Hyundai and Kia Settle for $500M to Patch Theft‑Vulnerable Cars

A settlement announced Tuesday by Minnesota Attorney General Keith Ellison will see Hyundai and Kia spend more than $500 million to patch a vulnerability that left millions of cars open to theft.

Settlement Details

Under the nationwide agreement, the two automakers will offer a free repair to every eligible vehicle, a move that could cost the companies more than $500 million. The companies will also be required to install an engine immobilizer on all future U.S. models and pay up to $4.5 million in restitution to owners whose cars were damaged by thieves. The settlement was reached by 35 states, including California, New Jersey, New York and Pennsylvania, and covers vehicles sold as far back as 2011 and as recently as 2022. Roughly 9 million cars nationwide qualify for the fix.

The Rise of TikTok‑Fueled Theft

The surge in Hyundai and Kia thefts began in 2021 when TikTok and other social‑media platforms began sharing videos that showed 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. Ellison announced an investigation into the automakers in early 2023 after discovering that the vehicles were not equipped with proper anti‑theft technology in the United States, even though the companies had installed engine immobilizers on cars sold in Mexico and Canada.

Impact on Consumers and Insurance

State Farm and Progressive have begun to drop coverage on certain Kia and Hyundai models after the TikTok trend highlighted how the cars could be stolen without a key, using only a phone USB charger. Lynda Baquero reports that the trend has prompted insurance companies to reassess risk for owners. At a news conference, Ellison said, “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.” The settlement will allow eligible customers to have the repair done at an authorized dealership within one year of the companies’ notice, with service available from early 2026 through early 2027.

Automakers’ Response

Both Hyundai and Kia have released statements acknowledging the agreement as part of multiple anti‑theft efforts. Kia said, “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,” while Hyundai added, “We will continue to take meaningful action to support our customers and ensure peace of mind.” The companies will install a zinc sleeve to prevent thieves from cracking open a vehicle’s ignition cylinder.

Key Takeaways

• The settlement will cost more than $500 million and covers 9 million vehicles from 2011‑2022.
• Hyundai and Kia must add engine immobilizers to all future U.S. models and pay up to $4.5 million in restitution.
• Repairs, including zinc sleeve installation, will be available at authorized dealerships from early 2026 to early 2027.

The settlement marks a significant step toward securing millions of vehicles that had been left vulnerable to theft, a problem amplified by social‑media hacks and a lack of anti‑theft technology in the U.S. market.