Hyundai and Kia have agreed to pay up to $210 million as a settlement for a class-action lawsuit related to car thefts in the US. The lawsuit covered a range of car models made between 2011 and 2022 that had a traditional “insert-and-turn” key ignition system and lacked antitheft features that would have made them less susceptible to theft. The automakers had earlier promised to offer software upgrades to 8.3 million US models in February, to curb the incidence of car thefts spread through TikTok, but the lawsuit pressed for a more concrete solution. The settlement provides payments of up to $6,125 per owner who faces a complete loss of their vehicle, as well as up to $3,375 in compensation for damage to both the vehicle and personal property.
The car theft campaign spread on social media, including a TikTok challenge, that highlighted the vulnerability of the vehicles concerned, becoming one of the most significant challenges for carmakers globally. Both Kia and Hyundai faced a barrage of lawsuits from several cities and 17 US states over the thefts, which were attributed to the omission of an immobilizer that prevents the engine from starting unless the key is present. The challenge, known as the “Kia Challenge,” became hugely popular on social media platforms as videos showed how the cars could be stolen within 90 seconds after being unlocked with the traditional key system.
Up to $145 million from the settlement funds will be used to reimburse owners who had their vehicles stolen or damaged. Other expenses, such as those not covered by insurance, such as those arising from car rental, taxi fares, ride-share costs, or public transit payments would also be included to offer a comprehensive compensation package. The settlement comes after reports linking the thefts to 14 crashes and eight fatalities.
The settlement is designed to offer a more comprehensive solution to Hyundai and Kia owners, whose vehicles were among the most vulnerable to the thefts. The South Korean automakers have taken steps to address the issue, such as providing security software upgrades and distributing over 65,000 steering-wheel locks. However, it is significant because it provides a comprehensive compensation scheme to owners whose vehicles have been stolen or damaged, including those who may have missed work, incurred increased insurance premiums, or faced other theft-related costs.
The Hyundai and Kia settlement is an important step in offering a comprehensive solution to a problem that has left many owners frustrated. The settlement offers a comprehensive compensation plan that includes reimbursement for losses from theft, damages to personal property, and insurance-related expenses. The automakers have also taken steps to curb car theft by providing software upgrades and free steering wheel locks to customers. The Hyundai and Kia settlement is an essential step that will significantly ease the burden that owners of these car models have faced as a result of the vulnerability of the car’s traditional anti-theft systems.
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