Automakers Hyundai and Kia must offer free repairs to millions of models under a settlement announced Tuesday by Minnesota’s attorney general, who led an effort by dozens of states that argued the vehicles weren’t equipped with proper anti-theft technology, leaving them vulnerable to theft.
Under the nationwide settlement, the companies will offer a free repair to all eligible vehicles at a cost that could top $500 million, Minnesota Attorney General Keith Ellison said. Hyundai and Kia must also outfit all future vehicles sold in the US with a key piece of technology called an engine immobilizer and pay up to $4.5 million of restitution to people whose vehicles were damaged by thieves.
The settlement was reached by 35 states, including California, New Jersey, New York, and Pennsylvania. The vehicles eligible for fixes date as far back as 2011 and as recently as 2022. About 9 million eligible vehicles were sold nationwide.
Thefts of Hyundai and Kia vehicles soared in part because beginning in 2021, videos posted to TikTok and other social media demonstrated how someone could steal a car with just a screwdriver and a USB cable. Minneapolis reported an 836% increase in Hyundai and Kia thefts from 2021 to 2022. Ellison announced an investigation into the automakers in early 2023.
Ellison said the two companies installed engine immobilizers on cars sold in Mexico and Canada, but not widely in the US, leading to car thefts, crimes and crashes that injured and even killed people, including teenagers.
“This crisis that we’re talking about today started in a boardroom, traveled through the Internet and ended up in tragic results when somebody stole those cars,” Ellison said at a news conference.
He was joined by Twin Cities officials, a woman whose mother was killed when a stolen Kia crashed into her parents’ vehicle and a man whose car was stolen nine times — as recently as Monday night, and including seven times after a previous software fix.
