Hyundai, Kia Ordered To Pay Up Over Thefts
Remember the " Kia Boyz"? Well, thanks to car theft caused by those folks and others, and thanks to accusations of failure to properly address the problem, Hyundai and Kia are on the hook for half a billion dollars.
A slew of Kia and Hyundai models made from 2011 to 2022 didn't have immobilizer anti-theft devices and could also be started using a USB-A device. Of course, the hack that allowed folks to steal these cars went viral on the internet, and hardware and software updates didn't seem to solve the problem.
Minnesota Attorney General Keith Ellison brought a lawsuit, and the two companies have settled.
As part of the settlement, Kia and Hyundai have agreed to install anti-theft devices on over four million cars. Additionally, they will have to install engine immobilizer technology on all future vehicles they sell in the United States.
These devices will be zinc-reinforced ignition-cylinder protectors. They should keep the key cylinder from being cracked open, and thus prevent thieves from starting the car without a key.
Some vehicles were previously only eligible for software updates -- these devices will be installed on those cars.
Hyundai and Kia will pay for the fixes, of course, but also pay restitution to customers and states, including those who had cars that were stolen and damaged. Some of that money is meant to defray the costs of the investigations. The automakers and Ellison estimate that the device installations will cost $500 million.
"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.
If you own an affected vehicle, you'll be notified early next year and have until the end of 2027 to have a dealer perform the fix at no charge.
[Image: Kia]
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Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.
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Seems like all the bad PR and legal fees are not worth the 50¢ they saved per car.
This may be enough for the slow learners to realize that K-H vehicles are not a good use of their money, even if most of it goes to interest on low-scoring loans.