USA: Hyundai & Kia agrees to $200 million lawsuit settlement over vehicle thefts

RahulNagaraj · 22nd May 2023, 12:11

Last year, a video on social media went viral, demonstrating how easy it was to steal certain 2011-2012 produced Hyundai & Kia vehicles.

The video led to multiple problems for the two Korean carmakers, from various insurance companies refusing to cover the specific models, to a class-action lawsuit from owners with affected cars. Hyundai and Kia rolled out a number of updates to the specified models, to address the issue and prevent theft.

USA: Hyundai & Kia agrees to 0 million lawsuit settlement over vehicle thefts-kiastinger.jpeg

Now, both Hyundai & Kia have agreed to a consumer class-action lawsuit settlement of over $200 million. As per lawyers, the settlement covers 9 million owners in the USA and up to $145 million for losses for customers whose cars were stolen. As a result of the lawsuit, owners who experienced a total loss of their vehicle might be entitled to receive up to $6,125; while vehicle owners who experienced car and personal property damage could get around $3,375.

Lawyers also stated owners could be reimbursed for, "insurance-related expenses and other related expenses including car rental, taxi costs, ride share costs or public transit payments not otherwise covered by insurance."

While Hyundai and Kia rolled out software updates, not all models were eligible. Hence, in case a vehicle cannot receive a software update, then both brands will provide up to $300 towards the purchase of steering wheel locks and other theft deterrents.

Source: Autoblog

Link to Team-BHP news

theflyingguy · 22nd May 2023, 12:45

That's the power of social media. Bunch of few kids with access to social media exposed a corporate greed and caused damage of over $200 million to the company.

This should serve as a lesson to corporates that balance of power has shifted. They are no longer in control of narrative 100% of the times & need to be realistic to ensure a clean corporate image.

fiat_tarun · 22nd May 2023, 14:08

I saw some Youtube videos of how these Hyundai's and Kia's were stolen and it was crazy how easy it was ! I am really surprised Hyundai-Kia removed engine immobilisers in such a strong consumer rights market such as the US.

This the perfect example of the saying 'penny wise pound foolish' and serves them right ! How I wish we had such strong consumer protection laws in India - hopefully one day

22nd May 2023, 12:11	#1
RahulNagaraj Senior - BHPian Join Date: Mar 2021 Location: Bangalore Posts: 2,128 Thanked: 20,690 Times	USA: Hyundai & Kia agrees to $200 million lawsuit settlement over vehicle thefts Last year, a video on social media went viral, demonstrating how easy it was to steal certain 2011-2012 produced Hyundai & Kia vehicles. The video led to multiple problems for the two Korean carmakers, from various insurance companies refusing to cover the specific models, to a class-action lawsuit from owners with affected cars. Hyundai and Kia rolled out a number of updates to the specified models, to address the issue and prevent theft. Now, both Hyundai & Kia have agreed to a consumer class-action lawsuit settlement of over $200 million. As per lawyers, the settlement covers 9 million owners in the USA and up to $145 million for losses for customers whose cars were stolen. As a result of the lawsuit, owners who experienced a total loss of their vehicle might be entitled to receive up to $6,125; while vehicle owners who experienced car and personal property damage could get around $3,375. Lawyers also stated owners could be reimbursed for, "insurance-related expenses and other related expenses including car rental, taxi costs, ride share costs or public transit payments not otherwise covered by insurance." While Hyundai and Kia rolled out software updates, not all models were eligible. Hence, in case a vehicle cannot receive a software update, then both brands will provide up to $300 towards the purchase of steering wheel locks and other theft deterrents. Source: Autoblog Link to Team-BHP news Last edited by RahulNagaraj : 22nd May 2023 at 12:13.
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22nd May 2023, 12:45	#2
theflyingguy BHPian Join Date: Jul 2019 Location: Dubai Posts: 57 Thanked: 353 Times	Re: USA: Hyundai & Kia agrees to $200 million lawsuit settlement over vehicle thefts That's the power of social media. Bunch of few kids with access to social media exposed a corporate greed and caused damage of over $200 million to the company. This should serve as a lesson to corporates that balance of power has shifted. They are no longer in control of narrative 100% of the times & need to be realistic to ensure a clean corporate image.
	(5) Thanks

22nd May 2023, 14:08	#3
fiat_tarun Senior - BHPian Join Date: Jan 2010 Location: Pune / Mysore Posts: 1,934 Thanked: 3,769 Times View My Garage	Re: USA: Hyundai & Kia agrees to $200 million lawsuit settlement over vehicle thefts I saw some Youtube videos of how these Hyundai's and Kia's were stolen and it was crazy how easy it was ! I am really surprised Hyundai-Kia removed engine immobilisers in such a strong consumer rights market such as the US. This the perfect example of the saying 'penny wise pound foolish' and serves them right ! How I wish we had such strong consumer protection laws in India - hopefully one day
	(3) Thanks