Led by Minnesota Attorney General Keith Ellison and joined by 34 other states, the settlement holds both manufacturers accountable for equipping older vehicles with inadequate security. While the companies have promised corrective action, including repairs, hardware updates and direct payments, the damage already inflicted on consumers is significant.
Theft Spike Linked to Lack of Immobilizers and Social Media
Between 2011 and 2022, Hyundai and Kia reportedly sold about 9 million vehicles across the U.S. without equipping them with engine immobilizers, a basic anti-theft component that prevents the engine from starting without the correct key. According to the Maryland Attorney General’s Office, just 26% of Hyundai and Kia vehicles sold in the U.S. in 2015 included the technology, far behind the 96% average across other carmakers.
The vulnerabilities came to national attention after viral videos on platforms like TikTok showed how to start certain models using only a screwdriver and a USB cable. This triggered a dramatic increase in thefts. In Minneapolis, for example, thefts of Hyundai and Kia cars jumped by 836% from 2021 to 2022, according to Minnesota officials.
“This crisis that we’re talking about today started in a boardroom, traveled through the Internet and ended up in tragic results when somebody stole those cars,” said Attorney General Ellison during a press conference. Victims joined Ellison to share stories of repeated thefts and dangerous outcomes, including fatal crashes involving stolen vehicles.
The states argue that the manufacturers installed immobilizers in vehicles sold in Canada and Mexico but delayed widespread U.S. implementation, despite being aware of the risk. The eventual software updates issued by the companies proved insufficient, with some vehicles still being stolen multiple times afterward.
Settlement Includes Free Hardware Fix and Compensation
Under the settlement terms, Hyundai and Kia have committed to a series of corrective measures. According to official statements, all future vehicles sold in the U.S. will be equipped with engine immobilizers. For existing vehicle owners, the companies will offer free installation of zinc-reinforced ignition cylinder protectors, designed to physically block common theft techniques.
The companies will also provide up to $4.5 million in restitution to owners whose cars were damaged or stolen. Those who experienced theft or attempted theft after receiving a previous software fix on or after April 29, 2025, are eligible to submit claims. In addition, the automakers will contribute $4.5 million to cover the states’ investigation and enforcement costs.
Eligible customers will receive direct notice from the companies and will have one year from that date to schedule a free repair at an authorized dealership. Installation availability is expected between early 2026 and early 2027.
Kia said the agreement reflects its “commitment to vehicle security” and expressed intent to keep working with law enforcement and officials to address theft trends exacerbated by social media. While the settlement marks a significant step in resolving a widespread issue, many questions remain for consumers left to deal with the consequences of the years-long delay. With millions of vehicles still vulnerable, attention now shifts to whether the agreed fixes will be implemented effectively, and quickly enough to prevent further incidents.
