Kia and Hyundai are facing a legal dispute in the United States over the wave of theft that affected certain models of both brands.
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About 200 insurance companies are seeking to recover more than $1 trillion that they claim to have paid for vehicles stolen or damaged during attempted theft.
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The case took a turn on September 14, 2026 when the Ninth Circuit Court of Appeals revoked the decision of a California federal court that had dismissed claims against the South Korean companies for jurisdictional issues.This allows the process to continue, but still does not determine whether Kia or Hyundai should pay that amount.
The claims are related to certain Hyundai and Kia models from the model years 2011 to 2022 that, according to the insurers, were manufactured without engine immobilizers. This device prevents the vehicle from starting if it does not detect an authorized key.
The absence of that system left certain models vulnerable and the problem became much more known after social media videos showed ways to steal them quickly.
The situation caused a sharp increase in theft and, subsequently, significant costs for owners and insurance companies.
The companies involved in the process acted through subrogation claims. In simple terms, they seek to recover from manufacturers the money they have already paid to their customers for losses covered by the policies.
The lawsuit argues that the design of certain vehicles contributed to that situation.The case includes Hyundai Motor Company and Kia Corporation, in addition to their respective US operations.
The point that the Ninth Circuit had to solve was not yet how much money it would pay, but whether the South Korean manufacturers could be brought before a federal court in California.
The Court of Appeal considered relevant shipments of vehicles to the United States through ports in California. Insurers had submitted information on the movement of the vehicles and argued that a significant part of the units intended for the U.S. market went through that state.
For the court, those circumstances could establish a sufficient connection with California to exercise jurisdiction over South Korean companies. For that reason, the previous decision was revoked and the case will be returned to the federal court that leads the trial in Orange County.
The dispute is still far from over. The September 14 ruling allows the claims to continue, but does not establish that Kia and Hyundai are responsible for the more than $1 billion claimed by the insurers.
