Code P1326 hits. Power drops. Hyundai’s tripwire just fired. That limp mode isn’t a glitch; it’s meant to stop your engine from seizing or catching fire.
Two threats triggered recalls. One’s inside the Theta II engine, where leftover metal shreds the bearings until the crank locks up. The other’s in the ABS module, a fire risk even while parked. Both forced Hyundai into action: overlapping recalls, forced software, and thousands of replacement engines.
This guide clears the mess. You’ll see which years are covered, how the KSDS system works, what gets you a free long-block, and why some Santa Fes shouldn’t be parked indoors.
1. Two threats, one tangled recall history
Most Santa Fe owners have heard about the recalls. What they often miss is this: you’re not dealing with one problem, you’re dealing with two.
First is the engine defect buried in the Theta II rotating assembly. Machining debris left in the oil passages chews up the rod bearings. Eventually, the crankshaft seizes. That’s when you get stalls, lock-ups, and fires.
Second is an electrical fire risk from the ABS module. An internal short can trigger a blaze even when the SUV’s parked and shut off.
Federal watchdogs forced Hyundai’s hand
The paper trail starts in 2017 with Recall 17V-226 (Hyundai Campaign 162). That covered 2013–2014 Santa Fe Sport GDI engines, triggering crank inspections and engine swaps.
Hyundai later expanded the net with Campaigns 966/953/TXXM, which added KSDS software to older 2010–2012 Santa Fes and unlocked 15-year, 150,000-mile warranty coverage.
Meanwhile, the ABS fire risk drove Recall 23V-651 (Campaign 237), spanning 2013–2018 models and forcing Hyundai to tell owners to park outside until a new multi-fuse was installed.
Even some 2025s weren’t safe, Recall 281 ordered full engine replacements on a small batch built with under-torqued rod bolts.
Overlap makes repairs a maze
Here’s where it gets messy. Take a 2014 Santa Fe Sport. It may need a KSDS install, a crank test if P1326 sets, and a fuse fix for the ABS unit, all tied to different campaigns. Dealers juggle these at once, but owners often leave with some fixes pending. That’s why recall ID matters more than model year.
Major Santa Fe / Santa Fe Sport safety actions
Hazard family | Affected years | NHTSA / Hyundai ID | Root cause | Primary risk | Mandated remedy |
---|---|---|---|---|---|
Theta II engine mechanical | 2013–2014 Sport (2.0T / 2.4 GDI); also 2010–2012 Santa Fe, 2013–2019 Sport | 17V-226 + extended campaigns | Machining debris → bearing wear → oil loss | Seizure, stall, fire | Crank/BCT checks; replace engine if failed; KSDS req |
Warranty expansion | 2010–2012 Santa Fe; 2013–2019 Sport | Campaign 966/953/TXXM | Bearing risk in related engine families | Stall, internal failure | KSDS install + 15-yr/150k warranty if compliant |
ABS/HECU fire risk | 2013–2015, 2016–2018 Santa Fe; 2017–2018 Sport (non-SCC) | 23V-651 (Campaign 237) | Internal ABS short | Fire while parked | Replace fuse; park outside until fixed |
Rod bolt torque flaw | Select 2025–2026 Santa Fe | Recall 281 | Under-torqued rod bolts | Power loss, engine damage | Full engine replacement |
2. The silent failure hiding in Theta II engines
Oil passages in the Theta II block work like arteries. During crankshaft machining at HMMA and KMMG, metallic swarf wasn’t fully cleared.
That grit rides with the oil, scours the rod bearings, and opens up clearances until pressure drops. Once the bearing overlay’s gone, journals heat up, the crank drags, and failure begins.
If you hear a tick that turns into a knock as RPMs rise, you’re hearing it die.
It gets louder before it dies
First comes a soft tick. Then a hollow knock under load. As the crank fights internal friction, you’ll feel hesitation, power loss, and stalls at stoplights.
In the final stretch, a rod can break loose, punch through the block, and spray oil on hot surfaces. Fire risk follows fast. That’s why code P1326 and limp mode are your last warning.
Check the oil and still hear a knock at 2,000 rpm? Don’t wait; damage is already underway.
