New Jersey Attorney General Matt Platkin announced that the state has co-led a coalition of 35 other states in a settlement with Hyundai and Kia over the automakers’ sale of millions of vehicles that lacked industry-standard anti-theft technology, a shortcoming that officials say contributed to a nationwide surge in auto thefts.
Under the settlement, Hyundai and Kia agreed to equip all future vehicles sold in the United States with engine immobilizer technology, a widely used anti-theft feature that prevents a vehicle from being started without a properly coded key. The companies will also provide additional protections and financial compensation tied to past thefts.
As part of the agreement, Hyundai and Kia will offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles. The devices are designed to block access to the ignition assembly and prevent thieves from starting the car without a key. The offer applies to vehicles that were previously eligible only for software updates, expanding the scope of physical anti-theft protections.
The automakers will also provide up to $4.5 million in restitution to eligible consumers whose vehicles were damaged or targeted by thieves, and pay an additional $4.5 million to the participating states to help cover the costs of the investigation.
“For years, Hyundai and Kia deliberately failed to include industry-standard anti-theft technology in their vehicles, contributing to a nationwide spike in auto thefts,” Platkin said in a statement. He said the settlement is intended both to prevent future thefts and to hold manufacturers accountable for past decisions.
Hyundai and Kia chose not to install engine immobilizers in millions of vehicles sold in the U.S., even as most other automakers widely adopted the technology. According to one report cited by state officials, only 26% of Hyundai and Kia vehicles sold in the U.S. in 2015 were equipped with immobilizers, compared with 96% of vehicles sold by other manufacturers.
The lack of immobilizers made certain Hyundai and Kia models vulnerable to a simple method of theft that allowed criminals to start the vehicles without a key. That method spread widely on social media in 2023, leading to a sharp rise in thefts nationwide. In New Jersey, although Hyundai and Kia vehicles made up about 6.5% of cars on the road, they accounted for roughly 19% of all auto thefts in 2023, according to the Attorney General’s Office.
In response to the surge, Platkin’s office issued consumer warnings and released educational materials advising vehicle owners on theft risks and prevention steps. Hyundai and Kia later rolled out software updates for many affected vehicles and offered ignition cylinder protectors for a smaller subset of cars. However, the states alleged that the software fixes could be bypassed and did not adequately address the problem.
Under the settlement, consumers with eligible vehicles will now be able to have zinc-reinforced ignition cylinder protectors installed free of charge at authorized dealerships. Eligible owners and lessees will receive notice from the companies and will have one year from the date of notification to schedule the installation.
Consumers who installed the software update but still experienced a theft or attempted theft on or after April 29, 2025, may also be eligible to seek restitution for certain related expenses.