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Multistate Settlement with Hyundai and Kia Over Missing Anti-Theft Vehicle Technology

Hyundai and KiaDecember 16, 2025New Jersey Attorney General

Penalty Amount

$4,500,000

Summary

New Jersey Attorney General Matthew Platkin announced a multistate settlement with Hyundai and Kia over the sale of millions of U.S. vehicles lacking industry-standard anti-theft engine immobilizer technology, which contributed to a surge in auto thefts. The settlement requires the manufacturers to equip all future U.S.-sold vehicles with immobilizers, offer free ignition cylinder protectors to eligible owners, provide up to $4.5 million in consumer restitution for theft damage, and pay $4.5 million to the coalition states. The 36-state coalition is led by Connecticut, Minnesota, and New Hampshire, with New Jersey as a co-lead.

Remedy

Hyundai and Kia must equip all future vehicles sold in the United States with industry-standard engine immobilizer anti-theft technology and offer free zinc-reinforced ignition cylinder protectors to eligible vehicle owners and lessees. The manufacturers will provide up to $4.5 million in restitution to consumers whose vehicles were damaged by theft, and pay $4.5 million to the coalition states to cover investigation costs. Eligible consumers have one year from notice to schedule protector installation, and those with qualifying theft-related expenses incurred on or after April 29, 2025, may file restitution claims.

Monetary PenaltyConsumer RefundsInjunctionConsent Decree

Contract Impact

In-house legal teams at automotive manufacturers should review parts supplier agreements to explicitly mandate industry-standard anti-theft technology like engine immobilizers in all future vehicle production contracts. Dealer agreements must be updated to require free installation of zinc-reinforced ignition cylinder protectors for eligible consumers, with clear timelines for notification and service. Consumer lease and sales contracts should include disclosures about anti-theft features, restitution eligibility criteria, and claim filing processes. Additionally, compliance teams should review settlement consent decrees to ensure adherence to injunctive relief requirements, including restitution claim processing deadlines and reporting obligations to coalition states.

Contract Search Terms

anti-theft technology requirementsengine immobilizer clauseignition cylinder protectortheft restitutionconsumer restitution agreementmultistate settlement compliancefuture vehicle equipment mandatesinvestigation cost reimbursement

Violation Types

Entity Details

Entity

Hyundai and Kia

Industry

Automotive

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"automobile manufacturers Hyundai and Kia"
Event Date
"For Immediate Release: December 16, 2025"
Fine Amount
"Pay $4.5 million to the states to defray the costs of the investigation."
Is Multistate
"coalition of 35 other states"
Summary
"sale of millions of vehicles nationwide that lacked industry-standard, anti-theft technology"
Remedy Types
"Equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology;"

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