Kia and Hyundai agree to $200M settlement for making cars viral theft targets

Enlarge / We used this image of an Ars staffer’s stolen Hyundai to illustrate how common the thefts were in February 2022. Since then, one of this author’s neighbors had a Kia broken into, and another had a joyride Hyundai ditched on his lawn after crashing through his fence. (credit: Andrew Cunningham)

Hyundai and Kia will pay out $200 million in a class-action lawsuit settlement, compensating roughly 9 million people for their losses after a 2022 social media trend revealed how relatively simple it was to steal certain models.

As reported by Reuters, $145 million of the payout goes to the out-of-pocket expenses of those whose cars were stolen. Many Kias made between 2011-2021, and Hyundais from 2015-2021, lacked electronic engine immobilizers, which would prevent a car from starting unless an electronically matched key was present. Without the immobilizer, the car could be started by turning the ignition with other objects, such as a USB-A cable that thieves discovered was a perfect fit.

Customers whose cars were totaled are eligible for up to $6,125, while damaged vehicles and property can receive a maximum of $3,375, along with costs for raised insurance, car rental, towing, tickets, and others. Kia and Hyundai had previously pledged to provide free software upgrades to vehicles and free wheel locks (i.e. The Club), typically in coordination with regional police departments. The NHTSA said in February that the companies have given out 26,000 wheel locks since November 2022.