Hyundai and Kia’s proposed $200 million settlement agreement with owners of vehicles that have been stolen or damaged has been rejected by a federal judge in the U.S.
Approximately 9 million Hyundai and Kia models in the United States from the 2011-2022 model years were manufactured without an immobilizer, leading to a spate of thefts over the past two years, a trend that shows few signs of abating. A bunch of lawsuits quickly followed as the thefts continued before they were consolidated into a single multidistrict litigation case in the Central District of California.
Auto News notes that the $200 million settlement proposed by Hyundai and Kia would have awarded owners whose cars were stolen and never recovered, or totaled, up to $6,125. Meanwhile, individuals whose cars were damaged or had lost personal property during an attempted theft were to be eligible for up to $3,375.
U.S. District Judge James Selna has rejected the proposed settlement, noting the amounts are not satisfactory. He said that vehicles manufactured in 2022 that were stolen would be worth “substantially more” than those built in 2011 and thus, owners should receive more compensation.
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Hyundai has confirmed that it will aim to “clarify and revise” aspects of the proposed settlement and renew its motion for preliminary approval in the coming 2 to 3 weeks.
Both Hyundai and Kia are attempting to combat the thefts. They recently introduced a free software update but it is understood that some 2 million vehicles are not eligible for this update. For owners of these vehicles, Hyundai and Kia have been providing free steering locks but despite the efforts of the two companies, six attorneys general from around the U.S. claim these locks are not enough to deter thieves and have also questioned how effective the software update is.
