Hyundai And Kia To Pay $200 Million Settlement Due To TikTok Inspired Car Thefts

[Kiaclub Nieuwsrobot]

Hyundai and Kia are settling big.

TikTok is more than just a medium to look at the coolest new dances and fashion trends presented by people you’ve probably never heard of. Unfortunately, a series of viral TikToks exposed that a shocking amount of Hyundai and Kia vehicles can be stolen very easily. This information spread like wildfire, resulting in a rash of ongoing thefts that have displeased insurance companies, municipalities, and customers alike. Hyundai and Kia are settling; the brand will shell out $200 million because of the thefts.

This settlement should cover the nine million drivers affected by the thefts, with $145 million earmarked for out-of-pocket losses for owners who had their vehicles stolen. Hyundai and Kia will compensate those owners who incurred deductible issues, increased premiums, and other insurance issues related to the theft of their vehicles. This settlement covers certain Hyundai and Kia models from 2011 to 2022.

In February 2023, the brands agreed to update the software of 8.3 million vehicles to mitigate theft issues. However, that won’t work for every vehicle. If the vehicle is incompatible with the update, the two brands are giving up to $300 for a club-style steering interlock device. 

These thefts have been a serious black eye for the brand. Insurance companies have reportedly refused to insure some models in certain cities, and videos of stolen Hyundai and Kias being driven recklessly have inundated social media in recent weeks. However, because all Canadian Hyundai and Kia vehicles come standard with immobilizers, the rash of thefts has remained mostly a U.S. problem. Will this settlement be enough to placate owners and reduce thefts? We will have to wait and see.

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