Theta II engine fires, tow hitch recall 23V-181, DCT power loss. 2019-2023 Santa Fe owners may qualify for a California buyback. Free review.
When Hyundai redesigned the Santa Fe for 2019 — a clean-sheet fourth generation riding on the TM platform — buyers got a genuinely handsome three-row family SUV. What many did not know was that under the hood sat a Theta II engine with a well-documented history of catastrophic bearing failure, and that Hyundai had already been the subject of federal consent orders for concealing and delaying recalls of that very engine. NHTSA's own investigation confirmed that Hyundai conducted untimely recalls of more than 1.6 million Theta II-equipped vehicles and inaccurately reported information to regulators. The 2019 Santa Fe was squarely in that group. The defect follows a brutal sequence: machining debris or surface variances inside the engine cause the connecting rod bearings to wear prematurely. A worn bearing produces a loud knocking noise and triggers DTC P1326. If the car is not repaired in time — or if the first repair fails — a connecting rod can break through the engine block, spraying oil onto hot exhaust components and starting a fire. Engines have seized with no prior warning. Fires have occurred in driveways, on highways, and while the vehicle was sitting still. Hyundai's response was to deploy a Knock Sensor Detection System (KSDS) software update under Service Campaigns T3G and T6G, and to extend the engine warranty to 15 years or 150,000 miles under Campaign TXXM — an acknowledgment that the underlying hardware defect could not be cured with a software patch. Then came a second fire risk, unrelated to the engine entirely. A 2023 safety recall (NHTSA 23V-181) revealed that the optional OEM accessory trailer tow hitch harness — sold by Hyundai dealers and installed on 2019 through 2023 Santa Fes — contained a printed circuit board that lets water into the connector. When moisture reaches the PCB it causes an electrical short. Three confirmed US fires preceded the recall filing. Hyundai advised owners who had the tow hitch harness installed to park outside and away from structures — effectively a safety park advisory — while awaiting a dealer repair. California's Song-Beverly Consumer Warranty Act was designed for situations like this. If your Santa Fe has been back to the dealer for engine noise, a P1326 code, or fire damage — or if the tow hitch recall was not remedied promptly — your repair history may already place you within reach of a buyback or vehicle replacement.
The issues owners report most, ranked by severity — each one verified against a cited NHTSA source.
Engine makes loud knocking or rod-knock noise; check-engine light illuminates with DTC P1326; engine suddenly seizes or stalls; smoke or fire from engine compartment; oil pressure warning light comes on
Smoke or fire near rear of vehicle while parked or driving; burning smell from rear cargo area; fire originating at trailer hitch area; fire with no prior warning when vehicle is off and parked
Smell of fuel in engine compartment; fuel stains or dripping near fuel rail; check-engine light; in severe cases, smoke or fire from engine bay
Vehicle suddenly loses all forward or reverse drive while in motion; transmission enters limp-home or fail-safe mode that may not provide any drive power; warning lights illuminate; vehicle cannot accelerate from stop
Vehicle stolen or theft attempted; ignition column easily breached without a key; vehicle started and driven away using a USB device; repeated vandalism or theft attempts
A settled Margarian Law case on this exact model, published with the actual settlement math.
Open any defect for the symptoms and why it matters for a California lemon-law claim. Each is tied to a cited NHTSA source.
Engine makes loud knocking or rod-knock noise; check-engine light illuminates with DTC P1326; engine suddenly seizes or stalls; smoke or fire from engine compartment; oil pressure warning light comes on
Engine seizure and fire are catastrophic, safety-affecting failures. The 2019 TM Santa Fe is confirmed covered under Campaign T3G (bearing inspection/replacement) and TXXM warranty extension for Theta II 2.0T and 2.4 GDI. Multiple repair attempts required before engine replacement qualifies as substantial impairment for lemon-law purposes.
