New Jersey co-leads multistate settlement requiring anti-theft upgrades for Hyundai, Kia vehicles
TRENTON, N.J. — New Jersey co-led a multistate settlement with Hyundai and Kia that requires the automakers to implement anti-theft upgrades and provide restitution to consumers whose vehicles were damaged in thefts, Attorney General Matthew J. Platkin announced.
Platkin said New Jersey worked alongside 35 other states in the settlement, which addresses the sale of millions of vehicles nationwide that lacked industry-standard engine immobilizer technology.
Under the agreement, Hyundai and Kia will equip all future vehicles sold in the United States with engine immobilizer anti-theft technology, offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, provide up to $4.5 million in restitution to eligible consumers whose vehicles were damaged by theft or attempted theft, and pay $4.5 million to participating states to offset investigative costs.
“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. That ends now. Today’s settlement is a key step in our ongoing efforts to prevent auto thefts — and to hold carmakers accountable for their shameful failure to take appropriate action to prevent auto thefts,” Platkin said. “The settlement announced today builds on the tireless work of law enforcement leaders across the state to combat auto theft and keep our communities safe — work that has resulted in dramatic reductions in auto thefts statewide.”
According to the states, Hyundai and Kia did not include engine immobilizers — a technology designed to prevent a vehicle from starting without a coded key — in millions of vehicles sold in the United States. A report cited by the states indicated that in 2015, about 26% of Hyundai and Kia vehicles sold domestically were equipped with immobilizers, compared with 96% of vehicles sold by other manufacturers.
State officials said the absence of immobilizers allowed thieves to exploit a method for starting certain vehicles without a key, which spread widely in 2023 and led to a sharp increase in thefts nationwide. In New Jersey, Hyundai and Kia vehicles accounted for about 19% of reported auto thefts in 2023, despite representing roughly 6.5% of vehicles on the state’s roadways, officials said.
The attorney general’s office said Hyundai and Kia later introduced a software update and offered ignition cylinder protectors for some affected vehicles. The states alleged the software update could be bypassed and did not fully address the vulnerability.
As a result of the settlement, consumers with eligible vehicles can have zinc-reinforced ignition cylinder protectors installed free of charge at authorized Hyundai or Kia dealerships. Eligible owners and lessees will be notified by the companies and will have one year from the date of notice to schedule installation.
Consumers who installed the software update but experienced a theft or attempted theft on or after April 29, 2025, may be eligible to seek restitution for certain theft-related expenses, officials said.
Connecticut, Minnesota and New Hampshire led the settlement, with New Jersey, California, Delaware, Illinois, Maryland, Nevada and Washington serving as co-lead states. More than two dozen additional states and the District of Columbia also joined the agreement.
