Kia-Hyundai anti-theft fix is working after years of viral video exposure, study finds

An anti-theft software upgrade that Kia America and Hyundai Motor America developed for vehicles built without a crucial security device has dropped theft rates by more than half, according to research from the Highway Loss Data Institute.

Certain Kia and Hyundai vehicles were targeted by thieves in 2021 after a viral social media video demonstrated how to easily hot wire a Hyundai or Kia without an immobilizer, a technology that prevents the vehicle from being turned on without a key fob present. The number of car thefts surged, starting in Milwaukee, and quickly spread to nearby Chicago and to other regions, including Columbus, Ohio, and Seattle.

Twenty-two 2011-22 Kia and Hyundai models are qualified for the upgrade. The research firm said of the eligible vehicles that were upgraded by December 2023 — 30 percent of the Hyundais and 28 percent of the Kias — had theft claim frequencies 53 percent lower than those that did not receive the upgrade.

Those claims include ones for damage to vehicles that were stolen and recovered, theft of vehicle parts and items stolen from inside the vehicle, according to the research firm.

The frequency of whole vehicle theft fell by a larger 64 percent for vehicles with the upgrade, the research firm said.

Matt Moore, senior vice president of the Highway Loss Data Institute, called the solution "extremely effective" in a statement.

"We're encouraged that theft rates in key cities have fallen significantly as more vehicle owners and lessees receive the free software upgrade," A Kia spokesperson said in a statement.

In 2022, U.S. theft claims were nearly twice as common for Hyundai and Kia vehicles compared with all other manufacturers among 2015-19 vehicles, according to the Insurance Institute for Highway Safety.

A Hyundai spokesperson said in a statement that the automaker "has actively collaborated with law enforcement and public officials including conducting organized multi-day mobile installation clinics in many cities to raise awareness about the importance of vehicle security."

The companies offered the software upgrade in February 2023. Although Kia and Hyundai estimated that 9 million vehicles on the road were vulnerable to the theft, only 7 million — 3.8 million from Hyundai and 3.2 million from Kia — were deemed eligible because they have onboard alarm systems.

The upgrade extends the length of the alarm sound from 30 seconds to one minute and requires the key to be in the ignition switch to turn the vehicle on.

According to Hyundai, more than a million vehicles have received the upgrade to date, and Kia said more than 1.18 million vehicles have been upgraded.

Both companies are providing steering wheel locks to affected customers as needed. Kia said it has distributed 370,000.

Kia said it also introduced a hardware modification for vehicles not eligible for the upgrade that "reinforces the vehicle's ignition cylinder body and prevents its removal through the method of theft promoted in videos."

The chaos triggered several class-action lawsuits across the country seeking monetary damages for owners and a nationwide recall. They were consolidated into a multidistrict litigation in the Central District of California in September 2022. The plaintiffs demanded Hyundai and Kia issue a nationwide recall and damages for related economic losses.

Kia and Hyundai maintained that their vehicles fell within the perimeters of federal rule, specifically FMVSS 114. The rule mandates that a vehicle's starting system include a way to prevent activation of the engine and steering or forward mobility of the vehicle when the key is removed, but it does not specify that immobilizer technology should be used.

According to another HLDI study published in 2021 when the theft became rampant, immobilizers were standard in 62 percent of models from other manufacturers by the 2000 model year. By 2015, 96 percent of other vehicles included them as standard. At that time, only 26 percent of Hyundai and Kia vehicle models included them as standard.

All Hyundai and Kia vehicles produced since November 2021 are equipped with an engine immobilizer as standard equipment, according to the companies.

NHTSA did not push for a recall despite being urged by several parties, including California Attorney General Rob Bonta and a coalition of 18 states.

Attorneys estimated a nationwide recall could have cost about $5 billion.

Safety Research & Strategies, a think tank and advocate for motor vehicle safety, filed a petition to NHTSA requesting the agency to re-examine the decades-old rule in the wake of the thefts.

A recall was never announced but parties did agree on a $200 million settlement — although it has yet to be approved by the judge.

A large portion of the settlement, $145 million, will go toward owners who suffered out-of-pocket losses for their vehicles being stolen or lost, incurring damages, loss of personal property and other insurance related costs.

The companies have been working to get steering wheel locks to the balance of owners whose vehicles are ineligible for the upgrade.