A security issue that gave rise to the “Kia Boys” carjacking phenomenon has now resulted in a settlement that requires Hyundai and Kia to fix the issue. It also includes up to $4.5 million in restitution to eligible consumers who had cars damaged by thieves.
They are also expected to pay states up to $4.5 million for investigation costs, Costs to fix the security issue are estimates to be upwards of $500 million, according to the office of Minnesota Attorney General Keith Ellison.
In a press release, the office said that “Hyundai and Kia’s knowing failure to include industry-standard anti-theft technology created conditions for epidemic of car thefts in Minnesota and across U.S.” Audacy reported on the uptick in carjackings back in 2022.
Many carjackers targeted Kia and Hyundai vehicles after they realized that these vehicles often (millions of vehicles) did not include anti-theft “engine-immobilizer” technology. This technology “prevents thieves from starting a vehicle’s engine without the vehicle’s ‘smart’ key, which stores the vehicle’s electronic security code,” the attorney general’s office explained.
“For example, according to one report, in 2015, only 26% of the vehicles Kia and Hyundai sold in the United States were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers,” it said.
Without these immobilizers, the Hyundai and Kia vehicles “lagged behind industry standards,” the office added. It also said it made them a target for carjackings, especially after a simple way to access the ignition cylinders went viral online and sparked a dramatic increase in carjackings. Minneapolis alone saw an 836% increase in carjackings from 2021 to 2022 and St. Paul saw an 611% increase. In 2022 30.5% of all vehicles carjacked were Hyundais or Kias, compared to 5% in 2021.
“This dramatic increase is attributable to viral social-media videos by the Kia Boys, a group of young people who showed how easy it is to steal Kias and Hyundais,” said the attorney general’s office. “The Kia Boys also started a trend of young people stealing vehicles to gain social status and social capital.”
Some of these thefts turned fatal. In response to the crimes, Ellison announced an investigation into the Korea-based carmakers in March 2023. He also led a “bipartisan coalition of 35 attorneys general in pressing Hyundai and Kia to do more to protect consumers.”
“Minnesota was the first state to investigate Kia and Hyundai’s knowing failure to act, and I’m proud to have led this bipartisan coalition of states in reaching this significant nationwide settlement,” said Ellison. “It shows once again that in addition to holding individual offenders accountable for criminal acts in the criminal-justice system, attorneys general can use their broad authority in civil law to hold corporations accountable for upstream actions or inactions that harm the safety of the public.”
In 2023, Hyundai and Kia also launched a service campaign to update the software on many affected vehicles. Both manufacturers offered to install a zinc-reinforced ignition cylinder protector. However, they only offered the latter for a portion of the potentially impacted vehicles.
“While the companies claimed that the software update blocked the viral theft method, the states alleged that thieves could, and often did, bypass the software update to continue stealing these cars,” said Ellison’s office.
With the new settlement, free zinc-reinforced ignition cylinder protectors have been secured for all affected vehicles, including those that already received the software update. Eligible consumers should expect to receive a notice about this fix early next year. They will have one year to confirm their receipt and make an appointment for the fix at their Hyundai or Kia dealers, and Ellison recommends scheduling installation as soon as possible.
“The manufacturer’s lack of urgency and their desire to save money inexcusably prolonged this crisis,” said Minneapolis Police Chief Brian O’Hara. “Today’s settlement is a significant step forward and reflects what Kia and Hyundai should have done years ago.”
A list of the makes and model years of vehicles eligible for installation of the ignition cylinders is available here and here – they include all Model Year 2011-2022 Hyundai and Kia vehicles that were not factory-equipped with Engine Immobilizers. Information for how consumers who had the software fix can submit claims, visit www.HKMultistateImmobilizerSettlement.com.