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Hyundai and Kia will overhaul the safety features of millions of vehicles as part of a sweeping multistate settlement accusing the companies of failing to install industry-standard anti-theft technology on many of their models.
Under the agreement, automakers must provide free zinc-reinforced ignition cylinder guards to eligible current 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 United States will be eligible for the upgrade, and installation costs could exceed $500 million, according to Reuters.
“For years, Hyundai and Kia have deliberately failed to include industry-standard anti-theft technology in their vehicles, contributing to a nationwide increase in car thefts. That ends now,” Platkin said in a statement. “Today’s settlement is a key step in our ongoing efforts to prevent car thefts – and to hold auto manufacturers accountable for their shameful failure to take appropriate action to prevent car thefts.”
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The logo of Hyundai Motor is pictured in Pyeongtaek, South Korea, April 15, 2025. (Kim Hong-Ji/REUTERS / Reuters)
Hyundai and Kia have omitted engine immobilizers – devices that prevent a vehicle from starting without a smart key – on millions of vehicles. In 2015, only 26% of U.S. Kia and Hyundai vehicles were equipped with an immobilizer system, compared to 96% among other manufacturers, the press release said.
The lack of an immobilizer allowed car thieves to devise a “quick and easy” way to start cars without a key, a method that went viral in 2023 and fueled a rise in vehicle thefts, according to the announcement.
“Not only has the number of thefts skyrocketed, but many vehicles have been used in crimes and have been involved in numerous road accidents,” the statement said.
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Kia at the Los Angeles Auto Show at the Los Angeles Convention Center on November 28, 2025. (Myung J. Chun/Los Angeles Times via Getty Images/Getty Images)
A Kia spokesperson told FOX Business in an email that the company remains “fully committed to ensuring vehicle safety.”
“Today’s agreement is the latest in a series of steps Kia has taken to support our customers who have been impacted by criminals using theft methods 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 theft protections.”
Eligible consumers will begin receiving notifications in early 2026 and will have until March 2027 to have the ignition cylinder protector installed at a dealership, Reuters reported.
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“For years, Hyundai and Kia deliberately failed to include industry-standard anti-theft technology in their vehicles, contributing to a nationwide increase in car thefts,” Attorney General Matthew Platkin said in a statement. (BVG of New Jersey / YouTube)
The multi-state settlement included more than 30 states and was led by Connecticut, Minnesota, New Hampshire, with New Jersey, California, Delaware, Illinois, Maryland, Nevada and Washington as co-leads, according to the announcement.
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Hyundai did not immediately respond to FOX Business’ request for comment.
