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Civil investigation launched into sale of Kia, Hyundai vehicles to Minnesotans

Attorney General Keith Ellison says the automakers sold cars despite knowing they lacked industry-standard anti-theft technology.

ST PAUL, Minn. — Minnesota Attorney General Keith Ellison says he has served investigative demands on automakers Kia and Hyundai as part of a civil investigation linked to an explosion of vehicle thefts that have wreaked havoc on the lives of consumers. 

At a press conference Tuesday Ellison explained that the purpose of the civil investigation is to determine whether Kia and Hyundai violated state consumer protection and public nuisance laws by knowingly selling Minnesotans vehicles that lacked industry-standard, anti-theft technology. 

“The drastic increase in Kia and Hyundai vehicle thefts is continuing to threaten public safety and do serious harm to our communities,” Ellison said. “With this investigation, we will follow where the facts lead us and will continue to use all the tools of the law to help keep Minnesotans safe.”

It is no secret that thefts of Kia and Hyundai vehicles have skyrocketed across the country, largely due to a decided lack of anti-theft technology and social media platforms that show how easy it is to steal them. Reported thefts of Kia and Hyundai vehicles in 2022 increased by 836% in Minneapolis and 611% in St. Paul when compared to 2021 numbers. 

Crime stats show some of the targeted vehicles have been stolen two or three times in the same year, and link the stolen cars to other, more violent crimes. In Minneapolis alone investigators have tied Kias and Hyundais stolen in 2022 to five homicides, 13 shootings, 36 robberies and 265 motor vehicle accidents. The incidents are also a huge drain on police manpower, tying officers up when they could be working on more pressing matters. 

"At the end of the day, the problems is caused by two companies that decided that they could earn a larger profit by excluding the immobilizers that are industry standard, that every other vehicle has," said St. Paul Mayor Melvin Carter, appearing at the news conference with AG Ellison and his Minneapolis counterpart Jacob Frey. "They've made millions of dollars off selling those vehicles, they've created enormous cost in terms of lives lost, in terms of neighbors traumatized, in terms of property damage, in terms of people inconvenienced, and most certainly in terms of cost to taxpayers as a result of the enormous response our cities have to make when these crimes occur."

The engine immobilizers Carter referenced prevent a vehicle’s engine from starting without using the vehicle’s authorized “smart” key that stores an electronic security code. By failing to equip their vehicles with this anti-theft technology, Ellison and other officials maintain Kia and Hyundai have lagged behind industry standards and put profit before safety and consumer well-being. 

St. Paul resident Ian Evans knows the impact of not having anti-theft technology firsthand. In December thieves broke into his Kia, bypassed the ignition and stole the car from his apartment garage. Evans had to scramble to fill out police reports and secure a rental so he could still visit family in Wisconsin for the holidays. On top of all that, he didn't get his own car back for two months, due to the huge number of Kia and Hyundai vehicles ahead of his in the repair line. 

Evans also spoke of the lingering uncertainty left after being a target. "It is a violating feeling," he admitted. "Even though I'm parked in the Capitol lot right now, I have my club (anti-theft device) on that same Kia I just got back two weeks ago. And I'm hoping it's still there, frankly." 

Ellison said a public announcement of an investigation by his office is unusual, as most often they don't want the targets to know a case is being assembled until a complaint is filed. He says this case is different, as it directly impacts public safety and the well-being of our communities. 

When asked if there is a timeframe attached to the decision of whether to sue the automakers, the attorney general said no, but insisted he will act if the findings have merit. 

"We will not hesitate to enforce the law when we find violations of it," Ellison vowed. 

Any Minnesotan who has a story about their Kia or Hyundai being stolen and the impact on their life is asked to call the attorney general's office at 651-296-3353 or file a complaint online. 

Hyundai released this statement to KARE 11 following Tuesday's press conference:

"Hyundai is committed to the security of our customers and plans to continue our ongoing support of the communities affected by this theft issue.

All of our vehicles meet the anti-theft requirements of Federal Motor Vehicle Safety Standard 114. 

We appreciate and share the interest of Minneapolis Mayor Jacob Frey, Saint Paul Mayor Melvin Carter, and Minnesota Attorney General Keith Ellison in addressing the rise in thefts of these vehicles in Minnesota and elsewhere.

We recently announced the launch of a free software upgrade to prevent the theft mode popularized on social media; we will also soon launch a program to reimburse eligible customers for their purchase of steering wheel locks."

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