Car manufacturers Hyundai and Kia have agreed to a multimillion-dollar settlement after allegations that they neglected to implement adequate anti-theft measures in their vehicles, making them an easy target for thieves. According to the New York Attorney General's Office, the settlement includes financial restitution for consumers and mandates reforms to ensure vehicle security. A united front of 35 attorneys general pushed for this accountability from the automotive giants.
"Hyundai and Kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences," Attorney General James stated. Given the steep rise in thefts of these specific car models, the settlement payout includes up to $4.5 million for customers whose vehicles were either stolen or damaged due to the security oversight. An additional $4.5 million will be paid in penalties to the states involved in the coalition, striving to recoup losses and bolster public safety measures, as per the Attorney General's Office.
From the years 2011 to 2022, Hyundai and Kia vehicles became a prime target for car thieves due to a lack of engine immobilizers and easily bypassed ignition switches. In an era of viral information, instructional videos circulated online, showcasing how to hotwire these cars using common items such as screwdrivers and USB cables. The immense spike in vehicle thefts has had a significant impact on communities, with New York City experiencing an exponential increase in stolen Hyundai and Kia cars from 2021 to 2022.
Consequently, a plethora of crimes were correlated with the stolen vehicles, including fatal accidents and violent crimes. In July 2023, stealing a Hyundai resulted in the tragic death of two teenagers after colliding with another car. As part of the mandated reforms, Hyundai and Kia are now required to fit all future models with engine immobilizers and provide current owners with zinc ignition cylinder sleeves to prevent theft - measures that several lives could have been possibly saved if only they had been implemented sooner.
In addition to the preventive measures being made available at no cost to consumers, the settlement also includes a claims process for restitution. Eligible consumers, particularly those who have already installed the software update but still encountered theft or attempted theft post-April 29, are directed to the settlement website for further details. This comprehensive action plan looks to future-proof vehicle security and extend vigilant protections to car owners, with New York expecting to receive a substantial sum of over $220,000 as part of the agreement.
The multi-state legal team, including key contributors such as Assistant Attorney General Franklin Romeo, received supervision from Jane M. Azia and Laura J. Levine, reflecting a large-scale effort to address the substantial safety failings.
