Hyundai and Kia Face $500M Settlement to Fix Theft‑Prone Vehicles

In a sweeping settlement announced Tuesday, Minnesota Attorney General Keith Ellison led a coalition of 35 states to compel Hyundai and Kia to offer free repairs for millions of vehicles that lacked proper anti‑theft technology.

Nationwide Settlement Details

The agreement requires the automakers to provide a free repair to all eligible vehicles, a cost that could exceed $500 million. Hyundai and Kia must also install an engine immobilizer on every future U.S. model and pay up to $4.5 million in restitution to owners whose cars were damaged by thieves.

Eligible vehicles span models from 2011 through 2022, totaling about 9 million sold across the country. The states involved include California, New Jersey, New York and Pennsylvania, among others.

Ellison said the companies had installed engine immobilizers on cars sold in Mexico and Canada but had not made the feature widespread in the United States, leaving vehicles vulnerable to theft, crashes and injuries.

The Theft Surge and Social Media Role

Thefts of Hyundai and Kia vehicles surged after 2021 when TikTok and other platforms shared videos showing how a car could be stolen with just a screwdriver and a USB cable. Minneapolis reported an 836 % increase in thefts of these models from 2021 to 2022.

State Farm and Progressive have begun dropping coverage on certain Kia and Hyundai models after the TikTok trend demonstrated how the cars could be taken without a key, using only a phone USB charger. Lynda Baquero reports.

A video posted to TikTok illustrated how to hotwire a Kia by inserting a USB cord and a screwdriver, and the clip aired on NBC4 News on Thursday, September 22, 2022.

Ellison announced an investigation into the automakers in early 2023. “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,” he said at a news conference.

Repair Plan and Timeline

Under the settlement, Hyundai and Kia will install a zinc sleeve to prevent thieves from cracking open a vehicle’s ignition cylinder. Customers will have one year from the date the companies issue notice to obtain the repair at an authorized dealership.

The repairs are expected to be available from early 2026 through early 2027.

In separate statements, the automakers said the agreement is one of many anti‑theft efforts they have taken to help customers.

“Kia is eager to continue working with law enforcement officers and officials at federal, state, and local levels to combat criminal car theft, and the role social media has played in encouraging it, and we remain fully committed to upholding vehicle security,” the company said.

Hyundai added, “We will continue to take meaningful action to support our customers and ensure peace of mind.”

Key Takeaways

• A $500 million settlement forces Hyundai and Kia to offer free repairs and install engine immobilizers.
• About 9 million vehicles from 2011‑2022 are eligible, with a 35‑state coalition behind the action.
• The settlement follows a spike in thefts tied to TikTok videos that showed how to hotwire the cars.

The settlement marks a significant step in addressing the security gaps that left millions of Hyundai and Kia owners exposed to theft and related harms. Dura reported from Bismarck, North Dakota.