Santa Fe takes the full hit
The hardest-hit group is the 2013–2014 Santa Fe Sport with the 2.0T and 2.4 GDI. Hyundai later added KSDS coverage and long-term protection for the 2010–2012 Santa Fe 2.4 MPI and 2013–2019 Sport, since they all share the same bottom-end risk, even with different fuel systems.
If your VIN falls in those years, KSDS compliance is non-negotiable if you want engine replacement coverage.
Dealer test: crank or replace?
First up is the crankshaft rotation test. If the crank doesn’t spin under 94 lb-ft, the engine’s toast. If it passes, techs run the Bearing Clearance Test (BCT). A fail triggers a full replacement. A pass gets you software and a wait-and-see slip.
3. KSDS, Hyundai’s early warning system: it flags, not fixes
It listens for knock, then locks you down
KSDS isn’t guessing. It’s tuned to catch the exact knock pattern worn bearings create. Once it hears that, it lights the dash, logs P1326, and throws the engine into limp mode before the crank welds itself to a journal.
Hear the chime, feel the power drop? That’s it, working.
Stops failure, doesn’t fix it
KSDS won’t raise oil pressure, rebuild bearings, or flush debris. It’s a warning system, like a smoke alarm, not a fire extinguisher. Ignore it, and you’re risking a seized crank, not just a slow commute.
Clear the code and keep driving? You’re burning daylight and metal.
Your warranty rides on installing it
Hyundai made KSDS mandatory. No install, no 15-year/150,000-mile engine coverage. That includes most 2010–2019 Santa Fe and Santa Fe Sport models with Theta II, Nu, or Gamma engines. Skip the update, and Hyundai can deny help under “Exceptional Neglect.”
No KSDS on the repair order? No engine. Period.
It flags the problem, not the fix
Even if KSDS triggers limp mode, that alone won’t get you a new engine. Dealers still need data. If the crank fails the torque test or the BCT shows bearing damage, you qualify. If not, you leave with updated software and a documented “wait and watch.”
4. What actually gets you a new engine
First test: crank torque tells the truth
The teardown starts with the crank rotation test. If the crank won’t turn under about 94 lb-ft, it’s considered seized. That’s an instant green light for a long-block, once techs snap photos or shoot a quick video and file for Prior Approval.
If the crank turns freely? You’re not done yet.
Second test: bearing clearance seals it
Next comes the Bearing Clearance Test (BCT), the shop’s pass/fail gate. A NO PASS or No BCT result means excessive play or test failure. Either way, you get a new engine. A PASS means you don’t. You get new ECM software, the file gets closed, and you’re back on the road, knock or not.
The numbers make the call, not noise in the lot.
P1326 isn’t a guaranteed engine swap
KSDS confirms abnormal knock. But without torque and BCT results, Hyundai won’t approve a replacement. That’s why some limp-mode Santa Fes leave with just a software update and no crate motor.
Don’t skip the paperwork trail
Dealers must submit BCT screenshots, torque specs, and any photos or video showing mechanical failure. Hyundai’s Prior Approval team checks those against the recall rules before shipping a long-block. If anything’s missing, the claim stalls, and so do you.
Want to cover yourself? Ask for those screenshots on your repair order.
What a BCT “PASS” really means
A pass doesn’t mean the engine’s healthy forever. Some knocks fade when cold, then come roaring back uphill or under load. That’s why you need clean oil change records, service receipts, and VIN-tied KSDS events on file. If it fails later, you’ve got ammo.
5. The fire risk that doesn’t need the key in the ignition
Why these SUVs can ignite hours after shutdown
The danger here isn’t a hot engine; it’s the ABS module. Inside the HECU, an internal short can spike current through the circuitry until it overheats and arcs.
It doesn’t need the ignition on. Several owners reported smoke or flames long after parking, which is why NHTSA labeled it a critical fire risk.
NHTSA’s blunt directive: park outside
Recall 23V-651 (Campaign 237) came with no soft language, park outside, away from anything flammable, until it’s fixed. The repair? A redesigned multi-fuse that cuts current if a short develops. It takes less than an hour, but ignoring it turns your SUV into a garage hazard.
Fire risk overlap: ABS vs engine
Many VINs are hit by both recalls. A 2016 Santa Fe might need KSDS software for engine protection and also an ABS fuse swap for fire risk. Owners often confuse the two because both mention “fire”, but the sources are different. One starts with oil-fed bearing failure, the other with electrical shorts while parked.