Knock Sensor Detection System (KSDS) software update installed under Service Campaign T3G / TSB 20-01-004H to detect bearing wear early; engine replaced under Campaign T3G or TXXM warranty extension (15 yr / 150,000 mi) at no cost if bearing damage confirmed
Smoke or fire near rear of vehicle while parked or driving; burning smell from rear cargo area; fire originating at trailer hitch area; fire with no prior warning when vehicle is off and parked
Fire risk while parked is a safety defect. 584,784 units affected across 2019-2023 TM range. Park-outside advisory from Hyundai/NHTSA establishes that the vehicle is unsafe to garage — directly supporting substantial impairment claim. Verify whether owner purchased OEM tow hitch accessory.
Dealer inspects for Genuine Hyundai Accessory tow hitch and 4-PIN harness; if present, installs wire extension harness repair or full harness replacement plus an updated 15A junction-box fuse at no cost. Park outside advisory issued pending repair.
Smell of fuel in engine compartment; fuel stains or dripping near fuel rail; check-engine light; in severe cases, smoke or fire from engine bay
Fire risk from a fuel leak is a safety-affecting defect present at delivery. If dealer repair fails to resolve the leak, or if a second fuel-related visit occurs, a strong lemon-law basis exists. Confirm 2.5T engine and relevant build dates from VIN.
Dealer inspects and retightens, or replaces, the high-pressure fuel pipe at no cost. Owner notification mailed September 2021.
Vehicle suddenly loses all forward or reverse drive while in motion; transmission enters limp-home or fail-safe mode that may not provide any drive power; warning lights illuminate; vehicle cannot accelerate from stop
Sudden complete loss of drive power in traffic is an imminent crash hazard and satisfies the safety-defect threshold. 2021-2022 TM models squarely within scope. If the TCU update does not resolve the issue and the loss-of-drive event recurs, repeated repair attempts for the same defect support a lemon-law claim.
Dealer performs TCU (Transmission Control Unit) software update to revise fail-safe logic; if DTC P1C2D03 is present, the transmission is replaced. No cost to owner.
Vehicle stolen or theft attempted; ignition column easily breached without a key; vehicle started and driven away using a USB device; repeated vandalism or theft attempts
NHTSA confirmed at least 14 crashes and 8 fatalities nationally linked to this exploit. Though NHTSA declined to issue a mandatory safety recall (treating it as a service campaign), California's lemon law may support a claim where the theft defect substantially impairs use or value and repeated dealership visits for related damage occur. The software fix (Campaign 993) has not always been effective; subsequent thefts after the update have been reported.
Hyundai Campaign 993: free IBU/BCM software upgrade extends alarm from 30 sec to 1 min and adds an ignition-kill logic requiring key-fob lock to enable starting. Anti-theft window decals installed. Campaign 9A5 adds an ignition-cylinder reinforcement protector. Steering wheel locks provided under Campaign P32.
open
The printed circuit board (PCB) in the accessory trailer tow hitch harness module may be susceptible to water inflow through the wiring harness connector, causing an electrical short circuit that can result in a fire while the vehicle is parked or being driven.
closed
The 8-speed wet DCT high-pressure electric oil pump may malfunction. When this fault occurs while driving, the fail-safe limited-mobility mode may be impaired, resulting in a complete loss of drive power rather than a limited-mobility driving state.
closed
The fuel pipe connecting the high-pressure fuel pump to the fuel rail may have been insufficiently tightened during assembly or produced outside of concentricity specification, allowing fuel to leak in the engine compartment and increasing the risk of a vehicle fire.
Every item below comes from this vehicle's documented defects. The more you recognize, the more a free case review is worth your time.
California's Song-Beverly Consumer Warranty Act — commonly called the lemon law — entitles you to a buyback, replacement, or cash settlement when a manufacturer cannot fix a defect after a reasonable number of repair attempts within the warranty period. For safety defects — including engine fire risk and sudden loss of drive power — California law presumes two repair attempts may be sufficient to trigger your rights. For other substantial defects, the threshold is generally four repair attempts or 30 cumulative days out of service (not necessarily in a row). The Santa Fe TM presents several scenarios that may qualify: repeated dealer visits for engine knock or P1326 before a successful engine replacement; an engine replacement that fails to resolve the knock; an open tow hitch recall (23V-181) where the dealer has no parts and the vehicle has been advised to stay out of a garage indefinitely; or transmission loss-of-drive events that recur after the TCU software update. If you prevail, California law requires Hyundai to pay your attorney fees — so many Song-Beverly cases cost the owner nothing out of pocket. The above is general information only and is not legal advice; whether your vehicle qualifies depends on your specific repair history, dates, and warranty coverage.
