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Kia and Hyundai Agree To $200 Million Settlement for Making Cars Viral Theft Targets 52

Posted by msmash from the how-about-that dept.
Hyundai and Kia will pay out $200 million in a class-action lawsuit settlement, compensating roughly 9 million people for their losses after a 2022 social media trend revealed how relatively simple it was to steal certain models. From a report: As reported by Reuters, $145 million of the payout goes to the out-of-pocket expenses of those whose cars were stolen. Many Kias made between 2011-2021, and Hyundais from 2015-2021, lacked electronic engine immobilizers, which would prevent a car from starting unless an electronically matched key was present. Without the immobilizer, the car could be started by turning the ignition with other objects, such as a USB-A cable that thieves discovered was a perfect fit.

Customers whose cars were totaled are eligible for up to $6,125, while damaged vehicles and property can receive a maximum of $3,375, along with costs for raised insurance, car rental, towing, tickets, and others. Kia and Hyundai had previously pledged to provide free software upgrades to vehicles and free wheel locks (i.e. The Club), typically in coordination with regional police departments. The National Highway Traffic Safety Administration said in February that the companies have given out 26,000 wheel locks since November 2022. A September 2022 report by the Insurance Institute for Highway Safety (IIHS) showed that immobilizers were standard on 96 percent of cars sold in the US by 2015 but only 26 percent of Kias and Hyundais. Cars with immobilizers were stolen at a rate of 1.21 per 1,000 insured vehicles, according to the IIHS; those without immobilizers had a 2.18 per 1,000 rate. Kia and Hyundai's far-too-thrifty design decisions might have been simply a balance sheet story were it not for the "Kia Challenge," a 2022 TikTok trend that detailed theft techniques and joyrides. By February 2023, the National Highway Traffic Safety Administration attributed 14 crashes and eight deaths to challenge-inspired thefts.
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Kia and Hyundai Agree To $200 Million Settlement for Making Cars Viral Theft Targets More

Kia and Hyundai Agree To $200 Million Settlement for Making Cars Viral Theft Targets

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  • Thatâ(TM)s fair (Score:4, Insightful)

    by dhrabarchuk ( 1745930 ) on Friday May 19, 2023 @03:14PM (#63535647)
    6K for a totalled car. How is that even close to replacement value. What was the benchmark used?
    • The settlement reached was not for a replacement of the car. Im sure the owners were also paid some $$ by their insurance companies before they caught wind of the issue. Apparently not many insurance providers will even insure these cars, and if they do, the premium went up huge (according to a friend who owns one)

    • Re: (Score:3)

      by aitikin ( 909209 )

      My understanding (from other stories I've heard on the topic) was that it was the baseline models of these manufacturer's vehicles that were most susceptible. As such, $6K could be more than some of these vehicles total value (although TFS says, "Up to," so those probably would get $2k). If the owner had full coverage, they were already made whole by their insurance, so this is above and beyond.

      Is it enough, not in my opinion, but, I'll probably never own a Hyundai/Kia product. I cannot stand how they fe

      • I used to drive a 2008 Elantra. Crashed it pretty hard into a guardrail when I was going too fast around a turn. Even after hitting the brakes I was probably still moving 40 mph on impact, enough that the car spun completely around, damaging the majority of body panels bad enough to need replacing. The passenger door wouldn't open anymore, the wheels were so bent I had to keep the wheel at a quarter-turn in order for the car to stay straight. But it cranked right back up, and drove home. I drove it for anot

        • Re: (Score:2)

          by aitikin ( 909209 )
          I had a roommate in '09 that had an '03 Hyundai that lasted well over 250k miles, but I don't know how long it lasted, years wise. My two friends who have gotten into accidents in Hyundais in recent memory were both driving newer ones (the older being a 2013, the newer a 2016) and both being totaled in what I would consider a fender bender 20 years ago.
    • People area always saying what they want is a new 1980's Toyota that weighs 1500 lbs and doesn't have all the electronic junk. Well, they got it, and they got it good and cheap. But there's no free lunch.

    • If they were to immediately fix the damned locks, this wouldn't have happened nearly as much. Blame the slow court system, and the financial incentive for Kia to sit on this forever and throw up their hands in the air and say "oh well!" LOL.

