Hyundai and Kia on the hook for $500 million-plus, multi-million anti-theft deal



Car manufacturers Hyundai and Come on must provide free repairs to millions of models under a settlement announced Tuesday by Minnesota’s attorney general, who led an effort by several states that argued the vehicles were not equipped with the proper anti-theft technology, leaving them vulnerable to thefts.

Under the national settlement, the companies will offer free repairs to all eligible vehicles worth up to $500 million, said Minnesota Attorney General Keith Ellison. Hyundai and Kia must also fit all future vehicles sold in the US with a key piece of technology called an engine immobilizer and pay up to $4.5 million in restitution to people whose vehicles were damaged by thieves.

The settlement reached 35 states, including California, New Jersey, New York and Pennsylvania. The vehicles eligible for the repair date back to 2011 and as recently as 2022. About 9 million eligible vehicles have been sold nationwide.

Thefts of Hyundai and Kia vehicles surged in part because starting in 2021, videos posted on TikTok and other social media show how someone steals a car just use a screwdriver and a USB cable. Minneapolis reported an 836% increase in Hyundai and Kia thefts from 2021 to 2022. Ellison announced an investigation into the automakers in early 2023.

Ellison said the two companies installed engine immobilizers in cars sold in Mexico and Canada, but not widely in the US, which led to car thefts, crimes and crashes with injuries and more. people were killed, including teenagers.

“This crisis that we’re talking about today started in a boardroom, traveled on the internet and ended with terrible consequences when someone stole cars,” Ellison said at a news conference.

He was joined by Twin Cities officers, a woman whose mother died when a stolen Kia crashed into her parents’ car and a man whose car had been stolen nine times — as recently as Monday night, and including seven times after a previous software fix.

Under the settlement, Hyundai and Kia will install a zinc sleeve to prevent thieves from cracking the vehicle’s ignition cylinder and starting the vehicle.

Eligible customers have one year from the date of the companies’ notice to get the repair done at an authorized dealership. The renovations are expected to be available from early 2026 to early 2027.

In separate statements, the automakers said the agreement is one of several anti-theft efforts they are making to help customers.

“Kia looks forward to continuing to work with law enforcement officials and officials at the federal, state, and local levels to prevent criminal auto theft, and the role social media plays in encouraging it, and we remain fully committed to supporting vehicle security,” the company said.

Hyundai said, “We will continue to take meaningful action to support our customers and ensure peace of mind.”

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Dura reported from Bismarck, North Dakota.



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