Hyundai and Kia reach multistate settlement over anti-theft concerns

Hyundai and Kia will overhaul security features in millions of vehicles as part of a sweeping multistate settlement accusing the companies of failing to install industry-standard anti-theft technology in many of their models.

Under the agreement, the automakers must provide free zinc-reinforced ignition cylinder protectors to current eligible owners, add engine immobilizers to all future U.S. vehicles and pay up to $9 million in restitution to consumers and participating states, Attorney General Matthew Platkin announced Tuesday. 

Nearly 4 million Hyundai vehicles and 3.1 million Kia vehicles in the U.S. will be eligible for the upgrade, and installation costs could exceed $500 million, according to Reuters.

“For years, Hyundai and Kia deliberately failed to include industry-standard anti-theft technology in their vehicles, contributing to a nationwide spike in auto thefts. That ends now,” Platkin said in a statement. “Today’s settlement is a key step in our ongoing efforts to prevent auto thefts — and to hold carmakers accountable for their shameful failure to take appropriate action to prevent auto thefts.”

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The logo of Hyundai Motor is pictured in Pyeongtaek, South Korea, on April 15, 2025. (Kim Hong-Ji/REUTERS)

Hyundai and Kia omitted engine immobilizers — devices that prevent a vehicle from starting without a smart key — from millions of vehicles. In 2015, only 26% of U.S. Kia and Hyundai vehicles had immobilizers, compared with 96% across other manufacturers, the announcement stated.

The lack of immobilizers allowed car thieves to devise a “quick and simple” way to start the cars without a key, a method that went viral in 2023 and fueled a spike in vehicle thefts, according to the announcement.

“Not only did the number of thefts explode, but many of the vehicles were used in connection with crimes and were involved in many traffic collisions,” the announcement noted.

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Kia at the Los Angeles Auto Show at the Los Angeles Convention Center on Nov. 28, 2025.  (Myung J. Chun / Los Angeles Times via Getty Images)

A spokesperson for Kia told FOX Business in an email that the company remains “fully committed to upholding vehicle security.”

“Today’s agreement is the latest in a series of steps that Kia has taken to support our customers who have been impacted by criminals using methods of theft popularized on social media to steal or attempt to steal certain vehicle models,” the spokesperson said. “Kia has worked tirelessly to find new, creative, and — most importantly — effective ways to make these vehicles more difficult for criminals to steal beyond their already existing…