Automakers Hyundai and Kia must install anti-theft technology and offer free ignition cylinder protectors after a $9 million settlement announced Tuesday, initiated by Hawai‘i and 34 state attorneys general.
This comes after an increasing number of vehicles were stolen in recent years due to their lack of engine immobilizers, fueling social media trends exposing the vehicles' vulnerabilities, such as “Kia Boys,” a group of teenagers who exploited the security flaw to steal cars for joyrides and related crimes.
Hyundai and Kia topped the list of the most stolen vehicles in 2023, according to the National Insurance Crime Bureau.
The settlement addresses vulnerabilities in Hyundai and Kia vehicles manufactured between 2011 and 2022.
Under the settlement, Hyundai and Kia have agreed to equip all future vehicles sold in the U.S. with security features that prevent thieves from starting the engine and blocking off access to the ignition cylinder.
“This settlement ensures accountability and delivers meaningful corrective action and future protections for consumers,” Executive Director of the Office of Consumer Protection Mana Moriarty said in a news release. “Automakers have a responsibility to incorporate commonly accepted safeguards into their vehicles. When manufacturers choose not to use it, they put consumers and communities at risk.”
A 2015 report showed that only 26% of the vehicles Kia and Hyundai sold in the U.S. were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers.
Engine immobilizers prevent thieves from starting the car engine without the vehicle's smart key.
Stolen vehicles have led to public safety issues due to reckless driving and have caused injuries and deaths, according to the settlement.
In 2023, Hyundai and Kia launched a service campaign to update the safety on affected vehicles. In addition, the manufacturers installed a zinc-reinforced ignition cylinder protector, but only for roughly 20% of their vehicles that were ineligible for that update.
The state Department of Commerce and Consumer Affairs is urging consumers to schedule an installation of the zinc-reinforced ignition cylinder protector as soon as possible.
Under the settlement, Kia and Hyundai will pay up to $4.5 million in restitution for eligible consumers whose cars are damaged by thieves, and another $4.5 million to the states to defray the costs of the investigation.
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