Led by Minnesota Attorney General Keith Ellison, the settlement includes 35 states—among them California, New Jersey, New York, and Pennsylvania—and requires the companies to provide a critical software and hardware fix. The cost of these repairs could exceed $500 million, Ellison said. The deal also mandates that all future Hyundai and Kia models sold in the U.S. include an engine immobilizer, a basic security feature that was absent from millions of vehicles sold between 2011 and 2022.
Ellison, who launched the investigation in early 2023, blamed the automakers’ failure to include immobilizers for a spike in car thefts that led to violent crashes, injuries, and deaths—including among teenagers. He said the security flaw was not a technological oversight, pointing out that the same models were equipped with immobilizers in Canada and Mexico. “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,” Ellison stated during a press conference.
Videos Sparked A National Surge In Thefts
The problem intensified in 2021, when videos began circulating on TikTok and other social media platforms demonstrating how easily certain Hyundai and Kia models could be hotwired using just a screwdriver and a USB cable. According to Ellison, this led to a massive increase in thefts in multiple cities. In Minneapolis, reports of Hyundai and Kia thefts rose by 836% between 2021 and 2022.
Officials say the automakers’ lack of immobilizers turned these cars into easy targets, particularly for young people influenced by the viral trend. At the press conference announcing the settlement, Ellison was joined by Twin Cities officials and victims of the thefts. Among them was a man whose car had been stolen nine times, including seven instances after receiving a prior software fix, and a woman whose mother was killed in a crash involving a stolen Kia.
Repair Plan Includes Zinc Sleeve Fix
Under the settlement, both companies are required to offer free repairs to all eligible vehicles. This includes the installation of a zinc sleeve, a hardware solution designed to prevent thieves from accessing and turning the ignition cylinder.
According to the agreement, eligible vehicle owners will have one year from the date they receive official notice to get the fix at an authorized dealership. The repairs are expected to be available from early 2026 through early 2027.
Alongside these technical fixes, the automakers are required to pay up to $4.5 million in restitution to people whose vehicles were damaged or affected by thefts. More details, including a list of eligible models and how to receive compensation or repairs, will be made available through the Hyundai-Kia multi-state immobilizer settlement website, as reported by The Independent.
Kia Responds, Hyundai Remains Silent
Kia released a statement saying that the settlement reflects its commitment to addressing the theft crisis and protecting customers. “Kia is eager to continue working with law enforcement officers and officials at federal, state, and local levels to combat criminal car theft, and the role social media has played in encouraging it, and we remain fully committed to upholding vehicle security,” the company said.
As of Tuesday, Hyundai had not provided any public comment in response to the settlement announcement. The companies had previously attempted to address the issue through software updates, but those efforts fell short in many cases, as evidenced by repeated thefts even after fixes were applied.
