Automakers Hyundai and Kia must provide free repairs on millions of vehicles under a settlement announced Tuesday by Minnesota’s attorney general. Minnesota’s attorney general is leading an effort by dozens of states to argue that the vehicles are not equipped with proper anti-theft technology, leaving them vulnerable to theft.
Minnesota Attorney General Keith Ellison said the companies would provide free repairs to all eligible vehicles under the nationwide settlement, which could cost as much as $500 million. Hyundai and Kia must also equip all future vehicles sold in the United States with a key technology called an engine immobilizer and pay up to $4.5 million in compensation to people whose vehicles are damaged by thieves.
Thirty-five states, including California, New Jersey, New York and Pennsylvania, reached settlements. Vehicles eligible for repair date back to 2011 and as recently as 2022. About 9 million eligible vehicles were sold nationwide.
Thefts from Hyundai and Kia vehicles have surged, in part due to videos posted on TikTok and other social media starting in 2021 showing how cars can be stolen with just a screwdriver and a USB cable. Minneapolis reports an 836% increase in thefts from Hyundai and Kia vehicles from 2021 to 2022. Ellison announced investigations into the two automakers in early 2023.
Ellison said the companies installed engine immobilizers on cars sold in Mexico and Canada but were not widely installed in the United States, leading to car thefts, crime and crashes that injured and even killed people, including teenagers.
“The crisis we’re talking about today started in a boardroom, spread through the Internet, and ultimately had tragic consequences because someone stole these cars,” Ellison said at a news conference.
He was joined by Twin Cities officials, a woman whose mother was killed when a stolen Kia crashed into her parents’ vehicle, and a man whose car had been stolen nine times — as recently as Monday night, seven of them after previous software fixes.
Under the settlement, Hyundai and Kia will install a zinc sleeve to stop would-be thieves from opening the vehicle’s ignition cylinder and starting the car.
Eligible customers will have one year from the date of notification from the company to have it repaired at an authorized dealer. Maintenance work is expected to take place from early 2026 to early 2027.
Kia said in a statement that the agreement is the latest step it has taken to help customers and prevent theft.
“Kia is eager to continue working with law enforcement and officials at the federal, state and local levels to combat the crime of auto theft and the role social media plays in encouraging crime, and we remain fully committed to keeping our vehicles safe,” the company said.
The Associated Press reached out to Hyundai for comment via email.
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Dulla reported from Bismarck, North Dakota.
