2023-05-19 15:43:46
Hyundai Group has settled a $200 million class action lawsuit related to auto thefts that have rampant in Milwaukee and other cities.
A statement from the companies states that they will provide cash compensation to customers who suffered loss or damage to the vehicle related to theft that is not covered by insurance, in addition to reimbursement of insurance deductibles, increased premiums for insurance and other losses related to theft.
“We welcome the opportunity to provide additional support to our owners who have been impacted by the increasing and persistent criminal activity targeting our vehicles,” Jason Erb, Hyundai Motor North America chief legal officer, said in a press release.
“Customer safety remains a top priority, and we are committed to continuing to install software updates and distribute steering wheel locks to help prevent theft and offer insurance options through AAA for those who have experienced difficulties. to obtain and maintain coverage.
The deal comes as a result of a high rate of theft by Kia and Hyundai in the cities that began in Milwaukee. It is known on TikTok as Kia Challenge.
Videos posted showed the “Kia Boys” demonstrating how to steal the vehicles using a USB charging cable or another metal object to jump start the engine.
The reason this worked was because the cars lacked immobilizers and had design flaws that allowed the cars to be easily stolen.
A group of 23 attorneys general led by Wisconsin’s Josh Kaul wrote a letter in March to Kia and Hyundai urging them to more quickly address the nationwide auto theft epidemic affecting their customers.
Car manufacturers have also introduced a free anti-theft software update for affected customers.
The free anti-theft software update modifies certain vehicle control modules on Hyundai and Kia vehicles equipped with standard “turnkey to start” ignition systems to include an “ignition kill” feature so the vehicles cannot be started when they submit to the robbery method popularized on TikTok and other social media channels.
All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment, according to the press release.
Here’s what the $200 million deal covers, which covers a wide range of areas:
Additionally, there is $145 million set for out-of-pocket losses, such as total loss of vehicle up to $6,125, loss of personal property up to $3,375, insurance-related expenses, and payments for car rentals, taxis, rideshares, public transportation, transit, and other payments not covered. for the insurance.
The settlement will also reimburse affected owners for towing costs, as well as other fees and taxes associated with replacement vehicles, if the affected car is lost or stolen.
It also covers payments for collisions, cars that were not recovered, and tickets and fines incurred during the theft.
In total, the agreement covers regarding 9 million American car owners. There is no news regarding the owners of Canada and Mexico
As part of this agreement, the software update that helps prevent theft of these vehicles will be automatically installed along with any service or maintenance appointment that an eligible vehicle owner brings to the dealership, according to the press release.
For customers whose vehicles cannot accommodate the software update, the agreement includes a rebate of up to $300 for the purchase of multiple anti-theft devices.
Hyundai and Kia said they would also offer tens of thousands of steering wheel locks via police or drop shipping to affected owners.
These are the vehicles that are covered in the agreement:
Hyundai vehicles:
2011-2022 Accent
2011-2022 Elantra
2013-2017 Elantra GT
2013-2014 Elantra Cup
2011-2012 Elantra Touring
2011-2014 Genesis Coupe
2018-2022 Kona
2020-2021 Palisade
2011-2012, 2019-2022 Santa Fe
2013-2018, 2019 Santa Fe and Santa Fe XL
2013-2018 Santa Fe Sport
2011-2019 Sonata
2011-2022 Tucson
2012-2017, 2019-2021 Veloster
2020-2021 Venue
2011-2012 Veracruz
Kia vehicles:
2011-2021 Forte
2021-2022 K5
2011-2020 Optima
2011-2021 Rio
2011-2021 Sedona
2021-2022 Seltos
2010-2022 Soul
2011-2022 Sorento
2011-2022 Sportage
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