Hyundai and Kia Settle Class-Action Lawsuit Over Lack of Immobilizer
In recent years, there have been reports of amateur thieves easily stealing older Hyundai and Kia models due to the lack of an electronic immobilizer. Despite the slow response from the automakers in fixing this issue, a group of owners took matters into their own hands by filing a class-action lawsuit. The case has now been settled, resulting in a significant payment from Hyundai and Kia.
According to Hagens Berman, one of the law firms handling the case, the settlement amounts to over $200 million. This is due to the automakers’ “failure to equip 2011-2022 models with an immobilizer, a common anti-theft device in modern cars which prevents most vehicles from being started unless a code is transmitted from the vehicle’s smart key.” The plaintiffs argued that this defect allowed thieves to steal the cars in less than 90 seconds, and the poorly designed steering column made the process even easier.
While $200 million may seem like a substantial amount, individual owners will not be receiving a significant payout. There are 9 million vehicle owners involved in the lawsuit, and each person will receive a little over $20. However, this amount is before attorneys’ fees and other costs are taken out of the total. The attorneys handling the case stated that the settlement would help those who have suffered out-of-pocket expenses. Still, $20 is less than half a tank of fuel for some vehicles.
Despite the small payout, the real benefit of this settlement may be the automakers’ agreement to fix the immobilizer issue. Additionally, they will make payments to those who are not eligible for the immobilizer fix. This could prevent future thefts and give owners peace of mind knowing that their vehicles are now more secure.
In conclusion, Hyundai and Kia have settled a class-action lawsuit over the lack of an electronic immobilizer in their 2011-2022 models. While individual owners will not be receiving a significant payout, the automakers’ agreement to fix the issue and make payments to those who are not eligible could prevent future thefts and give owners peace of mind.
