Hyundai and Kia are set to offer free repairs to millions of consumers after it agreed to a $500 million settlement with a coalition of state attorneys general.
In 2022, videos started going viral on social media explaining a technical loophole that allowed thieves to steal certain models of Hyundai and Kia vehicles using nothing but a USB cable. The viral trend lead to an average of 17 vehicles being stolen every day in cities such as Columbus, Ohio. The Chicago Police Department claimed vehicle theft spiked 767% year-on-year between July and August 2022, due to the loophole being turned into a TikTok challenge. The LAPD made similar theft claims.
The trend even made it into the music world, with the so-called “Kia Boyz” phenomenon inspiring rap songs and Spotify playlists, while spreading far and wide on YouTube and TikTok.
Under the terms of the settlement, the automakers must provide up to $4.5 million in restitution to eligible consumers whose cars were damaged or stolen, as well as $4.5 million to participating states to cover the cost of the legal investigation. The payouts follow a $200 million class-action lawsuit settled in 2023.
In addition, the automakers have agreed to equip all future vehicles sold in the United States with engine-immobilizer anti-theft technology, designed to prevent a vehicle from being started without its “smart” key, which stores the vehicle’s electronic security code. The attorneys general said that only 26% of Kia and Hyundai vehicles sold in the US in 2015 were equipped with engine immobilizers, compared with 96% of vehicles sold by other manufacturers.
The automakers will also offer free zinc-reinforced ignition-cylinder protectors to owners or lessees of eligible vehicles, including some vehicles that had previously only been eligible for software updates, which started rolling out in February 2023. Users have until March 31, 2027, to get the upgrade, as per the settlement.
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A list of eligible vehicles and information on how to submit a claim, including deadlines, can be found on the settlement website. Vehicles eligible for the new hardware fixes date as far back as 2011 and as recently as 2022. Notifications to impacted users are set to roll out in early 2026.
In a statement, New Jersey Attorney General Matthew J. Platkin said that Hyundai and Kia had “deliberately failed to include industry-standard anti-theft technology in their vehicles, contributing to a nationwide spike in auto thefts.”
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