Hyundai Blue Link Lawsuit

Hyundai’s Blue Link telematics system faced a potential shutdown due to Verizon’s 3G network sunset, leading to a lawsuit and subsequent settlement that reshaped the landscape of connected car technology.

Detailed Breakdown:

• Background: Blue Link, a smartphone app offering remote control and diagnostics for Hyundai vehicles, relied on Verizon’s 3G network. Verizon’s planned 3G shutdown threatened to render Blue Link inoperable for millions of users.
• Hyundai’s Claims: Hyundai sued Verizon in 2015, citing breach of contract and potential harm due to:
  • Blue Link system disruption for millions.
  • Significant upgrade costs for Hyundai’s infrastructure.
  • Reputational damage and potential customer loss.
• Settlement (2018): The terms remained undisclosed, but Verizon reportedly agreed to:
  • Extend 3G service for Hyundai by at least two years after the official shutdown.
  • Compensate Hyundai for some upgrade costs.
• Impact: The lawsuit highlighted the challenges of transitioning to new wireless technologies for automakers and the potential consumer impact of network shutdowns.
• Current Status: Hyundai upgraded Blue Link to 4G and 5G networks, ensuring its continued operation for most vehicles. However, some older 3G-reliant models may lose access in the future.
• Key Takeaways:
  • Automakers must carefully consider reliance on specific wireless technologies due to potential disruption from network shutdowns.
  • Consumers should be aware of the impact of network shutdowns on their connected devices and services.