Why skipping the fuse swap is a real gamble
Some treat this like a recall they can push off. Don’t. Until that fuse is installed, the SUV can catch fire in the driveway, even after sitting cold. Ask for a copy of the RO showing Campaign 237 was completed. If it’s not stamped, park it outside.
6. The warranty safety net built by lawsuits
Class-action deal turned into long-term coverage
The Theta Engine Settlement didn’t just cut checks; it gave eligible Santa Fe and Santa Fe Sport models a 15-year/150,000-mile powertrain warranty for bearing failures.
But that safety net only works if you’ve got proof: KSDS installed, dealer test results logged, and receipts to show maintenance. That’s what keeps approvals based on hard data, not just complaints.
Want coverage? Play by their rules or you’re out.
The rules, Hyundai won’t bend
No KSDS, no coverage. Miss oil changes or lose the receipts? They can flag it as “Exceptional Neglect” and shut the door on engine replacement.
Reimbursements for old rentals or tows expired in 2021, but coverage for real engine failures is still active, as long as you pass the crank torque and BCT tests.
You don’t need a story. You need documentation.
Why this matters when it’s time to sell
Buyers check the VIN. Dealers check for updates. A Santa Fe with KSDS installed and a full record stack holds value because the warranty transfers. Hyundai dealers often update trade-ins before resale for that reason. Skip the software and the paper trail? That resale value walks.
Think resale now, because the next owner will.
Extended warranty and KSDS conditions
Benefit | Terms | Non-negotiables and notes |
---|---|---|
Engine warranty extension | 15 years or 150,000 miles from in-service date | KSDS must be installed. Maintenance must be documented. |
KSDS software | Free dealer install | Required for extended coverage on eligible VINs. |
Loaner or rental support | Reimbursements for old claims ended 2021 | Current covered failures typically include dealer loaners. |
7. Which Santa Fe models still qualify for help?
The engine years that carry real risk
The recall bulls-eye sits squarely on 2013–2014 Santa Fe Sport models with the 2.0T or 2.4 GDI. That’s where Recall 17V-226 hit hardest. But Hyundai didn’t stop there; they extended coverage to 2010–2012 Santa Fe (2.4 MPI) and 2013–2019 Santa Fe Sport, all tied together by the same bottom-end failure risk.
If your VIN falls here, KSDS isn’t optional; it’s your coverage trigger.
The fire recall that targets parked SUVs
Recall 23V-651 covers ABS and HECU fire risk. That includes 2013–2015 and 2016–2018 Santa Fe, and 2017–2018 Santa Fe Sport without Smart Cruise Control. The fix? A redesigned multi-fuse that chokes off current before a short turns into flames. Until that fuse is installed, park outside.
Fuse done and on paper? Then you can sleep easier.
The 2025 curveball no one expected
A small batch of 2025–2026 Santa Fes left the factory with under-torqued rod bolts, a defect serious enough to trigger a full engine replacement, no tests or software updates. It’s rare, but real.
If your VIN is flagged, the long-block is already coming.
Quick-fit recall and coverage grid
Model | Years | Issue type | Action required |
---|---|---|---|
Santa Fe | 2010–2012 | Theta II 2.4 MPI | Install KSDS; unlock extended engine coverage |
Santa Fe Sport | 2013–2014 | Theta II 2.0T/2.4 | Safety recall, crank/BCT testing; KSDS required |
Santa Fe Sport | 2015–2019 | Theta/Nu/Gamma | KSDS install; warranty eligibility if compliant |
Santa Fe | 2013–2015, 2016–2018 | ABS/HECU fire risk | Install multi-fuse; park outside until completed |
Santa Fe Sport | 2017–2018 (no SCC) | ABS/HECU fire risk | Install multi-fuse; park outside until completed |
Santa Fe | 2025–2026 (select VINs) | Torque defect | Full engine replacement (Recall 281) |
8. Your VIN-first repair plan
Start with proper lookup, and save everything
Pull your VIN at NHTSA.gov and Hyundai’s recall portal. List each open item by campaign ID, date, and system (engine or ABS). Save screenshots and PDFs that clearly show the VIN and mileage. NHTSA lists safety recalls only. Hyundai adds service campaigns and KSDS status.
Once you’ve got the files, call your dealer. You’ve already done half the work.
