Gibbs in San Francisco . "We believe

that Hyundai greatly exceeded that in terms of repairs. They have

redesigned the clutch and flywheel mechanisms in the newer models, and we

are not seeing the complaint rate of the earlier ones."

 

Hyundai spokesman Miles Johnson said Hyundai does not honor clutch

replacement claims because "the clutch is considered a regular wear item."

 

He added: "They wear out and need to be replaced depending on how the car

is driven, just like brakes or tires. Dealers are not refusing warranty

repairs on Tiburon clutches. They are evaluating them on a case-by-case

basis. It all depends on the technician's inspection."

 

Johnson couldn't say how many warranty claims had been honored.

 

Bill Parfitt Jr., of Pasadena , Md. , has a 2004 Tiburon and is trying to

join the class-action suit. His first clutch blew at 16,500 miles. He lost

his second clutch just 4,000 miles later, and he had to replace the

flywheel, too.

 

Hyundai refused to honor the warranty in either case, although the dealer

sold Parfitt the parts at cost.

 

"I'm 47 years old, driving clutches my whole life, and I've never worn out

a clutch," Parfitt said in an interview. "The clutch didn't just slip a

little bit and get worse; it just went out in the middle of downtown

Baltimore . And Hyundai says it's a wear item. I've never been treated so

stupidly in all my life."

 

 

:happy feet:

[bec5150]

Without seeing how many failed, it's difficult to make a judgement either way. I do know that throw out bearings can wear like the clutch linings and, in the hands of a person that is clueless about driving a stickshift, can go out in a hurry. I am interested in how many folks are on the lawsuite.

[range]

'06StangAwesomecar -

 

Sounds like Hyundai is taking a page from Honda Customer Disservice. In other words, blame anyone but the company that designed and built the product.

 

Here is more info on the class action. Hyundai issued a TSB in March 2004 for "deformed" clutch components for those model years.

 

 

"Upon further investigation, lawyers discovered that Hyundai found the clutch problem unusual as well and issued a Technical Service Bulletin to its dealers in March 2004 referring to the 2003 Tiburon’s clutch components as “deformed,†and advised that the clutch could be repaired by replacing certain parts with new, non-deformed parts.

 

Surprisingly, when Tiburon owners came to dealerships to repair the defect, Hyundai blamed the premature failure on the owner’s driving habits and refused to cover any costs for replacement parts or for labor to repair the defect. "

 

 

 

Americas best warranty???.....not if they look for excuses not to honor it.

Edited August 10, 2006 by range

[OAC_Sparky]

Bill Parfitt Jr., of Pasadena , Md. , has a 2004 Tiburon and is trying to

join the class-action suit.

 

Parfitt said in an interview. "I've never been treated so

stupidly in all my life."

:happy feet:

I guess if you are stupid enough to buy a Korean sports car, people should treat you stupidly. :bandance:

[StevenJ]

I guess if you are stupid enough to buy a Korean sports car, people should treat you stupidly. :bandance:

 

I'm feeling neutral towards that. Can't say I wholely agree but I certainly don't disagree !

[kevinb120]

You mean that not only are they trying to style them like Honda's, they are trying to treat major problems the same way as them now? :shrug:

 

You go now, no trouble!

[bec5150]

Boy, aren't we quick to pass judgement. When owners of the Ford Explorer filed suite against Ford and Firestone, it's a bunch of money hungry greedy owners. Now that the same thing is happening to Hyundai, it's the auto maker's fault.

 

Love the bias, folks. As I said earlier, I will reserved judgement until I see how many owners are on the suite.

[OAC_Sparky]

While my comment was made tongue in cheek, I'm surprised that you're surprised there'd be bias in a Ford Forum. :huh:

[ANTAUS]

I know 2 people who have had issues getting their Kia/Hyundai serviced. They say they are covered for 5/60K yet, it's very hard for them to get anything fixed, and mostly ends up as being patched up jobs. But it'll still be awhile before this hits the media...takes a few years though...

[NickF1011]

Without seeing how many failed, it's difficult to make a judgement either way. I do know that throw out bearings can wear like the clutch linings and, in the hands of a person that is clueless about driving a stickshift, can go out in a hurry. I am interested in how many folks are on the lawsuite.