      There is nobody that can be blamed, obviously. Not any manager giving the OK to the engineer's crappy lock design. Not any CEO that approved that manager's decision. It's all entirely blameless, obviously, LOL.

  • > Without the immobilizer, the car could be started by
    > turning the ignition with other objects, such as a
    > USB-A cable that thieves discovered was a perfect
    > fit.

    Oh? Or maybe a small key-shaped piece of metal like... say... a key? Did engine immobilizers and smart keys become a legally-mandated standard at some point and Hyundai/Kia just up and decided to ignore the law? Because it wasn't too long ago that we could all start our cars with a $2 hunk of metal that any hardware store could cut

    • > Without the immobilizer, the car could be started by > turning the ignition with other objects, such as a > USB-A cable that thieves discovered was a perfect > fit.

      Oh? Or maybe a small key-shaped piece of metal like... say... a key? Did engine immobilizers and smart keys become a legally-mandated standard at some point and Hyundai/Kia just up and decided to ignore the law? Because it wasn't too long ago that we could all start our cars with a $2 hunk of metal that any hardware store could cut versus these $100+ smart keys that the dealer has to program first. And considering the lifespan of Japanese and German cars and how quickly Korea has been catching up; there are no doubt plenty of cars still on the road with old-school tumbler lock key ignitions.

      My current car uses a smart key. It comes with a slide-out emergency key in case the battery on one side or the other has died. It's cut differently than an old-school key. But it's still a cut key. Does Hyundai not do that? Because even without the engine cut off, it should still be necessary to insert and turn the correct key.

      That emergency key cannot start the car. That's just to open the doors/trunk if the car battery is dead, so you can open the hood and jump the battery.

      The fob itself can still start the car if the battery in it is dead, by placing it a certain place in the car, (usually at the bottom of the center console, at least in Fords), and then the car will start.

      • If the battery is dead the key fobs are useless. Once you apply energy to the electrical system, the key fobs can be read by the rfid reader. Doesnâ(TM)t matter where in the car you place them (in fords that area you described is how the MyKey is programmed and the location of the rfid reader)

        • I think they meant the key fob battery being dead, not that cars battery.

          Cars usually have a spot that you can hold the keyfob against and it'll wirelessly provide power to let you start the car. It won't charge the fobs battery, but it'll let you start the car. BMW's have it on that steering column right side. They have a little icon. BMW's also hide the doors physical key cylinder behind the plastic handle, when you take the physical key out of the fob there is spot under the handle that you put the key i

    • Re:An object... like a key? (Score:5, Informative)

      by EvilSS ( 557649 ) on Friday May 19, 2023 @03:30PM (#63535683)

      Oh? Or maybe a small key-shaped piece of metal like... say... a key?

      These cars all use dumb keys; that's the problem. Pop the cover on the column, pry out the lock cylinder, and use the end of a USB cable to turn the ignition. https://youtu.be/bTeVgfPM0Xw?t... [youtu.be]

      • KIA's and Hyundai's interiors come in two levels - key start and push-button start. The versions with push-button start do not have this security problem. The keyfob is required to start the car and there is no ignition switch to physically manipulate.

        The problem described only affects the key-start interiors. The keyfob for these vehicles has a metal key that springs out of the side of the fob like a switchblade when a release button on the fob is pressed. This metal key is inserted into the ignition s

    • The new models have remote start, so the remote fob is all you get with an emergency metal key to open the doors. No physical key required to start the car.
      • Yea, I don't know why people aren't commenting to that reality. There are videos of dudes walking by a car or SUV, then a few minutes later walking back up to it, opening the door, and immediately driving off like it was their car.

    • Re: (Score:3)

      by Ecuador ( 740021 )

      Did engine immobilizers and smart keys become a legally-mandated standard at some point and Hyundai/Kia just up and decided to ignore the law?

      Interestingly, they have been a legally mandated standard in most of the rest of the worlds. In Europe they have been standard since the 90s (e.g. they became compulsory in England in 1998). I had never heard of a modern car without an immobiliser (I live in Europe) until I started reading about this Kia/Hyundai thing. Really unheard off. And every other manufacturer seems to do the obvious thing and include immobilizers in the US as standard, they don't try to skip them just because they can. It's a bit li

      • Well, everyone knows how superior Europe is, especially in comparison with those backward fools in America who put ice in their drinks and stuff....

