Hyundai Kia Hit with $9M Fine for Theft-Lax Tech

New York – A massive $9 million fine has been imposed on car manufacturers Hyundai and Kia by Attorney General Letitia James for neglecting to install effective anti-theft technology in their vehicles, a decision that has led to a surge in vehicle thefts, injuries, and fatalities.

Hyundai and Kia’s vehicles, produced between 2011 and 2022, were particularly vulnerable as thieves could bypass ignition switches easily and lacked engine immobilizers – an industry standard. This made these cars easy targets for theft, with methods to steal the cars going viral online, utilizing simple tools such as screwdrivers and USB cables.

Attorney General James noted, “Hyundai and Kia’s reckless decision to forego anti-theft measures led to a wave of car thefts that had deadly consequences.” The settlement includes $4.5 million for consumers whose vehicles were stolen or damaged recently and an additional $4.5 million in penalties to the states.

The lack of proper anti-theft technology contributed to a significant increase in vehicle thefts across New York State. In New York City, the number of Hyundai and Kia thefts doubled from 2021 to 2022. Monroe County reported over 1,400 stolen Hyundais and Kias in the first half of 2023. These vehicles were also linked to deadly car crashes and criminal activities.

Hyundai and Kia’s response was initially inadequate, with a service campaign to update software only launching in 2023. The companies offered zinc sleeves for ignition cylinders but excluded approximately twenty percent of their vehicles from the software update. However, the Attorney General James’ coalition argued that the software update could be bypassed easily.

The settlement mandates Hyundai and Kia to equip all future vehicles with engine immobilizers and provide zinc sleeves at no cost through dealerships. They must also continue publicizing anti-theft measures for five years. This landmark agreement is a testament to the state’s commitment to vehicle safety and consumer protection.