Hyundai and Kia owners could be in for a payment from a $4.5 million pot under a settlement announced Tuesday.
Minnesota's attorney general led an effort by dozens of states arguing certain vehicles weren't equipped with proper anti-theft technology, leaving them vulnerable to thefts.
Under the nationwide settlement, the companies will offer a free repair to all eligible vehicles at a cost that could top $500 million, Minnesota Attorney General Keith Ellison said.
Hyundai and Kia must also outfit all future vehicles sold in the U.S. with a key piece of technology called an engine immobilizer and pay up to $4.5 million of restitution to people whose vehicles were damaged by thieves.
The settlement was reached by 35 states, including California, New Jersey, New York and Pennsylvania. The vehicles eligible for fixes date as far back as 2011 and as recently as 2022. About 9 million eligible vehicles were sold nationwide.
Thefts of Hyundai and Kia vehicles soared in part because beginning in 2021, videos posted to TikTok and other social media demonstrated how someone could steal a car with just 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 on cars sold in Mexico and Canada, but not widely in the U.S., leading to car thefts, crimes and crashes that injured and even killed people, including teenagers.
“This crisis that we're talking about today started in a boardroom, traveled through the Internet and ended up in tragic results when somebody stole those cars,” Ellison said at a news conference.
He was joined by Twin Cities officials, a woman whose mother was killed when a stolen Kia crashed into her parents’ vehicle and a man whose car was 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 stop would-be 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. The repairs are expected to be available from early 2026 through early 2027.
In a statement, Kia said the agreement is the latest step it has taken to help its customers and prevent thefts.
“Kia 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, and we remain fully committed to upholding vehicle security,” the company said.
The Associated Press emailed Hyundai for comment.
The Hyundai-Kia multi-state immobilizer settlement website details which models are eligible for payment and repair.
Uber could face billions in penalties across US after ‘deceptive billing’ practices
The amount of money needed to retire comfortably, according to US workers
New jobs report shows over 100k jobs lost in October primarily due to federal layoffs
The best ways to plan an affordable party, according to experts
Customers at McDonald’s where Trump served fries echo nation’s complaints
Merry mind games - why experts say cash holiday gifts are complex