“Could not duplicate” doesn't mean the defect isn't real. Here's exactly what to do to protect a potential California lemon-law claim.
Document the moment it happens. Photos, video, and screenshots of any warning lights — with the date and the mileage.
Get a repair order every visit — even “found nothing.” That paperwork is the foundation of a claim.
Check your VIN at nhtsa.gov/recalls. Note any recall that has no available remedy yet.
Track your out-of-service days. California law counts the cumulative days your vehicle spends in the shop.
Keep loaner & rental records. Alternate-transport paperwork during long repairs matters.
Save everything in one place. Symptoms, dates, repair orders, and every repeat visit — the intermittent ones especially.
Dealers often write 'unable to duplicate' (UTD) or 'no trouble found' (NTF) — particularly for intermittent engine knock, warning lights that self-clear, and fire smells that are not present at the time of inspection. Here is how to protect yourself: 1. Document the symptom immediately. Before you drive to the dealer, write down the exact warning light or message, the mileage, the date, the time of day, recent driving conditions, and whether you had recently towed. Photograph any warning on the instrument cluster. 2. Demand a copy of all Diagnostic Trouble Codes — stored and historical — before they are cleared. DTC P1326 is the key marker for Theta II bearing wear; its presence in the freeze-frame data confirms the engine has already knocked even if it sounds normal during the dealer visit. 3. Ask whether Service Campaigns T3G, T6G, and TXXM have been applied to your VIN. If your 2019 Santa Fe has a Theta II engine and the KSDS update has not been installed, the dealer has an open service obligation. 4. For the tow hitch issue: confirm in writing whether your vehicle is equipped with the Genuine Hyundai Accessory 4-pin tow hitch harness. NHTSA recall 23V-181 applies only to vehicles fitted with that specific OEM accessory harness. Ask the dealer to inspect the rear harness connector and document the finding on the repair order. 5. Keep every repair order, including UTD visits. Under California law, a UTD visit still counts as a repair attempt. A pattern of UTD visits for the same symptom is itself evidence that the defect is real and recurring. 6. If you experience a fire or engine seizure, preserve the vehicle — do not allow the dealer to begin repair work without first documenting the condition with photographs and requesting a written pre-repair inspection report.
NHTSA's own consent orders documented that Hyundai knew about Theta II bearing failures and conducted untimely recalls — meaning owners drove defective vehicles longer than they should have. The company's response — a knock-sensor software patch and a 15-year warranty extension — is an acknowledgment that the engine hardware problem is real and persistent. Add a separate, unrelated fire risk from an OEM accessory harness that turns rainwater into an ignition source, and the 2019-2023 Santa Fe TM has a defect profile that California lemon law was built to address. If your Santa Fe has been to the dealer more than once for engine noise, a tow hitch fire repair, or a transmission failure, collecting your repair orders and having a lemon law attorney review them costs nothing and could result in a full refund.
— The Margarian Law team
Has your 2019-2023 Santa Fe been back to the dealer for engine knocking, a P1326 code, an engine replacement, or tow hitch fire concerns? Whether Hyundai has already replaced your engine or the recall repair is still pending, your service records may tell a story that qualifies for a California buyback. The consultation is free — find out where you stand.
The 2019 Santa Fe's 2.0L Turbo and 2.4L GDI engines use the Theta II design, which has a known manufacturing defect: surface variances and machining debris inside the engine cause the connecting rod bearings to wear down prematurely. As the bearings fail, the engine produces a loud knocking or rod-knock sound and typically triggers diagnostic trouble code P1326. If the bearing wear is not caught in time, a connecting rod can puncture the engine block, allowing oil to contact hot exhaust surfaces and ignite a fire. Hyundai addressed this through Service Campaign T3G, which installs a Knock Sensor Detection System (KSDS) software update to detect early bearing wear and triggers a bearing inspection and, if necessary, engine replacement at no charge. Campaign TXXM extends the engine warranty to 15 years or 150,000 miles for affected vehicles. NHTSA consent orders issued in 2020 confirmed Hyundai conducted untimely recalls of more than 1.6 million Theta II vehicles.
