Hyundai and Kia Agree to $500M Settlement Over Theft Vulnerability: Finally, millions of American owners of Hyundai and Kia vehicles are receiving respite. This follows years of increasing theft rates and problems with viral social media. On Tuesday, automakers announced a historic $500 million settlement. They promised to pay in cash and offer free repairs. This fixes the serious flaw that gave criminals access to millions of cars.
35 state attorneys general and automakers came to an agreement. It seeks to put an end to a situation where theft rates in some places have increased by more than 800%. Customers suffered millions of dollars in damages and even lost their lives as a result of the problem.
What Went Wrong with the Core Vulnerability?
A industrial decision made between 2011 and 2022 is the root of the catastrophe. Hyundai and Kia neglected to install engine immobilizers in millions of American cars during this period. A car cannot be started without a coded key thanks to this common anti-theft mechanism.
Automakers left U.S. vehicles unprotected while installing the technology in Canada and Mexico. Beginning in 2021, thieves brutally took advantage of this security flaw. Using only a screwdriver and a USB cable, popular TikTok videos demonstrated how to hotwire the vehicles.
According to Minnesota Attorney General Keith Ellison, who oversaw the probe, “this crisis that we’re talking about today started in a boardroom, traveled through the Internet and ended in tragic results when somebody stole those cars.”
Hyundai Kia Theft Lawsuit Update
Approximately 9 million eligible automobiles are covered under the complete agreement. What the settlement offers customers is as follows:
Free Hardware Repair: The ignition cylinder will have a zinc sleeve installed by Hyundai and Kia. The purpose of this hardware update is to stop criminals from opening the ignition system and starting the car.
Cash Restitution: Owners whose cars were stolen or destroyed will get up to $4.5 million in compensation from the automakers.
- Total Loss: Up to $4,500 may be awarded to owners.
- Owners may collect up to $2,250 in partial loss.
Future Protections: As part of the agreement, both businesses must install engine immobilizers in all upcoming cars sold in the United States.
Schedule of Repairs
You won’t have to wait long for a long-term solution if your car is impacted, but you will still need to be patient during the rollout:
Notification: Customers that qualify will have a year from the notice date to arrange for their repair.
Availability: Beginning in early 2026 and continuing until early 2027, authorized dealerships are anticipated to carry the zinc sleeve repairs.
Allegations Deadline: March 31, 2027 is the deadline for submitting a reparation claim.
Remarks from the Automakers
Kia responded to the settlement by highlighting that it is the most recent development in their continuous customer care initiatives. The business said, “Kia is eager to continue working with law enforcement officers and officials… to combat criminal car theft and the role social media has played in encouraging it.”
“Continue to take meaningful action to support our customers and ensure peace of mind,” Hyundai continued.
Qualifications
Residents of 35 states, including California, New York, New Jersey, Pennsylvania, and Minnesota, are covered by the settlement. For detailed eligibility information pertaining to their car model year (2011–2022), automakers advise owners to check the official Settlement Website or get in touch with their local dealership.