    • Kia and Hyundai just started using immobilizers on all vehicles in 2022.

      Most manufacturers were doing this back in the 1990s.

      These vehicles are now the primary targets for auto theft, and have led to a large increase in such.

      They will be targets until they are off the road.

      • Kia and Hyundai just started using immobilizers on all vehicles in 2022.

        Most manufacturers were doing this back in the 1990s.

        I think you are probably off by a few years. My '97 Voyager didn't have an immobilizer.

      • From the website in my sig... We've had one of our Kia's stolen.

        Here is when some select manufactueres started using key immobilizers:

        Chevrolet â" 1995
        Ford â" 1996
        Honda â" 1998 (their 1997 and before models are popular with thieves!)

    • Re: (Score:2)

      by Burdell ( 228580 )

      Any car with a "classic" key-cylinder ignition switch (and no other immobilizer/kill switch) can have the key part bypassed if you can remove the cylinder and turn the bit behind it. In most cars, this is made to be at least somewhat difficult, but in the affected Kia and Hyundai models, it apparently takes just seconds. You rip the thin plastic cover off, jam a screwdriver in the key hole and wiggle it until the cylinder pops out, and then a USB-A cable happens to fit over the bit behind the cylinder to ma

  • One thing that could have been done was to use something Ravelco's vehicle immobilizer. Yes, it is security through obscurity, but if someone cuts through the metal cable, and then is able to guess which prongs connect to what pogopins, it has done its job as an anti-theft device.

    Cars always didn't have good immobilizers. I have an older car which I have a hidden ignition kill switch (where the lights come on, but the engine wouldn't crank), as well as a fuel pump switch. Yes, the thieves might figure out one, but when the car runs out of gas in the middle of the street, they won't stay with it... and will be on a lot of people's dash cams.

    Then, there are conventional solutions. Yes, the Club is mocked, but there are a number of other fairly fancy ones.

    Of course, none of these are really great solutions, but they do work.

  • This should be an all out recall, retool or refund, at the original price of the car! How Kia and Hyundai can get away with paying affectively nothing, is beyond me. They intentionally, knowingly, and with full will of their actions created a dangerous and liable situation, and yet they're getting let off with a slap on the wrist. This is a total failure of the legal system, period.

    • Oh please. The cars complied with applicable law. Fuck off.

      • That's a terrible argument! The facts are that Kia and Hyundai cut corners with careless, knowing intention, and they should be taken to the cleaners for that. We need to stop allowing the bare minimum as being acceptable. Barely acceptable is not acceptable, period.

        • Fuck that.

          Consumers had a choice. Buy cheap pieces of shit from shit companies, or something better.

          These car companies should not pay a single penny over these claims.

          • They didn't have the choice, which is the problem!

            Were the customers made aware beforehand, that the cars had corners cut, and weren't safe to simple bypass tricks to steal them?

            Were the customers given the option to add in the proper parts?

            Let's see the contracts that clearly, in plain English, spell out the cars had corners cut, the customers accepted all the risk, and did so with knowledge of the issue. If that can all be shown, then fine, the companies didn't strictly do anything wrong, but it

            • Did the customers verify it had an immobilizer feature? No.

              Did the car companies say it had one when it really didn't? No.

              That's pretty much all that matters.

              • If you make a toy for a toddler and don't put a chocking hazard warning on it, then a child chocks, you get into massive legal troubles. If a car is meant to have a feature, doesn't, and you don't tell the customer, it's effectively the same scenario. This is like the insane ruling in Michigan where a shop / garage can start work, not finish it, but they're not held liable. If you drive away and your tires fall off, or your oil filter pops off, you can't sue the shop, because a bunch of buffoons decided

                • All Kia and Hydunia had to do, was tell the customer they cut corners to save a dollar, and ignored the engineers, and so be it.

                  They did, by not listing an immobilizer on the window sticker.

                  All a customer had to do was the MOST BASIC of due diligence - and they didn't.

                  The problem is they didn't, and acted like the cars didn't have a massive defect.

                  Lack of an optional feature is NOT a defect.

                  Pro Tip: allowing people to keep the money they earn is NOT a "subsidy" either.

                  • If a company put substandard breaks on a bunch of cars, and those cars get into accidents injuring people, possibly even killing them, would you have the same attitude? Car companies shouldn't be allowed to take shortcuts, even to save a buck.

