On Tuesday, December 16th, South Korean car manufacturers Hyundai and Kia agreed to recall over 4 million cars in the United States to address theft issues. These two companies will also install anti-theft devices on all new vehicles, in response to an investigation initiated by a bipartisan alliance of 35 state attorneys general.
According to Reuters, state attorneys general stated that these two car manufacturers will provide free zinc alloy reinforced ignition lock cylinder protection devices for eligible vehicles’ owners, including those that previously only met the company’s software update criteria. They also agreed to equip all future American vehicles with engine anti-theft technology to help curb car theft.
In 2023, U.S. regulatory agencies reported that demonstrations on TikTok on how to steal cars without one-touch start and anti-theft devices have led to at least 14 traffic accidents and 8 deaths in the United States.
The FBI’s annual crime report released in October 2023 showed that in 2022, there were a total of 721,852 car theft cases across the United States, higher than the 601,453 incidents in 2021 and the 420,952 incidents reported during the 2020 pandemic outbreak.
At the time, citing industry organization Highway Loss Data Institute (HLDI) tracking insurance statistics data, CNN reported that from the first half of 2020 to the first half of 2023, insurance claims for theft increased by over 1000% for vulnerable Hyundai and Kia cars.
The theft method involved using the metal tip of a USB data cable to start the car, a technique that spread through social media, particularly TikTok. Since June 2022, a “carjacking tutorial” video went viral on TikTok, demonstrating how the uploader could start Hyundai and Kia cars without keys using only a USB data cable, then drive away with the vehicle. The widespread dissemination of “car theft crime games” through TikTok and other social media platforms followed.
Hyundai and Kia operate independently in the United States, but Hyundai Motor Group owns a significant portion of Kia’s shares, and the various car models of Hyundai and Kia share most of the engineering technology. Newer models are less susceptible to theft.
Hyundai and Kia will also pay up to $90 million in compensation to consumers and states to cover investigation costs. Keith Ellison, Attorney General of Minnesota, stated that according to the car manufacturers’ estimates, the cost of installing ignition lock cylinder protection devices for all eligible vehicles could exceed $500 million.
Ellison said, “By failing to equip their vehicles with industry-standard anti-theft technology, Hyundai and Kia triggered a wave of car thefts, causing Minnesota residents to lose their cars, hard-earned money, and sometimes even their lives.”
Hyundai Motors stated that resolving this investigation was another step in addressing theft issues involving certain vehicles without engine anti-theft devices from 2011 to 2022.
“This collaborative agreement is built on Hyundai Motor’s efforts to enhance vehicle security by addressing the popular theft methods on social media,” said Hyundai Motors.
Kia stated that the agreement “is the latest measure taken by Kia to support affected customers.” The company mentioned that the zinc alloy sleeve hardware modification can “reinforce the ignition lock cylinder body and prevent it from being disassembled” to combat prevalent theft methods on social media.
Eligible consumers will receive notifications in early 2026 and can have the ignition lock cylinder protection device installed at local dealers by the end of March 2027.
In 2023, Hyundai and Kia reached a $200 million settlement in a joint consumer class action lawsuit due to frequent car theft cases involving the vehicles of these two South Korean car manufacturers. That same year, these two car manufacturers also provided software upgrade services for 8.3 million U.S. vehicles without anti-theft systems.