- Hyundai and Kia will add anti-theft devices to 4 million older cars as part of a settlement with 35 state attorneys general.
- The move comes after a wave of thefts in cars that lacked common anti-theft measures.
Hyundai and Kia will retrofit 4 million cars with one anti-theft technology, and ensure that future vehicles contain another to settle a lawsuit brought by 35 states.
The case stems from a wave of thefts driven by social media videos that showed easy ways to steal some older Hyundai and Kia cars.
The companies will also reimburse the states for the cost of the lawsuit and create a fund to support owners who have been forced to repair damaged cars.
What Started This
- Hyundai and Kia, which share partial ownership and many components, built some cars without the auto industry’s standard anti-theft technology.
Base models of some 2015-or-newer Hyundai and 2011-or-newer Kia cars lack an engine immobilizer. This common anti-theft device prevents a vehicle from starting without its smart key present.
That enables thieves to steal them by dismantling the ignition cylinder and starting the car using a common USB plug.
Social media videos demonstrating the trick led to a theft wave so intense that a 2022 insurance industry report showed that loss claims for Hyundai and Kia models from those years were nearly twice as common as claims for vehicles made by any other manufacturer.
Some major insurance companies have begun declining coverage on certain models in some states because the theft risk is high enough to throw off actuarial calculations.
What the Companies Have Already Done
- Both have rolled out free software updates meant to stem the thefts and provided free steering wheel locks.
The two companies have taken several steps to address the problem.
They have offered free steering wheel locks to owners, often working through police departments. They have also installed software meant to make the cars harder to steal.
Those measures have slowed, but not stopped, the problem.
What They Will Do Now
- The companies have agreed to install armored ignition cylinders that are more difficult to dismantle, and set up a fund to reimburse those whose cars were damaged.
- They’ve also pledged to include immobilizers in future cars, but that’s a costless step – all their new vehicles already include one.
Under the settlement, New Jersey Attorney General Matthew Platkin’s office says, Hyundai and Kia have promised to retrofit 4 million older cars with “free zinc-reinforced ignition cylinder protectors.”
Minnesota Attorney General Keith Ellison told the Associated Press that the effort could cost the companies up to $500 million.
Owners will be eligible for the upgrade whether they have installed the anti-theft software or not.
The companies also pledged to include immobilizers in future cars. That’s a cost-free step – both companies have included immobilizers in every vehicle they’ve built since 2023.
Finally, Platkin says, they will “Provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves,” and reimburse states another $4.5 million for their legal expenses.
