Hyundai and Kia agree to $200M class-action settlement [New York Daily News]

New York Daily News, The (NY)

Hyundai and Kia have proposed a $200 million settlement to a class-action lawsuit on behalf of owners with cars left susceptible to theft due to the automakers’ failure to install basic security measures, according to case litigants.

“The lawsuit stems from the automakers’ failure to equip 2011-2022 models with an immobilizer, a common antitheft device in modern cars which prevents most vehicles from being started unless a code is transmitted from the vehicle’s smart key,” according to a statement posted by Hagens Berman, which was one of the law firms involved in the settlement.

The suit alleged a lack of safeguards allowed thieves to quickly and easily steal cars made by Kia America, Inc. and Hyundai Motor America, Inc. Approximately 9 million automobiles made by the affiliated auto brands were impacted by security issues.

Theft of those cars exploded sixfold in New York City, thanks in part to a TikTok “Kia Boyz Challenge” that became popular online in the summer of 2022. Mayor Eric Adams warned aspiring auto thieves not to participate in that online activity during a March 30 press conference.

“Being arrested for grand larceny auto is a felony,” Adams said. “It will remain on your record. It will remain with you for life.”

Lawyers contend thieves were able to start the engines of Hyundai and Kia vehicles with a common USB charging cord “or similar metal object.”

A representative from Kia America said Kia America, Inc. and Hyundai Motor America, Inc. were pleased to announce the resolution of the matter affecting specific makes and models of their automobiles.

“The agreement is valued at up to $200 million and will provide cash compensation for customers who incurred theft-related vehicle losses or damage in addition to reimbursement for insurance deductibles, increased insurance premiums, and other theft related losses,” the statement said.

Kia America added that free software updates and steering wheel locks will be provided to the owners of automobiles rendered vulnerable to theft by previous omissions.

Hyundai and Kia expect sales to see a 10% increase in 2023. Sales were down 4% in 2022, due in part to supply chain disruptions, according to Reuters. Both companies, which are owned by Hyundai Motor Group, were reportedly seeing solid back-order numbers going into the start of the new year.