AG Tong announces consumer protection investigation into Hyundai and Kia

Attorney General William Tong said he has launched a consumer protection investigation into Hyundai and Kia after hundreds of the vehicles have been stolen across the country.

Officials said thieves took advantage of the fact that the cars didn't have anti-theft technology, which is supposed to be an industry standard.

Back in May, Kia and Hyundai cars were stolen from parking lots at Westfarms and Buckland Hills. Before that, 13 Hyundai cars and two Kias were stolen in Hamden in December.

It was spurred by viral TikTok videos where young thieves filmed themselves stealing and joyriding in Kias and Hyundais. They used USB cables to hot wire the cars.

“We have called on Hyundai and Kia over and over again to make this right and address the glaring public safety vulnerabilities in their vehicles. Whatever they have done to date is clearly not working. We’ve got viral videos all over the internet teaching kids how to hotwire these cars in a matter of seconds and glorifying reckless driving that has resulted in injuries and multiple deaths nationwide," Tong said in a statement.

Thieves specifically targeted certain 2010-2021 Kia and Hyundai vehicles that use a mechanical key, not a key fob or push start button.

It has led to a huge spike in car thefts of certain models like in Chicago where it increased 800%.

"These cars are such sitting ducks that some insurers are reportedly now refusing to insure them, rendering them essentially undriveable. I’ve launched this investigation to force Hyundai and Kia to disclose every discussion and decision leading up to the sale of these theft-prone cars, as well as the costs and analysis of potential fixes. We are going to figure out exactly how this public safety threat came to be, and we will not hesitate to hold Hyundai and Kia fully accountable for addressing this disaster,” the statement from Tong goes on to say.

Hyundai Motor America released a statement in response to the attorney general's announcement.

"Hyundai Motor America is committed to ensuring the quality and integrity of our products. A subset of Hyundai vehicles on the road in the U.S. today – primarily “base trim” or entry-level models – are not equipped with push-button ignitions and immobilizing anti-theft devices. It is important to clarify that an engine immobilizer is an anti-theft device and these vehicles are fully compliant with federal anti-theft requirements. Thieves discovered a specific method by which to bypass the vehicles’ security features and then documented and promoted their exploits on TikTok and other social media channels," the company said in a statement.

"In response, Hyundai has taken comprehensive action to assist our customers, including: (1) Made engine immobilizers standard on all vehicles produced as of November 2021; (2) Developed a software upgrade to equip these vehicles with an “ignition kill” feature designed to prevent the popularized method of theft; (3) Rolled out the free anti-theft software upgrade to all of the nearly 4 million vehicles involved – two months ahead of the original schedule – through a service campaign to affected customers who own or lease model year 2011-2022 vehicles; (4) Launched a dedicated website HyundaiAntiTheft.com, toll-free number (888) 498-0390 and digital advertising to generate awareness of the software upgrade, help customers determine their eligibility, and schedule an appointment at their local Hyundai dealership; (5) Initiated a program to reimburse affected customers for their purchase of steering wheel locks, including for a smaller group of 2011-2022 model year vehicles that cannot accommodate the software upgrade; (6) Established a program to provide free steering wheel locks to law enforcement agencies across the country for distribution to local residents who own or lease the affected vehicles; (7) Collaborated with AAA insurers on a program to offer insurance options for affected owners and lessees. As part of this collaboration, AAA insurers will issue new and renewal policies for eligible affected Hyundai customers. The program will be available in all states with the exception of those states where AAA does not offer insurance. (e.g., Alaska, , Massachusetts, Washington)." the statement goes on to say.

Kia America also released a statement.

"“Contrary to the Attorney General’s claims today, Kia has taken and continues to take action to help our customers by making it more difficult for criminals to use methods of theft popularized on social media to steal certain vehicle models. In addition to announcing an agreement last month that will allow customers who have been impacted by vehicle thefts to receive additional benefits, Kia has notified all eligible owners and lessees of these vehicle models – over 3 million total – that they are now able to receive the free security software upgrade that we have developed. More than 418,000 customers nationwide have already received the upgrade, which is designed to restrict the operation of the vehicle’s ignition system should a potential criminal attempt to steal a locked vehicle without the key, and reports from the field indicate that the upgrade is working as designed. We have established a dedicated website within the Kia’s Owner’s portal where eligible owners can learn more about how to receive the free upgrade: https://ksupport.kiausa.com/ConsumerAffairs/SWLD," the statement from Kia America says.

In February, Hyundai and Kia rolled out software updates for vehicles to combat thefts.

In April, Attorneys General from 17 states including Connecticut called on the federal government to issue a recall of these specific vehicles.

In May, a class action settlement was reached of about $200 million that covers 8 million cars and owners who are affected by the trend. A judge has to approve the settlement next month.

Hyundai said it is committed to "continuing our efforts in completing the software upgrade for all affected vehicles in the most effective manner possible. We are communicating with NHTSA on our many actions to assist our customers."

Kia said it continues "to provide steering wheel locks to owners of impacted vehicles that are not eligible for the software upgrade at no cost to them."

The company said customers can obtain free, Kia-provided locks through their local law enforcement, or they can request a steering wheel lock from Kia directly through its dedicated website.

The company went on to say that every Kia model includes a "number of mechanisms designed to guard against theft and all Kia vehicles, including the specific models at issue here, are subject to and comply fully with the requirements outlined in applicable Federal Motor Vehicle Safety Standards, including FMVSS 114 that governs theft protection measures. Furthermore, because these vehicles comply with all federal standards and because there is no defect in their security features, a recall in this situation is neither appropriate nor necessary under federal law."

Another old school method to prevent your car from being stolen is to use one of those steering wheel locks. Police departments in Connecticut were handing them out.