Hyundai, Kia, Toyota: The Fight Against Theft
Theft is a major and frequently overlooked manufacturing risk. It comes in multiple forms, impacting manufacturers' operations, profitability and productivity.
The industry no longer just deals with straight thefts (physically stealing and pilfering cargo), but more strategic thefts (where fraudulent thieves trick drivers and logistics workers into giving them vital goods).
Employee and supplier fraud costs manufacturers in the US alone $50bn annually.
According to Allianz Global Corporate & Speciality, theft is one of the leading causes of insurance claims in the manufacturing sector, contributing to 21% of the value of all claims.
The Association of Certified Fraud Examiners (ACFE) also reports that businesses, including manufacturers, lose at least 5% of their annual revenue to forms of theft every year.
These numbers only grow in automotive manufacturing, where the physical theft of cars is a significant risk.
Keyless-entry cars have created new opportunities and methods for theft.
Thieves use ‘relay’ boxes to interrupt the automatic unlocking system, fooling these cars into thinking their owner's key is close nearby.
This then enables them to open, start cars and drive away.
Leading automotive manufacturers like Toyota and Lexus have faced this new theft method, with the Toyota Land Cruiser and Lexus RX models particularly vulnerable.
Automotive manufacturers like Kia, Hyundai and Toyota are fighting back, securing their new vehicles with advanced software and protecting their old models with retroactive upgrades.
Deterring key-less vehicle theft
At the end of last year, Kia America introduced new theft deterrent devices for its vehicles that weren’t eligible for software upgrades.
The hardware modification- an ignition cylinder protector- works to combat theft by preventing its removal. Removing it had been popularised across social media as a method of theft.
Kia America also announced a software upgrade that enhanced vehicle security by restricting the operation of the ignition system if a criminal attempts to steal a locked vehicle without a key.
It also provided free steering wheel locks directly to the affected owners of vehicles that are not eligible for the software upgrade.
Over the past year, the anti-theft software upgrade has been installed on close to 940,000 vehicles, with more planned in early 2024.
“Vehicle security is a top priority for Kia and we continue to take action to support our customers by helping to protect their vehicles from thefts, which have been encouraged by content spread across social media,” said Greg Silvestri, vice president, service operations, Kia America.
“Reinforcing the ignition cylinder body is the latest step to help guard against these methods of theft and we strongly encourage owners of vehicles that don’t have engine immobilizers and are not able to receive our security software upgrade to have this free security measure installed.”
Hyundai Motor America has offered similar solutions to Kia, protecting ignition cylinders and steerage locking.
“At Hyundai, taking care of our customers is our highest priority,” said Brian Latouf, President global chief safety officer, Hyundai Motor Company.
“This latest field action provides an additional mechanical theft prevention solution for vehicles without engine immobilisers or our installed software security upgrade that adds to our comprehensive customer-based actions to address this theft issue.”
Toyota GB also remains firmly committed to eradicating vehicle theft, noting in a statement:
“As a vehicle manufacturer, we can never completely eliminate the risk of vehicle theft.
"This is an industry-wide issue, concerning all vehicle manufacturers and affecting the most popular models first.
"In order to further reduce the theft risk, we regularly collaborate and share information with insurance associations, police and law enforcement authorities, theft prevention experts and other key stakeholders around the world.
"This enables us to understand new threats and techniques used by thieves and develop more secured systems.”
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