Code P1326 engine loose power, use to much oil, only run to 2000 rpm

While driving down a major road at 45 mph the engine stalled and left my family stranded. We had it towed to the nearest Hyundai dealership who informed us that bad rod bearings caused the stall. They informed us that the engine is destroyed and recommended a new engine be installed. The car only has 65,459 miles!

Hyundai offered to cover 50% of the new engine replacement valued at $22,000 leaving us to pay $11,000. That is almost the entire value of the car! This is completely unacceptable!