Kia and Hyundai may soon pay nearly half a billion dollars. This payment addresses vulnerable vehicles targeted in widespread Kia and Hyundai thefts. This week, the automakers reached a settlement with 35 U.S. states. The agreement concerns millions of vehicles sold nationwide. These cars lacked a standard anti-theft system, the engine immobilizer.
According to Jadeh Makhsoos News Agency, this technology prevents a car from starting without a coded signal from a smart key. Without this protection, thieves could start some Kia and Hyundai models. They used a USB cable end to activate the exposed ignition cylinder. Videos on TikTok showing this vulnerability fueled the “Kia Boys” trend. Teenagers primarily stole these cars for joyrides.
Minnesota Attorney General Keith Ellison issued a press statement. He stated, “Maintaining public safety means holding accountable those who commit crimes.” Ellison added, “It also means holding companies accountable when their greed helps criminals harm Minnesotans.” Ellison launched an investigation into these thefts in 2023. This investigation ultimately led to this week’s settlement.
The State Attorney General’s office reported a significant increase. Minneapolis saw an 836% rise in Kia and Hyundai thefts from 2021 to 2022. In New Jersey, also part of the settlement, Kia and Hyundai vehicles comprised about 6.5% of cars on the road. However, they accounted for approximately 19% of all car thefts in 2023. This trend also caused several serious and fatal accidents.
Jadeh Makhsoos reports, as part of the new agreement, Kia and Hyundai must now provide free hardware repairs for affected vehicles. These repairs cover 2011-2022 model year Hyundai and Kia cars. The factory did not equip these specific models with an engine immobilizer. Specifically, the automakers must now install reinforced ignition cylinder protectors.
Kia and Hyundai will also pay up to $4.5 million to eligible consumers. These consumers had their vehicles damaged by thieves. Additionally, they will pay another $4.5 million to states. This payment helps cover investigation costs. In email statements to Gizmodo, Kia and Hyundai explained the new multi-state agreement.
It builds on their efforts to help customers protect themselves. These efforts address “theft methods popularized on social media.” Both automakers highlighted free security software updates. These updates have helped reduce theft rates. They also mentioned distributing free steering wheel locks and providing financial aid to affected customers.
In 2023, these automakers paid $200 million to resolve a class-action lawsuit. They also introduced a software update. This update equipped some vehicles with an engine immobilizer system. At that time, they limited reinforced ignition cylinder protectors to cars that could not receive the update. Under the new agreement, all eligible vehicles can now receive this protector for free.
The automakers will notify eligible owners in early 2026. Owners will then have one year to install this protector. This settlement aims to mitigate the impact of the widespread Kia and Hyundai thefts.