Hyundai and Kia have reached an agreement with 36 states to address years of consumer concerns that their anti-theft technology failed to meet industry standards, making their vehicles easy targets for thieves.
The details: The multistate settlement—which has been brewing for years—will provide restitution to consumers and fixes to millions of eligible vehicles nationwide, with very specific courses of action.
Equip all future Hyundai and Kia vehicles sold in the U.S. with engine-immobilizer anti-theft technology.
Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including cars that previously were only eligible for the companies’ software updates.
Provide up to $4.5 million in restitution to eligible consumers whose cars were damaged by thieves.
Pay $4.5 million to the 36 states to defray the costs of the investigation into the matter.
Eligible vehicle owners can receive up to $4,500 for a total loss or up to $2,250 for a partial loss—and have until March 31, 2027, to file a claim, as detailed on the settlement website.
What they’re saying: “Security is a key piece for families looking to buy a vehicle, but Hyundai and Kia spent years selling people cars that lacked the industry’s standard protections. Year after year, consumers have been easily victimized because of the automakers’ failure here,” said Nick Brown, attorney general for Washington, one of the 36 states included in the settlement.
Why it matters: Clear remedies, retrofit programs, and future immobilizer standards give stores something concrete to point to with frustrated owners—while also making it easier to restore confidence in new and used Hyundai and Kia inventory that may have been harder to sell or insure during the height of the theft concerns.
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Between the lines: The thefts, especially those tied to Kia vehicles, began drawing national and global attention in 2021 when a group of teenagers in Milwaukee, WI started posting videos on TikTok describing how to steal the cars—further infuriating owners.
Videos showed that the vehicles could be stolen by simply removing a plastic piece under the steering wheel and using a USB cord to turn the ignition tumbler, start the vehicle, and release the steering lock.
The posts, which took on the form of a TikTok challenge, included the hashtag “Kia Boys” and racked up more than 33 million views on the social media platform by September 2022.
Hyundai and Kia vehicle thefts surged nationwide in the summer of 2022, increasing 95% from 2021, according to the National Insurance Crime Bureau.
Bottom line: Hyundai and Kia’s settlement gives dealers a clearer playbook: proactively educate customers about fixes and claim options, push eligible vehicles through the anti-theft upgrades, and use the new immobilizer standard on future models to rebuild trust and close deals—especially with buyers who may have written these brands off during the height of the theft headlines.
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