 

Heck, I LEARNED to drive stick on my '97 Cobra...and I haven't exactly babied it since then. Here I am getting ready to turn 100K on the odometer, and the original clutch is still ticking. I've already got well over 40K on my '04 Mazda6 and the clutch feels the same as the day I drove it home as well.

 

Side note FYI: I live near Pasadena, MD....not exactly known as a mecca of high class civilization, so....take that for what it's worth.

[bec5150]

On the other side, I remember buying a Honda del Sol a number of years ago. It had 65K on the clock and we rode in the car to get the title work done. I swear she never used first gear. Instead, first gear was her riding the clutch in second. I knew right then the thing was going to need a clutch.

 

Sure enough, about three weeks after I got it, the throw out bearings started howlin....

 

Regarding the Hyundai clutch, the damn thing must be gold plated. Over $2000!!?? That's nuts!!

[OAC_Sparky]

Considering parts availability and the amount of room to work on it (meaning having to drop the whole engine), $2G isn't that farfetched.

 

One winter in my Ranger I hit a frozen jug of water on the highway at 60MPH, cracked the hydraulic line at the slave cylinder, which proceeded to leak and ruined my clutch. Needed it done ASAP, was the middle of winter and at the time I had a carport instead of a garage, still cost me $1200 and they're fairly easy to work on.

Edited August 10, 2006 by OAC_Sparky

[ebritt]

Doesn't surprise me. The warranty means nothing if the company doesn't honor it.(insert FORD here.)

My ex-wife's Hyundai is still broke. Three years old, less than 30,000 miles, and you have to crawl out the front passenger door to get out.

Not that I am complaining or anything. :D

[Ovaltine]

Doesn't surprise me. The warranty means nothing if the company doesn't honor it.

My ex-wife's Hyundai is still broke. Three years old, less than 30,000 miles, and you have to crawl out the front passenger door to get out.

Not that I am complaining or anything. :D

 

Keeping it real, Pioneer, didn't you say that your wife is the *second* owner of that car in another thread?

 

Granted, Hyundai SHOULD offer a transfer option for second owners. I've stated as much in that previous thread. That is one deficit they still apparently have to overcome.

 

But...... Hyundai did NOT actually offer your wife any kind of warranty commitment, thus there is nothing to honor. Had she been the original owner, the warranty would have been honored.

 

My Coleman pop-up camper has the same type of warranty. As long as I own it, the roof is warrantied. If I sell it to someone, the warranty is over.

 

-Ovaltine

Edited August 10, 2006 by Ovaltine

[OAC_Sparky]

The general car-buying public doesn't know that the warranty doesn't extend to non-original buyers.

 

If they did people wouldn't be as gung ho over Hyundai's "great warranty". And that would reflect more in their resale value.

[bec5150]

The powertrain 10 year/100K warranty, from Hyundai, is such:

 

Covers repair or replacement of powertrain components (i.e. selected Engine and Transmission/Transaxle components), originally manufactured or installed by Hyundai that are defective in material or factory workmanship, under normal use and maintenance. Coverage applies to Original Owner only effective with 2004 Model Year and newer model year vehicles. On 1999-2003 Model Years, coverage applies to Original Owner and immediate family members (i.e. wife, husband, daughter, son, stepdaughter, stepson).

 

Second and/or subsequent owners have powertrain components coverage under the 5 year / 60,000 mile New Vehicle Limited Warranty. Excludes coverage for vehicles in commercial use (i.e. taxi, route delivery, delivery service, rental, etc.).

 

So the second owner, if not immediate family, still gets 5year/60K. That ain't bad....

[Ovaltine]

The general car-buying public doesn't know that the warranty doesn't extend to non-original buyers.

 

If they did people wouldn't be as gung ho over Hyundai's "great warranty". And that would reflect more in their resale value.

 

 

You are probably right about the unawareness of the used-car buyer population. It would be interesting to know how many private buyer deals are made where the new owners *think* or are told by dishonest or mistaken owners that the warranty is transferrable. This is one area that Hyundai/KIA should re-examine and offer some kind of option for, if they want to stay competitive with the other manufacturers.

 

I suspect that if the used car's bought used from an actual Hyundai/KIA dealer, some kind of warranty is given. Each dealership is probably different, unless Hyundai/KIA are making attempts at enforcing standardization in the handling of Hyundai/KIA trade-ins and resales.