It depends on whether your vehicle is equipped with the Genuine Hyundai Accessory trailer tow hitch and 4-pin wiring harness. If it is, your vehicle is covered by NHTSA recall 23V-181 (Hyundai Recall 244), which was filed in March 2023 and remains open as of June 2026. The defect: water enters the PCB inside the tow hitch harness module through the 4-pin connector, causing an electrical short that can ignite a fire while the car is parked or being driven. Three US fires were confirmed before the recall was filed. Hyundai advised owners to park outside and away from structures until the repair — a wire extension harness kit plus an updated 15A fuse — is completed by the dealer at no charge. Not every 2019-2023 Santa Fe has the tow hitch accessory; you can verify your specific equipment and recall status by entering your VIN at nhtsa.gov.
Not automatically, but it is a serious warning that must be investigated immediately. DTC P1326 is the key alert generated by the Knock Sensor Detection System (KSDS) software Hyundai installed under Service Campaign T3G. When P1326 appears, it means the KSDS has detected engine knock consistent with connecting rod bearing wear. Hyundai's procedure requires the dealer to rotate the crankshaft and perform a physical bearing inspection. Depending on the inspection result, the outcome is either clearance (bearings are within spec and the car is returned to service), engine bearing replacement, or full engine replacement. All three outcomes are covered at no charge under Campaign T3G if your vehicle qualifies. The engine warranty extension under Campaign TXXM provides 15 years or 150,000 miles of coverage for bearing-related failures. If your dealer has dismissed a P1326 code without performing the full inspection procedure, or if the code has returned after a prior service visit, document that and contact a lemon law attorney.
It may, depending on your repair history. California's Song-Beverly Consumer Warranty Act presumes a vehicle is a lemon if the manufacturer has made two or more repair attempts for a safety-related defect (fire risk, sudden engine seizure, or complete loss of drive power all qualify), or four or more repair attempts for any other substantial defect, or if the vehicle has been out of service for 30 or more cumulative days during the warranty period. For the Santa Fe TM, qualifying scenarios include: repeated dealer visits for engine knock or P1326 before a successful repair; an engine replacement that did not resolve the defect; multiple visits for the tow hitch recall with no available remedy; or a DCT transmission failure that recurred after the software update. Days spent waiting for backordered parts count toward the 30-day threshold. If you prevail, California requires Hyundai to pay your attorney fees. Every case turns on specific dates and repair records, so gathering your paperwork is the most important first step.
A 'cannot duplicate' or 'no trouble found' outcome does not mean your concern is invalid, and under California lemon law that visit still counts as a repair attempt. Here is what to do: First, before the visit ends, ask for a printout of all stored and historical Diagnostic Trouble Codes — particularly P1326. Even if the knock is not audible during the inspection, P1326 in freeze-frame data confirms the engine has already triggered the KSDS knock threshold. Second, ask the service writer to document in writing that they inspected for Service Campaign T3G and note whether the KSDS software update has been applied to your VIN. Third, keep the repair order. If this pattern — you report knock, dealer finds nothing, knock returns — repeats even twice, you may already be at the threshold for a California lemon law presumption on a safety defect. A lemon law attorney can review your repair orders at no charge to you and advise whether you have a viable claim.
Yes. If your 2021 or 2022 Santa Fe has the 8-speed wet dual-clutch transmission (DCT), it is covered by NHTSA recall 22V-746 (Hyundai Recall 236). The defect: the DCT's high-pressure electric oil pump can malfunction, and when it does, the transmission's fail-safe logic may fail to engage a limited-mobility mode — instead leaving the vehicle with no forward or reverse drive at all. 229 confirmed incidents were on record when the recall was filed in October 2022. The dealer remedy is a TCU software update; if DTC P1C2D03 is stored, the transmission itself is replaced at no charge. If you experienced a sudden loss of drive power and the dealer performed a software update that did not prevent the event from happening again, that second occurrence is strong evidence for a lemon law claim based on a safety-affecting defect.
Skip to content
