Hyundai, Kia Resolve Class Action Lawsuit Brought in Response To Vehicle Thefts

Hyundai Motor America and Kia America, Inc. on May 18 announced they have entered into an agreement to resolve class action litigation with owners of certain Hyundai and Kia vehicles without push-button ignitions and immobilizing anti-theft devices.

The agreement, which could be valued at approximately $200 million depending on how many customers elect to participate, will provide cash compensation for customers who incurred theftrelated vehicle losses or damage not covered by insurance, in addition to reimbursement for insurance deductibles, increased insurance premiums and other theft-related losses.

As part of this settlement, the software upgrade will be automatically installed in conjunction with any service or maintenance appointment that brings the owner of an eligible vehicle into the dealership.

For the subset of customers whose vehicles cannot accommodate the software upgrade, the agreement will provide reimbursement up to $300 for the purchase of various antitheft devices. Hyundai and Kia have also provided consumers with tens of thousands of free steering wheel locks, either through local law enforcement or through direct shipment to impacted owners.

The settlement includes approximately 9 million Hyundai and Kia vehicles.

The court is expected to review the proposed settlement of the matter for preliminary approval in July. Notices will be sent to individual class members following final approval and pursuant to the terms of the settlement.

Background

Thefts of Hyundai and Kia vehicles spiked in the summer of 2022 in response to videos posted by car thieves on TikTok and other social media channels in what became known as the “Kia Challenge.” In these videos, thieves documented and promoted a specific method by which to bypass the vehicles’ security features, dismantle their steering columns and create direct access to their ignitions and challenged others to copycat their crimes. Hyundai and Kia have urged TikTok and others to have the illicit content removed in accordance with the platforms’ terms of service and community standards.

Approximately 9 million 20112022 model year Hyundai and Kia vehicles on the road in the U.S. today—primarily “base trim” or entry-level models, which are not equipped with pushbutton ignitions and immobilizing anti-theft devices—are or were susceptible to these social mediapromoted thefts. While Hyundai and Kia believe these vehicles are fully compliant with federal antitheft requirements, Hyundai and Kia have taken action to support the security of customers, and this agreement represents the latest step.

Earlier this year, Hyundai and Kia introduced a free anti-theft software upgrade for affected customers. To date, Kia has notified more than 3 million owners and lessees of these vehicle models— covering more than 96% of eligible vehicles—that they are eligible to receive the software upgrade and expects to notify all upgradeeligible customers by the end of May. Kia owners can find more information at ksupport.kiausa. com/ConsumerAffairs/SWLD.

All affected Hyundai vehicles are eligible for the upgrade as of April. Hyundai has notified the majority of these customers, with the remainder to be completed by month-end and is leveraging targeted paid digital media to drive affected customers to HyundaiAntiTheft.com for scheduling and more information.

The free anti-theft software upgrade modifies certain vehicle control modules on Hyundai and Kia vehicles equipped with standard “turn-key-to-start” ignition systems to include an “ignition kill” feature so the vehicles cannot be started when subjected to the method of theft 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.

Source: Hyundai Motor America

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Production of the Chevrolet Bolt EV and Bolt EUV electric cars at the plant in Orion Township, MI, will come to an end in late 2023, General Motors CEO Mary Barra announced during the company’s first-quarter earnings call.

According to the plan, through an investment of around $4 billion, the site will be prepared for all-new Ultium models— specifically the Chevrolet Silverado EV and GMC Sierra, all-electric pickups. Those new models are expected to enter production at the plant in 2024.

The good news for the plant is the overall EV production will increase. Employment is promised to triple next year. With another plant engaged in the Ultium platform, GM would like to increase its manufacturing output to 600,000 units annually—all BEV models.

On the other hand, in the short-term, consumers might lose access to a really affordable all-electric car. The starting price for the Bolt EV was just $26,500, and effectively less than $20,000 when deducting the federal tax credit.

This year, Chevrolet will launch two new Ultium-based electric cars, the Blazer EV this summer and the Equinox EV this fall, which will be the new entry-level BEVs from the brand. Those nextgeneration electric models are expected to be better in every way—bigger, with more range, power and features as well as faster charging—but probably also a slightly higher price point of around $30,000 for the base version.

The Chevrolet Bolt EV, later joined by the Bolt EUV version, was introduced in the U.S. in 2016. Since then, more than 161,000 have been sold. The Bolt EV/EUV achieved a huge sales record of 19,700 units in the first quarter of 2023. The target production and sales rate is 70,000 units per year globally, mostly in the U.S.