 

 

The "great warranty" is still there though for original buyers. I've read enough blogs/forums where KIA replaced a tranny, engine component, etc. at 86K on someone's older than 5 years Rio or Sedona without too much grief. If the maintenance schedule was followed and receipts produced, the work got done.

 

In all honesty, I've had a couple of very minor things repaired on my Spectra (things that many people would have probably overlooked). One of these repairs required an expensive part (a headlight assembly... moisture had gotten in), and the both KIA and dealership said "No problem!". The ordered the part (which came in less than a week), notified me, took me in the next day and did it while I waited. No fuss, no muss.

 

I suspect that my bumper-to-bumper treatment will continue for the next 3 years (car just turned 2) based the warranty verbiage. After that I've got another 5 years/40K possible on the drivetrain.

 

The key though I've read, is to DEFINITELY follow the severe maintenance formula, and keep your receipts! Common sense type of stuff for ANY warrantied car.

 

-Ovaltine

Edited August 11, 2006 by Ovaltine

[Ovaltine]

The powertrain 10 year/100K warranty, from Hyundai, is such:

 

Covers repair or replacement of powertrain components (i.e. selected Engine and Transmission/Transaxle components), originally manufactured or installed by Hyundai that are defective in material or factory workmanship, under normal use and maintenance. Coverage applies to Original Owner only effective with 2004 Model Year and newer model year vehicles. On 1999-2003 Model Years, coverage applies to Original Owner and immediate family members (i.e. wife, husband, daughter, son, stepdaughter, stepson).

 

Second and/or subsequent owners have powertrain components coverage under the 5 year / 60,000 mile New Vehicle Limited Warranty. Excludes coverage for vehicles in commercial use (i.e. taxi, route delivery, delivery service, rental, etc.).

 

So the second owner, if not immediate family, still gets 5year/60K. That ain't bad....

 

 

Hey Bec!

 

Thanks for the research. I was actually thinking about going out and looking into what the actual wording was myself, and you saved me the trouble.

 

It's still worded in a somewhat confusing way, so I'm still not exactly clear what the 2004+ model year's transfer options are.

 

But... it appears that there DOES exist some kind of additional powertrain coverage for secondary owners.

 

 

-Ovaltine

[Ovaltine]

Oh... for the record though, I do agree that Hyundai SHOULD do the right thing and pony up for the repairs. Especially in cases like the one mentioned where the car only had 16k on it. Unless there were just GAWDAWFUL indications that the car had beaten, the benefit of the doubt should go to the customer.

 

And especially where a design has been proven to have been revised to eliminate a known problem, AND the company has acknowledged in TSB's that the previous design and/or parts were suspect.

 

Taking care of customers in such cases have to be chalked up to the "building credibility" and "consumer goodwill" column IMHO.

 

 

Ford's TFI module fiasco (which my Escort and Tempo BOTH suffered from) is a good example of a problem that the company knew about, hid, was sued over, and lost. Unfortunately, by the time the class action suit was settled, both cars were long gone from my stable and I wasn't contacted by anyone about the settlement. By the time I found about this on the Internet, my repair bills were unrecoverable.

 

http://www.tfisettlement.com/notice.html

 

Excerpt from above website:

 

In the Related Actions, the plaintiffs allege that Ford knew, but concealed from the public and from government officials, information that its TFI-IV module—which is an ignition-system component that Ford installed on the distributors of class vehicles—had an inordinately high propensity for failure due to overheating. The plaintiffs allege that TFI module failure is more likely to occur in conditions that cause the TFI module to become overheated, such as in hot weather and while the vehicle’s engine is under load (such as while towing or while driving up a grade) or while idling for extended periods. The plaintiffs also allege that TFI module failure frequently occurs on an intermittent basis; that is, the module will fail while hot, and then recover and continue functioning after it cools. In addition, the plaintiffs allege that if a TFI-IV module fails, the engine of the vehicle can stall suddenly and unexpectedly, even while traveling on the roadway, thereby creating an unreasonable risk to motor vehicle safety. (This was my wife's Tempo's exact situation! -Ovaltine)

 

Ford denies all of the material allegations made by the plaintiffs in the Related Actions and denies wrongdoing or liability of any kind. Ford contends that its TFI modules are as good as or better than the ignition modules produced by its competitors and it denies the existence of any defect in the class vehicles. It also disagrees with plaintiffs’ contentions about the likelihood of module failure and supposed intermittent failures and believes that any failures would most likely manifest themselves as an inability to start the vehicle. Ford also believes it complied with all applicable federal and state laws. Accordingly, neither this Notice nor the proposed settlement reflect any concession by Ford that there is a defect in the class vehicles or that Ford violated any law or the rights of Settlement Class Members.

