Hyundai and Kia Agree to Repair Nine Million Vehicles in Multistate Anti-Theft Settlement

Hyundai and Kia will provide free anti-theft repairs to approximately nine million vehicles under a settlement announced December 17, 2025, by Minnesota Attorney General Keith Ellison. According to NBC News, the nationwide agreement covers vehicles manufactured between 2011 and 2022 that lack engine immobilizer technology. The settlement involves 35 states, including California, New Jersey, New York, and Pennsylvania.

The automakers will install zinc sleeves on eligible vehicles to prevent thieves from breaking ignition cylinders. Repairs will cost the companies up to $500 million. Hyundai and Kia must also equip all future vehicles sold in the United States with engine immobilizers. The companies will pay up to $4.5 million in restitution to owners whose vehicles were damaged by thieves. Customers have one year from notification to obtain free repairs at authorized dealerships. Repairs become available from early 2026 through early 2027.

Why This Settlement Matters

Vehicle thefts targeting these models created widespread problems for owners beyond lost property. Minneapolis reported an 836% increase in Hyundai and Kia thefts from 2021 to 2022. Insurance companies responded by raising premiums or refusing coverage entirely for affected models. CBS News reported that in 2023, the Highway Loss Data Institute found these vehicles without immobilizers had a theft claim rate of 2.18 per 1,000 insured vehicle years. The rest of the automotive industry combined had a rate of 1.21.

Social media videos beginning in 2021 demonstrated how thieves could steal these vehicles using only a screwdriver and USB cable. The viral nature of these instructions amplified theft rates nationwide. Some victims experienced repeated thefts. One Minneapolis resident had his car stolen nine times, including as recently as December 16, 2025. Stolen vehicles also led to fatal accidents. Attorney General Ellison was joined at his news conference by a woman whose mother died when a stolen Kia crashed into her parents' vehicle.

Industry Context and Security Standards

The settlement addresses a gap between industry practice and the automakers' decisions. CT News Junkie reported that only about 25% of Hyundai and Kia vehicles sold in the United States during the affected years included engine immobilizers. By contrast, 96% of vehicles sold by other manufacturers had immobilizers as standard equipment. The companies installed these security features on vehicles sold in Canada and Mexico but not widely in the United States.

Engine immobilizers prevent vehicles from starting without a programmed key or electronic fob. The technology has been standard across the automotive industry since the early 2000s. Autoblog data shows the Hyundai Elantra remained the most stolen car in the United States during the first half of 2025, with 11,329 thefts despite software patches released by the manufacturer. The Kia Optima ranked fifth with 6,011 thefts during the same period. Overall vehicle thefts declined 23% nationally compared to 2024, yet these models continued to face disproportionate targeting.

The settlement follows previous actions by the automakers. Both companies previously offered software updates and distributed steering wheel locks to customers. Attorney General Ellison stated these measures proved insufficient. States launched investigations in early 2023 after the theft crisis escalated. The settlement requires more comprehensive fixes through hardware modifications rather than software updates alone.

Further Reading

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