Hyundai and Kia are entering into multi-state negotiations due to anti-crime issues
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Hyundai and Kia will repair the safety features of millions of vehicles as part of a plan to address the company’s failure to install industry-standard anti-theft technology in many of its vehicles.
Under the agreement, automakers must provide free zinc-enhanced cylinder guards to eligible current owners, add engine blocks 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.
About 4 million Hyundai vehicles and 3.1 million Kia vehicles in the US will be eligible for the repairs, and the cost of installing them could exceed $500 million, according to Reuters.
“For years, Hyundai and Kia have deliberately failed to install industry-standard anti-theft technology in their vehicles, which has contributed to the increase in car theft across the country. That is ending now,” said Platkin in a statement. “Today’s settlement is an important step in our ongoing efforts to prevent car theft – and to hold automakers accountable for their shameful failure to take appropriate measures to prevent car theft.”
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The Hyundai Motor logo is displayed in Pyeongtaek, South Korea, on April 15, 2025. (Kim Hong-Ji/REUTERS)
Hyundai and Kia have removed engine immobilizers – devices that prevent a car from starting without a smart key – in millions of cars. In 2015, only 26% of US Kia and Hyundai vehicles had immobilizers, compared to 96% for other manufacturers, the announcement said.
The lack of immobilizers has prompted car thieves to develop a “quick and easy” way to start cars without a key, a technique that went viral in 2023 and fueled a surge in car theft, according to the announcement.
“Not only was there an explosion of car theft incidents, but also many cars were used in criminal activities and were involved in many car collisions,” said the announcement.
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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 Kia spokesperson told FOX Business via email that the company “remains fully committed to vehicle safety.”
“Today’s agreement is the latest in a series of measures taken by Kia to support our customers who have been victimized by criminals who use popular theft methods on social media to steal or attempt to steal certain types of vehicles,” said a spokesperson. “Kia has worked tirelessly to find new, innovative, and – most importantly – effective ways to make these vehicles more difficult for criminals to steal beyond the protections already in place.”
Eligible buyers will begin receiving notices in early 2026 and will have until March 2027 to install cylinder protection at the dealership, Reuters reported.
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“For years, Hyundai and Kia have deliberately failed to install industry-standard anti-theft technology in their vehicles, which has contributed to the increase in vehicle theft across the country,” said Attorney General Matthew Platkin in a statement. (New Jersey OAG / Youtube)
The multi-state settlement includes more than 30 states, and was led by Connecticut, Minnesota, New Hampshire, and New Jersey, California, Delaware, Illinois, Maryland, Nevada, and Washington as other leaders, according to the announcement.
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Hyundai did not immediately respond to FOX Business’ request for comment.
