Kia, Hyundai agree to free anti-theft equipment in Minnesota settlement

After a surge in Twin Cities auto thefts, Attorney General Keith Ellison investigated whether the South Korean car companies violated state consumer protection laws.

The Minnesota Star Tribune
December 16, 2025 at 6:38PM
Minnesota Attorney General Keith Ellison, from left, announces a lawsuit against Kia and Hyundai in March 2023 alongside Minneapolis Mayor Jacob Frey, St. Paul Mayor Melvin Carter and Ian Evans, whose 2013 Kia was stolen in 2022. (David Joles/The Minnesota Star Tribune)

Kia and Hyundai have agreed to equip millions of vehicles with anti-theft hardware after a surge of stolen cars in Minnesota and beyond spurred an investigation into the automakers’ safety standards.

The multistate settlement, which Minnesota Attorney General Keith Ellison announced Tuesday, could apply to more than 140,000 vehicle owners in Minnesota.

The manufacturers will notify consumers in the first few months of 2026 if their vehicles are eligible for a free zinc-reinforced cylinder protector, which physically blocks thieves from accessing parts they need to easily steal cars. Those who receive notice will have one year to set up an installation appointment at their local dealer.

In a statement, a Kia spokesman said the agreement is the latest in a series of steps taken to prevent auto thefts.

“Kia is eager to continue working with law enforcement officers and officials at federal, state and local levels to combat criminal car theft and the role social media has played in encouraging it, and we remain fully committed to upholding vehicle security,” the statement said.

A Hyundai spokesman said the company “will continue to take meaningful action to support our customers and ensure peace of mind.”

“This cooperative agreement builds upon Hyundai’s ongoing efforts to enhance vehicle security in response to a method of theft popularized on social media,” the company’s statement said.

Ellison’s office started investigating the manufacturers in 2023 as cities across the country — including Minneapolis and St. Paul — grappled with a rash of auto thefts following viral social media posts challenging teens to steal Kia and Hyundai vehicles. A design feature in many of the South Korean companies’ 2011-22 models allowed people to drive vehicles without a key.

That effort grew to a coalition of 35 attorneys general, who concluded Kia and Hyundai likely had violated state consumer protection and public nuisance laws by failing to include industry-standard anti-theft equipment. Ellison said the companies installed the technology, known as engine immobilizers and used widely by most manufacturers, in the cars it sold in Mexico and Canada.

“Hyundai and Kia unleashed a wave of auto thefts that cost Minnesotans their cars, their hard-earned money, and sometimes even their lives,” Ellison said in a statement. “In short, they put their profits ahead of people’s safety.”

The settlement could cost the companies more than $500 million, he added. The manufacturers also agreed to equip all future vehicles with the technology.

Joining Ellison at a news conference Tuesday were both Twin Cities’ mayors and police chiefs, as well as two victims of auto theft.

Michael Christenson, a local musician and small business owner, said his Kia has been stolen nine times in recent years — including once Monday. As a result, he’s faced skyrocketing insurance premiums, lost equipment and constant worry.

Pakou Hang then spoke about her mother, 70-year-old Phoua Hang, who died in 2022 after the driver of a stolen Kia hit her.

“My message is for the people inside those companies who design the systems, run the numbers, assess the risk and work the factory lines,” Hang said. “You have more power than you think. So if you see a harm coming, stop it. If you know a safer choice exists, choose it. If you hear something is wrong, speak up.”

Kia and Hyundai agreed to provide free software updates for vehicles last year as part of a settlement agreement filed on behalf of consumers. Those individuals are eligible for the hardware fixes under the states’ settlement, said Ellison, who described the software updates as inadequate.

From 2021 to 2022, Minneapolis saw an 836% increase in thefts of Kia and Hyundai vehicles, while St. Paul saw a jump of 611%, according to police officials.

Overall in Minneapolis, this year’s roughly 4,700 motor vehicle thefts are down about 27% from last year and nearly 40% from 2023’s record of nearly 8,000 reports of stolen cars.

In St. Paul, state data showed stolen vehicle reports are down about 13% through November compared to last year and down about 60% from 2022’s high that surpassed 3,000 thefts.

Under the settlement, Kia and Hyundai will also provide up to $4.5 million in restitution to eligible consumers with cars damaged during theft. Another $4.5 million will go to states to defray the costs of the investigation.

Jeff Hargarten of the Minnesota Star Tribune contributed to this story.

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about the writer

Katie Galioto

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Katie Galioto is a business reporter for the Minnesota Star Tribune covering the Twin Cities’ downtowns.

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