Hyundai and Kia Settle Multistate Lawsuit Addressing Anti-Theft Issues
FOX Business’ Max Gorden joins ‘Varney & Co.’ to break down how the end of federal EV tax credits is shaking up sales and how Hyundai is betting big on electric and hybrid models.
Hyundai and Kia are set to revamp security features in millions of vehicles as part of a significant multistate settlement. This agreement comes in response to accusations that the automakers failed to implement industry-standard anti-theft technology in many of their models.
As part of the settlement, Hyundai and Kia will provide free zinc-reinforced ignition cylinder protectors to current eligible owners. They will also add engine immobilizers to all future U.S. vehicles and pay up to $9 million in restitution to consumers and participating states, as announced by Attorney General Matthew Platkin on Tuesday.
Nearly 4 million Hyundai vehicles and 3.1 million Kia vehicles in the U.S. will be eligible for these upgrades, with installation costs potentially exceeding $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 stated. “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.”
KIA AND HYUNDAI ISSUE MAJOR RECALLS FOR OVER 335,000 VEHICLES DUE TO FUEL TANK MELTING RISK
The logo of Hyundai Motor is pictured in Pyeongtaek, South Korea, on April 15, 2025. (Kim Hong-Ji/REUTERS)
Hyundai and Kia had previously omitted engine immobilizers—devices that prevent a vehicle from starting without a smart key—from millions of their vehicles. In 2015, only 26% of U.S. Kia and Hyundai vehicles were equipped with immobilizers, compared to 96% across other manufacturers, as noted in the announcement.
This lack of immobilizers enabled car thieves to develop a “quick and simple” method to start the cars without a key, a technique that gained popularity on social media in 2023, leading to a surge in vehicle thefts.
“Not only did the number of thefts explode, but many of the vehicles were used in connection with crimes and were involved in numerous traffic collisions,” the announcement highlighted.
OVER 80,000 KIA ELECTRIC, HYBRID VEHICLES RECALLED OVER ISSUES WITH AIRBAGS: NHTSA
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 informed FOX Business via email that the company is “fully committed to upholding vehicle security.” They added, “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. 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 start receiving notices in early 2026 and will have until March 2027 to have the ignition cylinder protector installed at a dealership, as reported by Reuters.
KIA RECALLS 460K TELLURIDE SUVS OVER FIRE RISK; URGES OWNERS TO ‘PARK OUTSIDE’
“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,” Attorney General Matthew Platkin said in a statement. (New Jersey OAG / Youtube)
The multistate settlement involves over 30 states, led by Connecticut, Minnesota, and New Hampshire, with New Jersey, California, Delaware, Illinois, Maryland, Nevada, and Washington serving as co-leads, according to the announcement.
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Hyundai did not immediately respond to FOX Business’ request for comment.
FOX Business’ Max Gorden joins ‘Varney & Co.’ to break down how the end of federal EV tax credits is shaking up sales and how Hyundai is betting big on electric and hybrid models.
Hyundai and Kia are set to revamp security features in millions of vehicles as part of a significant multistate settlement. This agreement comes in response to accusations that the automakers failed to implement industry-standard anti-theft technology in many of their models.
As part of the settlement, Hyundai and Kia will provide free zinc-reinforced ignition cylinder protectors to current eligible owners. They will also add engine immobilizers to all future U.S. vehicles and pay up to $9 million in restitution to consumers and participating states, as announced by Attorney General Matthew Platkin on Tuesday.
Nearly 4 million Hyundai vehicles and 3.1 million Kia vehicles in the U.S. will be eligible for these upgrades, with installation costs potentially exceeding $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 stated. “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.”
KIA AND HYUNDAI ISSUE MAJOR RECALLS FOR OVER 335,000 VEHICLES DUE TO FUEL TANK MELTING RISK
The logo of Hyundai Motor is pictured in Pyeongtaek, South Korea, on April 15, 2025. (Kim Hong-Ji/REUTERS)
Hyundai and Kia had previously omitted engine immobilizers—devices that prevent a vehicle from starting without a smart key—from millions of their vehicles. In 2015, only 26% of U.S. Kia and Hyundai vehicles were equipped with immobilizers, compared to 96% across other manufacturers, as noted in the announcement.
This lack of immobilizers enabled car thieves to develop a “quick and simple” method to start the cars without a key, a technique that gained popularity on social media in 2023, leading to a surge in vehicle thefts.
“Not only did the number of thefts explode, but many of the vehicles were used in connection with crimes and were involved in numerous traffic collisions,” the announcement highlighted.
OVER 80,000 KIA ELECTRIC, HYBRID VEHICLES RECALLED OVER ISSUES WITH AIRBAGS: NHTSA
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 informed FOX Business via email that the company is “fully committed to upholding vehicle security.” They added, “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. 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 start receiving notices in early 2026 and will have until March 2027 to have the ignition cylinder protector installed at a dealership, as reported by Reuters.
KIA RECALLS 460K TELLURIDE SUVS OVER FIRE RISK; URGES OWNERS TO ‘PARK OUTSIDE’
“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,” Attorney General Matthew Platkin said in a statement. (New Jersey OAG / Youtube)
The multistate settlement involves over 30 states, led by Connecticut, Minnesota, and New Hampshire, with New Jersey, California, Delaware, Illinois, Maryland, Nevada, and Washington serving as co-leads, according to the announcement.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Hyundai did not immediately respond to FOX Business’ request for comment.
