South Korean automakers Hyundai and Kia have agreed to retrofit about 7 million vehicles in the United States to address widespread theft concerns, resolving an investigation led by a bipartisan coalition of 35 state attorneys general.
Under the agreement announced on December 16, the automakers will also equip all new U.S. vehicles with industry-standard engine immobilizer anti-theft technology, a move aimed at curbing theft methods that spread widely on social media platforms such as TikTok.
Free Anti-Theft Hardware for Existing Vehicles
As part of the settlement, Hyundai and Kia will offer free zinc-reinforced ignition cylinder protectors to owners of eligible vehicles. The hardware upgrade will apply even to vehicles that were previously only eligible for software-based security updates.
Hyundai said the hardware fix will be available for nearly 4 million vehicles, while Kia said it will cover about 3.1 million U.S. vehicles. The retrofit is designed to physically reinforce the ignition cylinder and prevent its removal, a key vulnerability exploited by thieves.
Social Media-Fueled Theft Crisis
The agreement follows years of rising thefts linked to viral social media videos showing how to steal certain Hyundai and Kia models that lacked push-button ignitions and engine immobilizers.
U.S. regulators said in 2023 that thefts linked to these methods resulted in at least 14 reported crashes and eight fatalities nationwide. The incidents prompted lawsuits, regulatory scrutiny, and mounting pressure from state officials.
Automakers to Pay Restitution
Hyundai and Kia also agreed to pay up to $9 million in restitution to consumers and states to help cover the costs of the investigation.
Minnesota Attorney General Keith Ellison said the total cost of installing ignition cylinder protectors on all eligible vehicles could exceed $500 million, based on estimates provided by the automakers.
“By failing to include industry-standard anti-theft technology in their vehicles, Hyundai and Kia unleashed a wave of auto thefts that cost Minnesotans their cars, their hard-earned money, and sometimes even their lives,” Ellison said.
Mandatory Immobilizers on Future Vehicles
In a key forward-looking provision, Hyundai and Kia committed to installing engine immobilizer anti-theft systems on all future U.S. vehicles. Immobilizers prevent a vehicle from starting unless the correct key or electronic signal is present, a feature long considered standard across much of the auto industry.
Hyundai said the agreement builds on its earlier efforts to address thefts involving certain 2011–2022 model-year vehicles that were sold without immobilizers. Kia said the zinc-sleeve modification specifically blocks the theft method popularized on social media by reinforcing the ignition system.
Timeline for Vehicle Owners
Eligible vehicle owners will begin receiving official notices in early 2026. They will have until the end of March 2027 to schedule and complete installation of the ignition cylinder protector at local dealerships.
Prior Settlements and Software Updates
The new agreement follows a $200 million consumer class-action settlement reached in 2023 over rampant thefts of Hyundai and Kia vehicles. That same year, the automakers also rolled out software upgrades for 8.3 million U.S. vehicles lacking immobilizers, though critics argued hardware fixes were still necessary.
The latest settlement marks one of the most comprehensive responses yet to the theft crisis, combining restitution, mandatory hardware upgrades, and permanent changes to vehicle security standards.
