Key Takeaways
- Hyundai and Kia will overhaul security features in millions of vehicles as part of a multistate settlement accusing the companies of failing to install industry-standard anti-theft technology.
- The settlement requires the automakers to provide free zinc-reinforced ignition cylinder protectors to current eligible owners and add engine immobilizers to all future U.S. vehicles.
- Nearly 4 million Hyundai vehicles and 3.1 million Kia vehicles in the U.S. will be eligible for the upgrade, with installation costs potentially exceeding $500 million.
- The lack of immobilizers in Hyundai and Kia vehicles contributed to a nationwide spike in auto thefts, with thieves devising a "quick and simple" way to start the cars without a key.
Introduction to the Settlement
Hyundai and Kia have agreed to a multistate settlement that requires them to overhaul security features in millions of vehicles. The settlement, which was announced by Attorney General Matthew Platkin, accuses the companies of deliberately failing to include industry-standard anti-theft technology in their vehicles. This lack of technology contributed to a nationwide spike in auto thefts, with thieves devising a "quick and simple" way to start the cars without a key. The settlement is a significant step in addressing the issue of auto thefts and holding carmakers accountable for their failure to take appropriate action to prevent such crimes.
Details of the Settlement
Under the terms of the settlement, Hyundai and Kia must provide free zinc-reinforced ignition cylinder protectors to current eligible owners. Additionally, the companies must add engine immobilizers to all future U.S. vehicles. Engine immobilizers are devices that prevent a vehicle from starting without a smart key, and their absence in Hyundai and Kia vehicles made it easy for thieves to steal the cars. The settlement also requires the companies to pay up to $9 million in restitution to consumers and participating states. The installation costs for the upgrade are potentially significant, with estimates suggesting that they could exceed $500 million.
Impact of the Settlement
The settlement is expected to have a significant impact on the security of Hyundai and Kia vehicles. Nearly 4 million Hyundai vehicles and 3.1 million Kia vehicles in the U.S. will be eligible for the upgrade, making it one of the largest recalls in recent history. The settlement is also a major victory for consumers, who will benefit from the improved security features and the knowledge that the companies are taking steps to address the issue of auto thefts. Furthermore, the settlement sends a strong message to carmakers that they will be held accountable for their failure to prioritize vehicle security.
Response from Hyundai and Kia
A spokesperson for Kia told FOX Business that the company remains "fully committed to upholding vehicle security." The spokesperson noted that the company has taken several steps to address the issue of auto thefts, including working to find new and effective ways to make their vehicles more difficult for criminals to steal. Hyundai, on the other hand, did not immediately respond to FOX Business’ request for comment. However, it is likely that the company will also take steps to address the issue and improve the security of their vehicles.
Broader Implications
The settlement has broader implications for the automotive industry as a whole. It highlights the importance of prioritizing vehicle security and the need for carmakers to take proactive steps to prevent auto thefts. The settlement also underscores the role of government agencies in holding carmakers accountable for their actions. In this case, the multistate settlement was led by several states, including Connecticut, Minnesota, and New Jersey, and demonstrates the effectiveness of collaborative efforts in addressing consumer protection issues.
Conclusion
In conclusion, the multistate settlement between Hyundai, Kia, and several states is a significant development in the automotive industry. The settlement requires the companies to overhaul security features in millions of vehicles and provides compensation to affected consumers. It also highlights the importance of prioritizing vehicle security and the need for carmakers to take proactive steps to prevent auto thefts. As the automotive industry continues to evolve, it is likely that we will see more emphasis on vehicle security and the development of new technologies to prevent auto thefts.
