Hyundai and Kia Agree to $200 Million Legal Settlement Over Theft Issues
Korean automakers Kia and Hyundai have reached a settlement in a class-action lawsuit worth an estimated $200 million. The lawsuit alleged that many of the companies’ cars and SUVs were susceptible to theft.
The settlement is expected to cover up to nine million vehicle owners, providing a total of up to $145 million to compensate owners for their out-of-pocket losses resulting from vehicle theft.
The compensation may include payments of up to $6,125 per owner for the complete loss of their vehicle, as well as payments for vehicle damage and damage to personal property up to $3,375.
It may also cover expenses related to insurance, such as car rental, taxi fare, ride-share costs, or public transit payments not covered by insurance.
Additionally, the settlement may include costs associated with installing anti-theft software systems and other anti-theft measures.
The final settlement amount, which could be slightly higher or lower than $200 million, will depend on the number of owners participating in the settlement.
The affected vehicles are 2015-2019 models of Hyundai and Kia, including popular models such as the Hyundai Santa Fe, Tucson, and the Kia Forte and Sportage.
These vehicles, equipped with turn-key ignitions rather than push-button start systems, were found to be twice as likely to be stolen as other vehicles of similar age.
According to the Highway Loss Data Institute, many of these vehicles lack basic auto theft prevention technology present in most other vehicles from the same years.
The method of theft, involving the use of a USB cable to start the car, gained popularity through social media platforms like TikTok.
Roland Tellis of the law firm Baron & Budd stated that the settlement offers comprehensive relief and serves as a lesson to automakers not to overlook essential safety features.
While Hyundai and Kia operate as separate companies in the United States, Hyundai Motor Group owns a significant stake in Kia, and the two brands share much of their engineering.
The automakers have already taken steps to address the issue of theft. They have developed a software patch to address the vulnerability, which is being installed free of charge on affected models.
The software requires the use of an actual key in the ignition to start the vehicle and prevents the vehicle from starting if the doors have been locked using the key fob remote control.
The software also extends the length of the alarm sound and dealers will affix window stickers to indicate the presence of anti-theft software.
As part of the settlement, the anti-theft software will be automatically installed during any dealer service appointment without the need for specific customer requests.
Owners whose vehicles cannot receive the software upgrade will be eligible for reimbursement of up to $300 for the installation of alternative anti-theft measures such as glass breakage alarms, steering wheel locks, or other deterrents.
Hyundai Motor North America’s Chief Legal Officer, Jason Erb, expressed appreciation for the opportunity to provide support to owners affected by increasing vehicle thefts.
The settlement represents another step taken by the automakers to address the issue and protect their customers.
