By David Shepardson
WASHINGTON, Dec 16 (Reuters) - Korean automakers Hyundai and Kia agreed on Tuesday to retrofit more than 4 million U.S. vehicles to address theft concerns and install prevention equipment
on all new vehicles to resolve an investigation by a bipartisan coalition of 35 attorneys general.
The state attorneys general said the automakers will offer free zinc-reinforced ignition cylinder protectors to owners of eligible vehicles, including vehicles previously only eligible for the companies’ software updates. They also agreed to equip all future U.S. vehicles with engine immobilizer anti-theft technology to help curb car thefts using a method popularized on TikTok and other social media channels.
TikTok videos showing how to steal cars without push-button ignitions and immobilizing anti-theft devices have led to at least 14 reported crashes and eight fatalities in the United States, regulators said in 2023.
AUTOMAKERS TO PAY RESTITUTION
Hyundai and Kia will also pay up to $9 million in restitution to consumers and to states to defray the costs of the investigation. Minnesota Attorney General Keith Ellison said the cost of installing ignition cylinder protectors on all eligible vehicles could exceed $500 million, citing estimates from the automakers.
"By failing to include industry-standard anti-theft technology in their vehicles, Hyundai and Kia unleashed a wave of auto thefts that cost Minnesotans their cars, their hard-earned money, and sometimes even their lives," Ellison said.
Hyundai said resolving the investigation is another step forward in addressing thefts involving certain 2011 through 2022 model year vehicles without engine immobilizers. "This cooperative agreement builds upon Hyundai's ongoing efforts to enhance vehicle security in response to a method of theft popularized on social media," Hyundai said.
Kia said the agreement "is the latest in a series of steps that Kia has taken to support our customers who have been impacted by criminals." Kia said the zinc-sleeve hardware modification combats the theft method inspired by social media "by reinforcing the ignition cylinder body and preventing its removal."
Once eligible consumers receive notices in early 2026, they will have until the end of March 2027 to get the ignition cylinder protector installed at local dealerships.
In 2023, Hyundai and Kia agreed to a consumer class-action lawsuit settlement worth $200 million over rampant car thefts of the Korean automakers' vehicles, according to lawyers for the owners. The automakers also in 2023 offered software upgrades to 8.3 million U.S. vehicles without anti-theft immobilizers.
(Reporting by David Shepardson in WashingtonEditing by Rod Nickel)
