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Hyundai and Kia to overhaul security features in millions of the vehicle The move comes as part of a broader multi-state settlement that accuses both companies of failing to include industry-standard anti-theft technology in many models.
Under the agreement, automakers must provide zinc-reinforced ignition cylinder protectors free of charge to current eligible owners, add engine immobilizers to all future U.S. vehicles, and pay up to $9 million in damages. To consumers Attorney General Matthew Platkin made the announcement Tuesday.
nearly 4 million hyundai car According to Reuters, 3.1 million Kia vehicles in the U.S. will be eligible for the upgrade, which could cost more than $500 million to install.
“Hyundai and Kia have intentionally failed to include industry-standard anti-theft technology in their vehicles for years. nationwide Car thefts are on the rise. This is the end,” Platkin said in a statement. “Today’s settlement is an important step in our continued efforts to prevent auto theft and holds automakers accountable for their shameful failure to take appropriate steps to prevent auto theft.”
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The Hyundai Motor Company logo was photographed on April 15, 2025 in Pyeongtaek, South Korea. (Kim Hongji/Reuters/Reuters)
Hyundai and Kia have omitted engine immobilizers (devices that prevent a vehicle from starting without a smart key) from millions of vehicles. According to the announcement, in 2015, only 26% of Kia and Hyundai cars in the U.S. had immobilizers installed, compared to 96% for other manufacturers.
The lack of an immobilizer allowed car thieves to devise a “quick and easy” way to start a car without a key, which quickly became popular in 2023, fueling a surge in car thefts, the statement said.
“Not only has the number of thefts increased explosively, but many vehicles have been used in crimes and have been involved in many traffic accidents,” the statement said.
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Kia Motors attended the Los Angeles Auto Show held 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 “committed to maintaining the security of our vehicles.”
“Today’s agreement is the latest in a series of steps taken by Kia Motors to support customers who have been victimized by crimes using theft techniques spread on social media to steal or attempt to steal certain vehicle models,” the spokesperson said. “Kia Motors has worked tirelessly to find new, creative, and most importantly, effective ways to go beyond existing anti-theft measures and make it more difficult for criminals to steal these vehicles.”
According to Reuters, eligible consumers will begin receiving notifications in early 2026 and will need to have the ignition cylinder protector installed by a dealer by March 2027.
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“For years, Hyundai and Kia have intentionally not equipped their vehicles with industry-standard anti-theft technology, contributing to the sharp increase in auto thefts nationwide,” Attorney General Matthew Platkin said in a statement. (New Jersey OAG/Youtube)
More than 30 states participated in this multistate settlement, led by Connecticut, Minnesota, and New Hampshire. new jerseyCalifornia, Delaware, Illinois, Maryland, Nevada and Washington joined as co-leads, according to the announcement.
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Hyundai did not immediately respond to FOX Business’ request for comment.
