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A wave of car thefts has been linked to viral social media videos demonstrating how to exploit security weaknesses in certain Kia and Hyundai models. The widespread circulation of these videos resulted in a significant increase in vehicle thefts across the nation.
In response, Hyundai and Kia have agreed to a settlement worth up to $9 million. This agreement, announced by a coalition of attorneys general from 36 states, requires the automakers to implement major reforms and provide restitution. The settlement aims to resolve claims that the companies failed to equip millions of their vehicles with essential anti-theft technology.
Of the total settlement, up to $4.5 million is earmarked for restitution to consumers affected by the thefts, while the remaining $4.5 million will be distributed as penalties among the participating states. This settlement reflects a collaborative effort by state officials to hold the companies accountable for their oversight.
New York Attorney General Letitia James emphasized the impact of the auto manufacturers’ decisions, stating, “Hyundai and Kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences. This settlement ensures Hyundai and Kia owners will be able to protect their cars at no cost.”
The agreement specifically addresses security flaws in vehicles produced by Hyundai and Kia between 2011 and 2022. These models were missing engine immobilizers, a crucial security feature that prevents a car from starting without the correct coded key, which is standard in the industry.
Why did Hyundai and Kia settle?
The settlement addresses vulnerabilities in Hyundai and Kia vehicles manufactured between 2011 and 2022. The vehicles lacked engine immobilizers, an industry-standard security feature that prevents a vehicle from starting without a coded key.
According to the attorneys general, ignition systems in the vehicles could be easily bypassed, allowing thieves to steal cars in minutes. Videos demonstrating the theft method circulated widely online, accelerating the trend.
As thefts spiked, communities across New York and the nation saw sharp increases in stolen vehicles, officials said.
In New York City, thefts of Hyundai and Kia vehicles doubled from 2021 to 2022. During the first four months of 2023, the city recorded 977 such thefts, up from 148 during the same period a year earlier.
In Monroe County, in upstate New York, more than 1,400 Kias and Hyundais were stolen in the first half of 2023, while in Syracuse, the brands accounted for more than half of vehicle thefts over a seven-month span.
Authorities also linked stolen Hyundai and Kia vehicles to violent crimes and fatal crashes.
What does the settlement do?
Under the settlement, Hyundai and Kia must equip all future vehicles sold in the United States with engine immobilizers. The companies also are required to offer free zinc-reinforced ignition cylinder protectors to owners and lessees of eligible vehicles through authorized dealerships, including those previously eligible only for software updates.
The automakers must continue publicizing available anti-theft measures for at least five years.
The agreement follows criticism that Hyundai and Kia were slow to respond to the crisis. While the companies launched a software update campaign in 2023 and offered physical ignition protections for some vehicles, attorneys general allege the fixes were insufficient and, in some cases, easily bypassed.
Who is eligible for part of the settlement?
In addition to penalties the companies agreed to pay dozens of states, eligible consumers whose vehicles were stolen or damaged may seek compensation.
Owners can receive up to $4,500 for a total loss or up to $2,250 for a partial loss, according to settlement terms. Claims will be paid on a rolling basis until funds are exhausted, and the deadline to file a claim is March 31, 2027.
Attorneys general from 36 states were involved in the settlement, meaning residents in those states are eligible for the payouts: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, Wisconsin, and the District of Columbia.
Consumers seeking more information about eligibility, claims or scheduling free installations are encouraged to visit the settlement website or contact their local Hyundai or Kia dealership.