                    When you do a job, do you only complete it to the bare and basic standard, or do you make sure it's polished and professional? The argument being made is Kia / Hyundai operated unprofessionally but screw the customer, they should have known better. I doubt we'll ag

                    • If a company put substandard breaks on a bunch of cars, and those cars get into accidents injuring people, possibly even killing them, would you have the same attitude?

                      If the brakes complied with all applicable legal requirements, yes.

                      Car companies shouldn't be allowed to take shortcuts, even to save a buck.

                      What planet are you from?

                      When you do a job, do you only complete it to the bare and basic standard, or do you make sure it's polished and professional?

                      It's entirely circumstantial.

                      The argument being made is Kia / Hyundai operated unprofessionally but screw the customer, they should have known better. I doubt we'll agree with each other.

                      Given that your views are unreasonable, I agree.

                    • They're not unreasonable, I'm simply stating that Kia, Hyundai, and all car companies, should be held to a very high standard. We accept 1/2 done too often, and no one's ever held accountable for screwing off and not finishing the job properly (in most cases). Properly doesn't mean to minimum code or minimum legal requirement, it means to a standard that no reasonable person would second guess or doubt. Minimums exist, so we have a baseline, but if you care at all, you'll never be proud of barely crossing

                    • They are held to what the law requires. If that standard is not good enough, then change the law.

  • The fix (Score:3, Funny)

    by istartedi ( 132515 ) on Friday May 19, 2023 @04:11PM (#63535801) Journal

    This may not work overseas, but in the USA they'll be installing one of these [wikipedia.org].

  • Less than 1/4th the total (Score:3)

    by Turkinolith ( 7180598 ) on Friday May 19, 2023 @06:20PM (#63536043)
    Let's do some napkin math: $6,125 for a totaled car (which isn't the majority) * 9,000,000 = 55.125 million Total. $200,000,000 settlement, so only roughly 1/4th of that is actually going to the people directly affected by this, less actually when you consider that most people don't have a totaled car. The amount of class action totals that is ate up by legal fees is crazy. How is this even remotely fair for those affected?

    • Check your math, dude.

    • Let's do some napkin math: $6,125 for a totaled car (which isn't the majority) * 9,000,000 = 55.125 million Total. $200,000,000 settlement, so only roughly 1/4th of that is actually going to the people directly affected by this,

      I believe you overlooked part of the summary - "As reported by Reuters, $145 million of the payout goes to the out-of-pocket expenses of those whose cars were stolen.... Customers whose cars were totaled are eligible for up to $6,125, while damaged vehicles and property can receive a maximum of $3,375, along with costs for raised insurance, car rental, towing, tickets, and others."

      The amount of class action totals that is ate up by legal fees is crazy. How is this even remotely fair for those affected?

      Because they assume 0% of the risk. There is no guarantee the plaintiffs will prevail in a class action lawsuit. If they don't,

    • Re: (Score:2)

      by Whibla ( 210729 )

      Let's do some napkin math:
      $6,125 for a totaled car (which isn't the majority) * 9,000,000 = 55.125 million Total.

      Let's throw away that napkin, and put it into words: 6 thousand times 9 million = fifty five million...

      I think you misspelled billion

  • Wow (Score:3)

    by crackerjack155 ( 1328815 ) on Friday May 19, 2023 @08:57PM (#63536207)

    The real problem is how easy it is to pop out the lock cylinder out of that lock body and access the actual ignition switch. At that point, you can use pliers or anything shaped like the cam.

    On these cars, you can do it quickly, without damaging the car, and with only a cheap screwdriver multitool.

    You just pop off the plastic molding on the bottom of the steering column, and the button to pop out the lock cylinder is right there.

    In my old car which used keys, you needed to remove basically the entire steering column to reach the cylinder release. You could destructively steal it by doing something like drilling out that cylinder, but that is very noisy, will take longer, and requires you have tools with you

  • Toyota next? (Score:3)

    by sinij ( 911942 ) on Saturday May 20, 2023 @06:57AM (#63536969)
    Kia and Hyundai made especially outrageous security lapses, but the rest of brands are not much better with push-to-start. Specifically, modern Toyota and Lexus are being stolen so frequently that the joke is you don't need to worry about lease turn-in.

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