Hyundai and Kia to Pay $9 Million Settlement Over Vehicle Theft Vulnerabilities
A bipartisan coalition of 36 state attorneys general has secured a settlement totaling up to $9 million from Hyundai and Kia to address widespread vulnerabilities that led to a surge in vehicle thefts across the nation. The agreement mandates important financial restitution for affected consumers, penalties for the automakers, and crucial safety upgrades to prevent future incidents.
Between 2011 and 2022, a lack of engine immobilizers, an industry-standard anti-theft technology, left certain Hyundai and Kia vehicles especially vulnerable. This omission, coupled with easily bypassed ignition switches, allowed thieves to quickly hotwire the vehicles, often using readily available tools like screwdrivers and USB cables.The ease with which these cars could be stolen was widely demonstrated in viral videos circulating online, exacerbating the problem.
“Hyundai and kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences,” stated New York Attorney General Letitia James. “No one should have to fear for their lives on the road, and car companies have a responsibility to protect their customers from basic safety flaws.”
New York Hit Hard by Theft Surge
The impact was particularly acute in New York State. In New York City, the number of Hyundai and Kia thefts doubled from 2021 to 2022. The first four months of 2023 saw 977 reported thefts, a dramatic increase from the 148 recorded during the same period in 2022. Outside of New York City, Monroe County experienced over 1,400 stolen Kias and Hyundais in the first half of 2023, while in Syracuse, these two brands accounted for more than half of all vehicle thefts during the first seven months of the same year.
Tragically, the thefts were linked to violent crimes and fatalities. In July 2023, a 16-year-old driving a stolen Hyundai in Washington Heights was involved in a collision that claimed the lives of two teenagers, aged 15 and 17. Similarly,in Syracuse,stolen Hyundai and Kia vehicles were connected to the fatal shooting of two teenagers in September 2023.
Delayed response and Inadequate Fixes
Hyundai and Kia were criticized for their slow response to the escalating crisis. The companies did not launch a service campaign to update vehicle software until 2023. They also offered to install zinc sleeves over ignition cylinders, but this solution was limited to roughly 20% of affected vehicles – those ineligible for the software update. the coalition of attorneys general alleges that even the software update proved insufficient, as thieves were able to bypass it.
Terms of the Settlement
The settlement reached with the attorneys general requires Hyundai and Kia to implement several key changes. All future vehicles will be equipped with engine immobilizers to deter theft. The companies will also provide zinc ignition cylinder sleeves at no cost to consumers through local dealerships and will continue to publicize the availability of anti-theft measures for the next five years.
Hyundai and Kia will pay $4.5 million in penalties to the states,with New York expected to receive over $220,000. Additionally, $4.5 million will be allocated to consumers whose vehicles were stolen or damaged. Consumers who installed the software update, or were scheduled to, and subsequently experienced a theft or attempted theft after April 29, 2025, are eligible to file a claim for restitution. Information about the claims process can be found on the settlement website.
The investigation and settlement involved the attorneys general of 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, North carolina, North Dakota, Ohio, Oklahoma, oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, Wisconsin, and the District of Columbia.
In New York, the case was handled by Assistant Attorney General Franklin Romeo, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Consumer Frauds and Protection Bureau, within the Division for Economic Justice.
Keep reading
- Motor Vehicle Theft Drops 54% Year-Over-Year (archyde.com)
- Megawati Watches as Hyundai Hillstate Suffers Straight-Set Defeat (newsy-today.com)
