Key Takeaways
- Hyundai and Kia will offer free repairs to millions of models due to a lack of proper anti-theft technology, making them vulnerable to thefts.
- The repair will include the installation of an engine immobilizer, which will prevent thieves from hotwiring the vehicles.
- The settlement will cost the companies up to $500 million and will also require them to pay up to $4.5 million in restitution to victims of theft.
- The eligible vehicles date back to 2011 and as recently as 2022, with approximately 9 million vehicles sold nationwide.
- The settlement was reached by 35 states, including California, New Jersey, New York, and Pennsylvania.
Introduction to the Settlement
The recent settlement announced by Minnesota’s attorney general, Keith Ellison, marks a significant step towards addressing the issue of car thefts affecting millions of Hyundai and Kia models. The settlement requires the automakers to offer free repairs to eligible vehicles, which will include the installation of an engine immobilizer, a crucial piece of technology that prevents thieves from hotwiring the vehicles. This move comes after a surge in thefts of Hyundai and Kia vehicles, which were found to be vulnerable due to the lack of proper anti-theft technology.
The Rise in Car Thefts
The thefts of Hyundai and Kia vehicles soared in 2021, particularly after videos were posted on social media platforms such as TikTok, demonstrating how to steal a car using just a screwdriver and a USB cable. This led to a significant increase in car thefts, with Minneapolis reporting an 836% increase in Hyundai and Kia thefts from 2021 to 2022. The lack of engine immobilizers in these vehicles made them an easy target for thieves, resulting in a wave of car thefts, crimes, and crashes that injured and even killed people, including teenagers.
The Investigation and Settlement
In early 2023, Attorney General Ellison announced an investigation into the automakers, citing the lack of engine immobilizers in their vehicles sold in the US, despite being installed in cars sold in Mexico and Canada. The investigation led to a settlement between 35 states, including California, New Jersey, New York, and Pennsylvania, which requires Hyundai and Kia to offer free repairs to eligible vehicles. The settlement also mandates that the companies pay up to $4.5 million in restitution to victims of theft and outfit all future vehicles sold in the US with engine immobilizers.
The Repair and Restitution Process
Under the settlement, Hyundai and Kia will install a zinc sleeve to prevent thieves from cracking open a vehicle’s ignition cylinder and starting the car. Eligible customers will have one year from the date of the companies’ notice to get the repair at an authorized dealership, with the repairs expected to be available from early 2026 through early 2027. The companies will also provide restitution to victims of theft, including those who have suffered damages or losses due to the theft of their vehicles.
Response from the Automakers
In separate statements, Hyundai and Kia expressed their commitment to addressing the issue of car thefts and upholding vehicle security. Kia stated that it is "eager to continue working with law enforcement officers and officials at federal, state, and local levels to combat criminal car theft, and the role social media has played in encouraging it." Hyundai also emphasized its commitment to supporting its customers and ensuring peace of mind, stating that it "will continue to take meaningful action to support our customers and ensure peace of mind."
Conclusion and Future Implications
The settlement marks a significant step towards addressing the issue of car thefts affecting Hyundai and Kia models. The installation of engine immobilizers and the provision of restitution to victims of theft demonstrate the companies’ commitment to prioritizing vehicle security and customer safety. As the repairs become available, eligible customers can expect to have their vehicles secured against theft, providing them with peace of mind and protection against potential losses. The settlement also serves as a reminder of the importance of prioritizing vehicle security and the need for automakers to take proactive measures to prevent car thefts.
