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Kia and Hyundai will pay states $9 million over ignition theft investigations

The automakers are also required to install new hardware to the ignition system of affected vehicles, free of charge, to protect them against theft.
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New York Attorney General Letitia James and 35 other state Attorneys General announced Tuesday they won a $9 million agreement from auto manufacturers Hyundai and Kia for failing to include appropriate anti-theft technology in their vehicles.

Hyundai and Kia will pay $9 million to affected customers and to states that investigated the thefts. They are also required to install new hardware to the ignition system of affected vehicles, free of charge, to protect them against theft.

The carmakers will also include engine immobilizers in future vehicles sold in the U.S., which will make them more difficult to steal.

"Hyundai and Kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences," Attorney General James said in a statement on the agreement. "No one should have to fear for their lives on the road, and car companies have a responsibility to protect their customers from basic safety flaws."

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The rise of thefts of Hyundai and Kia vehicles was due to vulnerabilities in models produced between 2011 and 2022. Their ignition switches could be bypassed using simple tools and the cars lacked engine immobilizers that would have made them more secure.

Thefts became a social media trend.

As a result, New York State says, "The number of Hyundai and Kia thefts in New York City doubled from 2021 to 2022."

Stolen vehicles were involved in a fatal crash in the state in July 2023, and linked to a fatal shooting that took place in September 2023.

States joining the investigation with New York were Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, Wisconsin, as well as the District of Columbia.