KSDS is your gateway, book it even if quiet
If eligible, schedule the KSDS update (Campaign 966 or 953) immediately, even if the engine sounds fine. It’s required to unlock warranty protection and helps catch bearing wear early. Ask the advisor to write “KSDS installed” on the RO and hand you the updated ECM printout.
No record of KSDS = no engine when failure hits.
P1326 means tow, not drive
If you get P1326, stop. Tow it in. Don’t clear the code or “just drive it in.” At the dealer, say: “P1326, KSDS activated. Please perform crank torque test and BCT per campaign.”
If crank torque exceeds 94 lb-ft, the engine qualifies for replacement. If it turns freely, BCT makes the call. Ask for screenshots of both results on your RO.
That file matters more than any phone call.
Build the paper trail now, not later
Save every oil-change receipt, clearly showing date, mileage, and oil grade. Keep old tow bills, prior dealer notes, KSDS records, and any photos showing crank seizure or BCT results. This is what moves Hyundai’s Prior Approval team, not your story.
No paper, no protection. That simple.
Close the fuse fix, or risk your garage
If your VIN shows Recall 23V-651, the fire risk is still live. Until that multi-fuse is installed, the SUV should sleep outside. After the repair, get an RO that clearly states: “Campaign 237 performed.”
That’s your only real fire insurance.
Don’t wait on slow approvals; escalate
If parts are delayed or approvals stall, call Hyundai Consumer Affairs. Use your RO and case number. Be direct: “This is [Campaign Code]. BCT failed / torque exceeded threshold. Prior Approval requested. Here’s the advisor name and time.”
You’re not asking for a favor. You’re asking them to follow their process.
9. What the current fix covers, and where it still falls short
The good news under Hyundai’s safety net
Hyundai’s recall matrix does have teeth. The KSDS system helps catch bearing failure before it snowballs into a full seizure. The 15-year / 150,000-mile engine warranty gives owners far longer protection than a typical powertrain plan.
And the multi-fuse fix for the ABS short eliminates the nightmare of a truck going up in flames while parked. For many owners, these steps turn a potentially catastrophic defect into a manageable risk.
Where the weak spots still show
But KSDS doesn’t fix the bearings; it just flags them. You can still get a BCT PASS even after P1326 hits and limp mode kicks in. That means you drive away with updated software, but the same failing bottom end.
And in the meantime, the knock can worsen. It’s not just the crank that suffers; catalytic converters, coils, and other parts may take collateral damage. Those often fall outside warranty coverage, leaving owners stuck with the bill.
The gap between detection and replacement is the most common sore spot in Hyundai’s service network.
What 2025 models quietly revealed
Only a handful of 2025–2026 Santa Fe builds were recalled for under-torqued rod bolts, but the defect hit where it hurts: the rotating assembly.
Less than ten units got flagged, yet it showed Hyundai still isn’t immune to bottom-end mistakes. It’s not a second coming of the Theta II crisis, but it rhymes, because it always comes back to crank and rod quality control.
If KSDS keeps the engine from locking and the fuse keeps the ABS from lighting up your garage, the system’s doing its job. But one bad BCT test or a delayed approval still proves the underlying risk hasn’t disappeared.
Win both fights or lose the warranty
If you’ve got a Hyundai Santa Fe or Santa Fe Sport from the covered years, you’re in two separate fights, and you have to win both.
The engine fight starts with getting KSDS installed, logging every oil-change receipt, and making sure any P1326 event gets documented with crank torque and BCT results. That’s your one shot at the 15-year / 150,000-mile coverage and a free long block when the numbers line up.
The fire fight is simpler. If your VIN falls under Recall 23V-651, the multi-fuse swap isn’t optional. Until that fuse is installed, the truck sleeps outside.
No, the system’s not perfect. KSDS won’t reverse bearing wear, and a BCT PASS can leave you in limp mode with no fix in sight. But if you follow the rules tight, you flip a ticking time bomb into a defect with built-in legal coverage, one that outlasts most loans.
This isn’t guesswork. The VIN check is your opener, the repair order is your proof, and the paper trail is your insurance. Nail those three, and the hardest part’s already done.
Sources & References
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Rami Hasan is the founder of CherishYourCar.com, where he combines his web publishing experience with a passion for the automotive world. He’s committed to creating clear, practical guides that help drivers take better care of their vehicles and get more out of every mile.