Attorney General Matthew J. Platkin announced that New Jersey, along with a coalition of 35 other states, has reached a settlement with Hyundai and Kia regarding the sale of vehicles lacking standard anti-theft technology. The agreement addresses concerns about millions of vehicles sold nationwide without engine immobilizer systems.
Under the terms of the settlement, Hyundai and Kia will equip all future vehicles sold in the United States with industry-standard engine immobilizer technology. The companies will also offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including those previously only eligible for software updates. In addition, up to $4.5 million in restitution will be provided to consumers whose cars are damaged by thefts, and another $4.5 million will be paid to participating states to cover investigation costs.
Attorney General Platkin stated: “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,” said Attorney General Platkin. “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.”
Hyundai and Kia did not install engine immobilizers—a device that prevents a vehicle from starting without its smart key—in many models sold throughout the United States. In 2015, only 26% of Hyundai and Kia vehicles had this feature compared with 96% among other manufacturers. This omission made these cars easier targets for thieves, especially after methods for bypassing ignitions went viral online in 2023.
The resulting surge led Hyundais and Kias—while making up about 6.5% of New Jersey’s vehicle population—to account for roughly 19% of all auto thefts statewide that year.
In response, Attorney General Platkin issued consumer warnings about these vulnerabilities and released an explainer video outlining risks and prevention strategies for affected vehicle owners.
Hyundai and Kia launched software updates in 2023 but initially offered physical ignition cylinder protectors only for about 20% of affected vehicles. According to state officials, the software solution could still be bypassed by thieves.
Now, under the settlement terms, all eligible consumers can have zinc-reinforced ignition cylinder protectors installed at no cost at authorized dealerships after receiving notification from Hyundai or Kia. Consumers will have one year from notice date to schedule installation.
Additionally, consumers who experienced theft or attempted theft after installing the software update (on or after April 29, 2025) may file claims for compensation related to certain expenses incurred during such incidents. Information on eligibility and claims submission is available at HKMultistateimmobilizersettlement.com for Hyundai owners or https://customercare.kiausa.com/SWLD (or by calling (800) 333-4Kia(4542)) for Kia owners.
Connecticut, Minnesota, and New Hampshire led negotiations on this multistate agreement alongside co-leads New Jersey, California, Delaware, Illinois, Maryland, Nevada, and Washington; several other states joined as well.
