Hyundai and Kia are set to spend more than $500 million to fix a flaw that left millions of vehicles open to theft after a TikTok trend showed how to hotwire a car.
Nationwide Settlement
On Tuesday, Minnesota Attorney General Keith Ellison announced a settlement that was negotiated by 35 states, including California, New Jersey, New York and Pennsylvania. The agreement requires the automakers to offer free repairs to all eligible vehicles, a cost that could top $500 million.
Ellison said the companies must also outfit every future U.S. vehicle with an engine immobilizer and pay up to $4.5 million in restitution to owners whose cars were damaged by thieves.
Who Is Affected?
The settlement covers vehicles sold between 2011 and 2022, a span that includes about 9 million cars nationwide. Thefts of Hyundai and Kia models surged after videos posted to TikTok and other social media in 2021 demonstrated how a car could be stolen with just a screwdriver and a USB cable.
Minneapolis reported an 836% increase in thefts of these brands from 2021 to 2022. Ellison launched an investigation into the automakers in early 2023.
Ellison noted that the companies had installed engine immobilizers on cars sold in Mexico and Canada, but not widely in the U.S., leading to thefts, crimes and crashes that injured and killed people, including teenagers.
Repair Details
Under the settlement, Hyundai and Kia will install a zinc sleeve that prevents thieves from cracking open a vehicle’s ignition cylinder. Eligible customers will have one year from the date the companies send notice to obtain the repair at an authorized dealership.
The repairs are expected to be available from early 2026 through early 2027.
Industry Response
State Farm and Progressive have begun dropping coverage on certain Kia and Hyundai models after the TikTok trend showed how to steal the cars without a key, using only a phone USB charger.
In separate statements, the automakers emphasized that this agreement is one of many anti‑theft efforts they have taken to help customers.
“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,” the company said.
Hyundai added, “We will continue to take meaningful action to support our customers and ensure peace of mind.”
Key Takeaways
- Hyundai and Kia will spend over $500 million on free repairs and install engine immobilizers.
- About 9 million vehicles sold from 2011‑2022 are eligible for the fix.
- The settlement follows a TikTok‑fueled theft surge and a 836% rise in Minneapolis thefts.
The announcement underscores how a social media trend can expose a security flaw that endangers millions of drivers.
Closing
The settlement, announced by Minnesota’s attorney general, is a landmark move to protect consumers and curb a growing wave of car thefts that have cost owners and insurers millions. The automakers’ commitment to installing new security measures and providing free repairs marks a significant step toward restoring confidence in Hyundai and Kia vehicles.
