Hyundai Motor and Kia Corporation have agreed to a consumer class-action lawsuit settlement worth $US200 million ($300 million) over rampant car thefts.
Key points:
- The settlement covers about 9 million US owners
- The settlement includes up to $US145 million for out-of-pocket losses for consumers who had cars stolen
- TikTok videos showing how to steal cars without push-button ignitions and immobilising anti-theft devices have led to 14 reported crashes and eight fatalities, regulators say
Lawyers for owners of the Korean automakers’ vehicles made the decision on Thursday.
In February, the Korean automakers said they would offer software upgrades to 8.3 million US vehicles without anti-theft immobilisers to help curb increasing car thefts using a method popularised on TikTok and other social media channels.
The settlement covers about 9 million US owners and includes up to $US145 million for out-of-pocket losses for consumers who had cars stolen, lawyers for the owners said.
Hyundai and Kia said they would compensate owners “who incurred theft-related vehicle losses or damage in addition to reimbursement for insurance deductibles, increased insurance premiums, and other theft related losses”.
For customers whose vehicles cannot accommodate security software upgrades, the Korean automakers will provide up to $US300 for the purchase of steering wheel locks and other theft deterrent or prevention devices.
“The settlement will provide benefits as soon as possible to those who have suffered out-of-pocket losses,” a lawyer who represented the owners said.
TikTok videos showing how to steal cars without push-button ignitions and immobilising anti-theft devices have led to at least 14 reported crashes and eight fatalities in the United States, regulators said in February.
The consumer settlement covers owners of 2011 through 2022 model year Hyundai or Kia vehicles with a traditional “insert-and-turn” steel key ignition system. It includes payments for total loss of vehicles up to $US6,125 damage to vehicle and personal property up to $US3,375 and insurance-related expenses.
Other related expenses including car rental, taxi or other transportation costs not covered by insurance are also included in the settlement.
Owners can get reimbursed for towing costs and for stolen vehicles that suffered crashes or were never recovered, as well as payments for tickets or other penalties or fines incurred arising from a stolen vehicle.
Reuters