"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 U.S. 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."
"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 U.S., 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."
Hyundai and Kia will provide free repairs to eligible vehicles after states argued the cars lacked proper anti-theft technology, leaving them vulnerable to theft. The companies must outfit future U.S. models with engine immobilizers and will pay up to $4.5 million in restitution to owners of damaged vehicles. The settlement, reached by 35 states, covers cars from 2011 through 2022 and affects about 9 million vehicles; repair costs could exceed $500 million. Theft spikes were driven in part by social media demonstrations beginning in 2021 showing how to steal these cars with simple tools. Investigations followed after local surges in thefts and crashes that caused injuries and deaths.
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