 

The Parties have litigated the Related Actions vigorously through the Howard action for nearly six years. That case was the largest class action of its type to proceed to a jury trial, which ended in a mistrial in November 1999. The trial proceeded to a second phase, in which certain equitable claims were tried to the Court. No judgment has been entered. The remaining legal claims were to have proceeded to a second jury trial in September 2001. The claims made by the plaintiffs in the Related Actions pending outside of California would have been litigated thereafter.

 

 

-Ovaltine

Edited August 11, 2006 by Ovaltine

[range]

I guess if you are stupid enough to buy a Korean sports car, people should treat you stupidly. :bandance:

 

 

Since Hyundai and Kia always rank near the bottom of reliability you'd think they'd treat these problems more seriously.

 

Hyundai and Kia seem like cars you buy when you can't afford something better.

Edited August 11, 2006 by range

[Roadrunner]

I believe they often are.

 

Person 1: "Oooh I have a new car! I didn't buy used!"

Person 2: "Yeah but it doesn't command any new respect -- you got one of those 'cause that's all you could get"

 

There are definite exceptions to this - the people who are attracted to the 10-year/100,000 mile warranty and the people who expect a reliable car without the Camry price.

 

However, I've seen people who make $10/hour and, for status, will show off their new-off-the-lot Hyundais/Kias and say "look what I have!" Duuude, you're 25 and you make ten bucks an hour -- you can do better than that!

Edited August 12, 2006 by Roadrunner

[bec5150]

My inlaws live next to a family that has converted over to Kia/Hyundai. They have a 2003 Sorento, a 2003 Kia van (forgot the name, sorry) and their daughter has a 2004 Tiburon (automatic). The only work that I know of they have had done between the three cars is an A/C recharge on the van at 35K miles. They are quite pleased with the vehicles.

[Ovaltine]

There are definite exceptions to this - the people who are attracted to the 10-year/100,000 mile warranty and the people who expect a reliable car without the Camry price.

 

The exception list is growing. An executive director making over 6 figures where I work loves his 2 year old Sorento. He said he's having a hard time not wanting to grab another one when his lease is up. They're not exactly economy cars gas mileage-wise though, so that may push him towards something else.

 

I also consider myself an "exception". I'm a 20+ year IT veteran, who has a 10 years left on a 15 year mortgage, kids starting college in 4 years, and acreage to pay off in Northern Michigan. I've got a lot better uses for my money than spending more than I have to for a decent car that's fun to drive.

 

Your quote above describes my situation nicely:

"....people who expect a reliable car without the Camry price."

 

 

However, I've seen people who make $10/hour and, for status, will show off their new-off-the-lot Hyundais/Kias and say "look what I have!" Duuude, you're 25 and you make ten bucks an hour -- you can do better than that!

 

Trust me.... I obviously didn't buy a KIA expecting envious stares from other drivers. But you know what? In several ways I enjoy having an attractive nicely styled car that doesn't look exactly like every 5th vehicle I pass. Plenty of neighborhood people have complimented me on the looks of the car when they stroll by, and my next door neighbor who works for one of Ford's local assembly plants even said that it looks like what a sporty redesigned Focus *should* look like. And he's a card carrying UAW member folks. No B.S.

 

Again.... this isn't meant to be an ad for KIA. Just a reminder that the neighbor "duuudddde" you see driving a brand that ISN'T a Ford just may be happy with his/her choice, regardless of the social status you choose to label them with.

 

-Ovaltine

Edited August 12, 2006 by Ovaltine

[bec5150]

Before we bought the CR-V, we test drove a Sorento and I was very impressed. It was screwed together quite well, it was quiet and the parts were very high quality. The only thing that kept us out of it was the unknown quality of the product and the fuel mileage.

 

In 2004, Kia and Hyundai put a bunch of money towards quality efforts and publicly stated their target was Toyota quality levels within five years.

 

While we can argue the results of that effort, I will say that the mentality they have is to be respected.