Hyundai And Kia Agree To Pay 200 Million Peace Payments In Cases Of Claims For Car Theft That Went Viral On TikTok

The challenge of Hyundai's car theft on TikTok is detrimental to consumers. (photo: Twitter @Hyundai)

Hyundai and Kia have approved a peaceful payment of 200 million US dollars (Rp2.9 trillion) from a class-action lawsuit related to a series of car thefts inspired by viral challenges on TikTok social media.

The challenge, known as "Kia Challenge" on the social media platform, has led to hundreds of car thefts across the country, including at least 14 reported accidents and eight deaths, according to the National Highway Traffic Safety Administration (NHTSA).

Thieves known as "Kia Boyz" will post videos on YouTube and TikTok on how to bypass vehicle security systems using USB cable-simple tools.

The theft is reportedly easy to do because many Hyundai and Kia vehicles produced between 2015 and 2019 are not equipped with electronic immobilizers that prevent thieves from easily entering and passing through the fire system. This feature is standard equipment for almost all vehicles from the same period produced by other manufacturers.

This settlement only applies to about 9 million vehicles that are not equipped with start/stop buttons and anti-stolen immunizers. In February, the companies also offered free software updates to extend the duration of the alarm sound from 30 seconds to one minute and required a key to the switch. turn on the vehicle.

According to Reuters, the settlement also covers up to 145 million US dollars (Rp2.1 trillion) for losses suffered by consumers as their cars were stolen.

"We appreciate this opportunity to provide additional support for our vehicle owners affected by the increasing and persistent criminal activity targeting our vehicles," Jason Erb, Head of Legal Officer of Hyundai Motor North America, said in a statement. "Customers' safety remains a top priority."

There has been no national record of how many Hyundai and Kia vehicles have been stolen, but data from several cities provides an overview of how viral this trend is. For example, in Milwaukee, police reported that 469 Kia and 426 Hyundai cars were stolen in 2020. This figure jumped in the following year to 3,557 Kia cars and 3,406 Hyundai cars, according to NPR.

Hyundai and Kia's efforts to fix this problem have not been evenly distributed. Last year, the automotive company said that it would charge owners at least USD 170 (IDR 2.5 MILLION) for security kits to fix this problem. However, with the cost of installing and labor, the cost could reach USD 500 (IDR 7.4 million).