Hyundai, Kia reach nationwide anti-theft settlement to repair millions of vehicles

Hyundai Motor Co. and Kia Corp. have reached a nationwide settlement with Minnesota Attorney General Keith Ellison to repair anti-theft technology in millions of vehicles, resolving a dispute over security features that left some cars vulnerable to theft. Under the agreement, the automakers will offer free repairs to all eligible models and will install an engine immobilizer on future vehicles sold in the United States. The settlement could cost the companies more than $500 million for the repairs and includes up to $4.5 million in restitution to customers whose vehicles were damaged in thefts. In total, about 9 million vehicles sold nationwide from 2011 through 2022 are covered by the accord, which was supported by 35 states including California, New Jersey, New York and Pennsylvania.

Owners of eligible vehicles will have one year from the notice date to schedule the repair at an authorized dealership, and the work is expected to be available from early 2026 through early 2027. In addition to the free repairs, Hyundai and Kia will install a zinc sleeve to the ignition cylinder to deter would-be thieves from starting a car by manipulating the ignition. The changes apply to current models and are aimed at reducing theft-related crimes, crashes and injuries tied to the rise in thefts of these specific vehicles.

The heightened attention to Hyundai and Kia thefts has roots in a broader social media-driven theft trend. Beginning in 2021, videos on platforms such as TikTok demonstrated how those cars could be stolen using a screwdriver and a USB cable, spurring copies of thefts nationwide. Minneapolis reported an 836% jump in Hyundai and Kia thefts from 2021 to 2022, a surge that helped propel the state-led effort that culminated in Tuesday’s settlement. Minnesota officials said the crackdown also targeted actions that allowed thieves to exploit vulnerabilities in the vehicles, including the fact that engine immobilizers had been installed on cars sold in Mexico and Canada but not widely in the United States, contributing to thefts, crashes and, in some cases, injuries and fatalities.

The settlement marks a concerted effort by state attorneys general to hold the automakers accountable for security gaps that critics say contributed to a national wave of thefts. Ellison spoke at a news conference with local officials and relatives of theft victims, describing the crisis as one that started in a boardroom and traveled through the internet to tragic results when thieves took advantage of weak anti-theft measures. He emphasized that the actions by Hyundai and Kia are intended to restore consumer confidence and deter future thefts, while stressing the role of social media in encouraging criminal activity.

Beyond the immediate fixes, the agreement requires the automakers to supply engine immobilizers on all future U.S.-sold models and to maintain a strong security program that could include ongoing updates to prevent theft techniques. The companies said the accord is one of several anti-theft efforts they have pursued to safeguard customers. Kia, in a separate statement, said the company is eager to continue working with law enforcement and officials at federal, state, and local levels to combat criminal car theft and to address the influence of social media on theft trends. Hyundai likewise said it would continue to take meaningful action to support customers and ensure peace of mind as the company works with authorities and dealers to implement the settlement.