- Published 2026.10.11 07:11
Kansas City ordinance passed…29 municipalities join cost recovery
Consumer compensation followed by accountability for public safety waste
Total settlement amount kept confidential and whether final signing occurs this year
Hyundai Motor and Kia are wrapping up litigation with US municipalities through a nationwide settlement, following a consumer class action over a surge in vehicle thefts in the United States. Kansas City, which sued claiming that the absence of anti-theft devices wasted public safety resources such as police administrative capacity, unanimously approved the settlement, formalizing a large-scale compensation deal involving 28 to 29 localities.
According to city council meeting records reported by US local outlet The Beacon on October 9, the Kansas City Council passed Ordinance 260838 authorizing the city attorney to sign a theft-related cost recovery settlement with Hyundai Motor and Kia's US units. The ordinance was approved 12-0 at a full session on September 24. Kansas City Attorney Matthew Gigliotti said 28 to 29 other municipalities are also finalizing nationwide settlements with the automakers.
This municipal litigation settlement is separate from the consumer damage compensation of about $200 million (about 270 billion won). Starting around 2022, so-called 'Kia Boys' thefts targeting Hyundai Motor and Kia vehicles without engine immobilizers became a trend on US social media such as TikTok.
As theft crimes surged beyond simple individual vehicle damage, local police dispatch counts rose and administrative costs for property damage response soared. Starting in 2023, Kansas City and many other US municipalities filed damages suits claiming the manufacturers omitted basic anti-theft devices, forcing communities to spend public safety budgets. These cases were consolidated into multidistrict litigation (MDL) in California federal court.
The structure makes manufacturers pay for indirect administrative costs caused by defective products. The company has taken a financial hit by paying public sector compensation after consumer compensation, but the blanket settlement is positive in that it removes legal uncertainty with many municipalities that could have dragged on.
Limitations remain. Specific settlement amounts and terms will be kept confidential until all municipalities sign. Kansas City said it plans to use its allocated settlement funds for the fiscal 2027-2028 violence prevention fund, but it has not been confirmed whether this amount fully covers public costs such as actual police deployment. Damage calculation standards may also differ by municipality, so the criteria for future allocation remain unclear.
In the US auto market, major competitors such as Honda, Toyota and Ford have mostly equipped vehicles with immobilizers as standard since the 2010s, avoiding crime targeting. In contrast, Hyundai Motor and Kia excluded them from certain US export trims in the past for cost savings, and belatedly distributed free software updates, exposing inferior security and paying massive post-processing costs.
Whether all municipalities sign by year-end and the lawsuits are finally dismissed, and when the veiled total settlement amount will be disclosed through court records, are points to watch. Also, whether other state governments not included in this nationwide municipal settlement file additional suits remains a lingering issue the company must fully resolve.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
