Millions to Benefit from Hyundai and Kia Repair Settlement for Anti-Theft Technology

In a significant legal resolution spearheaded by Minnesota's attorney general, millions of owners of Hyundai and Kia vehicles are set to receive complimentary repairs. This settlement involves several states which contended that these cars lacked adequate anti-theft features, making them easy targets for thieves.

The surge in vehicle thefts has propelled nearly two dozen state attorneys general to push the car makers into action during 2023.

A 2023 study by the Highway Loss Data Institute, tied to the Insurance Institute for Highway Safety, found that Hyundai and Kia cars without the 'engine immobilizers'—a common anti-theft device in other modern cars—experienced a theft claim rate of 2.18 per 1,000 insured vehicle years. Comparatively, the industry rate was 1.21.

The nationwide settlement mandates that Hyundai and Kia provide complimentary repairs, potentially amounting to over $500 million, according to Minnesota Attorney General Keith Ellison. The companies must also ensure that future U.S. models feature engine immobilizers, along with compensating up to $4.5 million for damages incurred by theft victims.

The agreement spans 35 states, including major ones like California, New York, New Jersey, and Pennsylvania. Vehicles eligible for repairs were sold from 2011 to 2022, with an estimated 9 million vehicles qualifying for the enhancements.

Social Media Influence on Theft Rates

Since 2021, Hyundai and Kia thefts have escalated, partly due to viral TikTok videos and other social media platforms showing easy theft methods using just a screwdriver and USB cable.

In Minneapolis alone, thefts of these vehicles skyrocketed by an astounding 836% between 2021 and 2022, prompting Attorney General Ellison to initiate an inquiry into the automakers in early 2023.

Ellison highlighted that while engine immobilizers were standard in Hyundai and Kia vehicles sold in Mexico and Canada, their lack of adoption in the U.S. led to rising car thefts, subsequent crimes, and accidents, some with tragic results involving teenagers.

Ellison remarked at a press briefing, 'The crisis began in boardrooms, spread through the internet, and ended in disasters when cars were stolen.' He spoke alongside city officials, as well as victims affected by these thefts, including a woman whose mother died in a related accident and a man whose car was stolen multiple times.

As part of the settlement, Hyundai and Kia are set to incorporate a zinc sleeve designed to prevent thefts by protecting the ignition cylinders from being tampered with.

Car owners will have one year from receiving notice from the companies to secure the repair from authorized dealerships, with modifications available from early 2026 through early 2027.

In a message to CBS News, Kia noted that this settlement is among their efforts to support customers and deter thefts, highlighting their free software upgrade initiative, distribution of steering wheel locks, and zinc-sleeve hardware modification to counteract theft methods popularized online.

Hyundai did not immediately provide a comment.