HomeCar NewsKia And Hyundai Might Lose USD 1 Billion Lawsuit In USA For...

Kia And Hyundai Might Lose USD 1 Billion Lawsuit In USA For Selling Unsafe Cars

Kia Seltos
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All the susceptible Kia and Hyundai vehicles with immobilizer chips were provided with a software patch that would prevent car theft with USB-A Cable

As we covered earlier this year, Kia and Hyundai vehicles in USA with manual or mechanical keys were susceptible to theft. The magnitude of this widespread car theft practice against Kia and Hyundai vehicles is so enormous that more than 9 million owners are affected, based on a rough estimate.

Kia And Hyundai cars were stolen with just a USB-A cable

Car thefts are on the rise with thieves getting more tech savvy in their approach. These thieves use specific tools in an innovative and lethal way to get control of the vehicle they are stealing. None of this paraphernalia applied to the Kia and Hyundai vehicles that were stolen with just a USB-A cable.

You read that right. Just a USB-A cable. It was that simple. All one has to do, is somehow get inside the cabin, remove plastic trims on steering column, take out ignition cylinder with keyhole and jam a USB-A cable in the ledge-shaped element and turn to start the engine. Surprisingly, this procedure would even bypass the immobilizer system.

This was later fixed with a software patch free of cost that took care of vehicles that had immobilizer chips in their keys. But all the cars lacking an immobilizer chip were still sitting ducks for potential car thefts.

New Kia Seltos Pluton Blue colour teased
US-spec Kia Seltos Pluton Blue

The lack of car theft preventive measures was first highlighted by a TikTok channel named Kia Boyz. This soon went viral and trending, which a lot of kids and teenagers along with adults and car thieves took notice of. What started as a TikTok challenge spread into a nationwide rampage on Kia and Hyundai Cars.

Kia Boyz TikTok challenge that spread like wildfire

Hyundai cars manufactured between 2015 and 2021 along with Kia cars produced between 2011 and 2021, sold with a mechanical key are prone to this easy theft procedure. In USA, Federal Motor Vehicle Safety Standard 114 states that a car’s engine or motor should prevent normal activation of starting system without presence of a key.

Earlier this year, Kia and Hyundai seem to have agreed to pay USD 145 million covering 9 million drivers for their out-of-pocket losses, as part of a USD 200 million settlement for a class-action lawsuit from the owners. This new USD 1 billion lawsuit is filed by insurance companies that insured said Kia and Hyundai vehicles.

There were arguments in place from South Korean manufacturers to drop this lawsuit, which was rejected by a judge earlier this week. The judge stated it was “reasonably foreseeable” for Kia and Hyundai that vehicles without theft prevention devices would be subjected to theft. Kia and Hyundai legal representatives argued that theft is one of default liabilities an insurance policy covers.

A US District Judge, James Selna, has ruled against Kia and Hyundai’s arguments saying this case asserts claims that both carmakers breached implied and expressed warranties, committed fraud through omission and concealment along with violating state consumer protection laws.

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