A settlement between Hyundai, Kia, and 36 state attorneys general addresses a years-long wave of car thefts stemming from a critical security flaw in millions of vehicles. The issue, amplified by viral TikTok videos demonstrating how easily these cars could be stolen, led to a dramatic increase in vehicle thefts across the United States.
The Core of the Problem
Between 2011 and 2022, Hyundai and Kia manufactured vehicles with easily bypassed ignition systems and lacking standard anti-theft devices (engine immobilizers) common in nearly all other new cars sold during that period. This made millions of models incredibly vulnerable to theft. The flaw was particularly acute in the Hyundai Elantra, Hyundai Sonata, and Kia Optima, which became the most frequently stolen vehicles in many areas.
Weak Settlement, Limited Relief for Owners
The settlement requires Hyundai and Kia to pay $4.5 million to states to cover investigation costs, and a separate $4.5 million in restitution to affected consumers. However, the consumer payout is severely limited and restricted to those whose vehicles were either totaled or partially damaged in a theft.
- Total loss: up to $4,500
- Partial loss: up to $2,250
- Failed theft attempt: only up to $375
These figures are widely considered inadequate, as even a minor theft attempt can cause significant damage far exceeding the allotted restitution. The California Attorney General’s Office noted victims face “significant costs for repairs and towing,” while resale values plummeted and insurance rates rose for all owners, regardless of theft status.
Ignition Cylinder Reinforcements for 7.1 Million Vehicles
The automakers have agreed to equip all future U.S. models with engine immobilizers. They will also provide free, zinc-reinforced ignition cylinder protectors to approximately 7.1 million existing owners (4 million Hyundais and 3 million Kias). Minnesota’s Attorney General estimates this could cost the companies over $500 million, but the actual expense depends on uptake and manufacturer estimates.
The Broader Impact of the Crisis
The surge in thefts wasn’t just about stolen vehicles. California authorities reported that many stolen cars were used in other crimes and were involved in traffic collisions, some fatal, extending the consequences beyond financial loss to include serious safety risks. The thefts rose by roughly 85% in Los Angeles in 2022, representing 20% of all stolen cars in the city.
The situation underscores a critical oversight in vehicle security standards and highlights the devastating consequences when automakers prioritize cost savings over fundamental safety features. While the settlement provides some remedy, it falls short of fully addressing the financial and emotional toll on affected owners.
