On Dec. 16, 2025, New York Attorney General Letitia James and 35 other attorneys general announced a settlement requiring Kia and Hyundai to pay up to $9 million and provide anti-theft measures. The states alleged vulnerable vehicles contributed to thefts, injuries and deaths; the companies’ software fix could be bypassed, the coalition alleged. The agreement provides consumer restitution and requires future immobilizers and free ignition sleeves
Hyundai and Kia Failed to Install Proper Anti-Theft Technology on New Cars, Leading to Thefts, Injuries, and Deaths
The 9th U.S. Circuit Court of Appeals reversed dismissal of Kia Corporation and Hyundai Motor Company from insurers’ lawsuit seeking more than $1 billion for paid theft claims. The court found their U.S.-specific cars’ shipment through California supported jurisdiction there. The case returns to district court; whether jurisdiction is fair remains undecided.
Kia stopped installing immobilizers in many U.S. models starting in 2011. Hyundai followed in 2016. For years, almost nobody noticed, because immobilizers had become so universal that a car without one didn't stand out — it just sat there, unstolen, like everything else on the block. That changed once people found out. A wave of "Kia Boys" videos on TikTok in 2022 turned a quiet manufacturing gap into a nationwide instruction manual, and thefts of the affected models spiked — sometimes with tragic results, and often carried out by drivers barely old enough to hold a license.
In 2014, the U.S. and California alleged Kia and Hyundai sold nearly 1.2 million vehicles with inaccurate emissions certifications and overstated fuel economy. The proposed settlement called for a $100 million penalty, forfeiture of 4.75 million emissions credits and about $50 million in corrective measures; EPA described the decree as lodged and subject to court approval. EPA said its investigation found favorable test conditions and data were a
EPA discovered these violations in 2012 during audit testing. Subsequent investigation revealed that Hyundai’s and Kia’s testing protocol included numerous elements that led to inaccurately higher fuel economy ratings. In processing test data, Hyundai and Kia allegedly chose favorable results rather than average results from a large number of tests.
The EPA subsequently investigated the coastdown test protocol Hyundai and Kia used to measure the road load force of their vehicles. That protocol appears to have included numerous elements that, once aggregated, generated inaccurately low road load forces. For example, Hyundai and Kia restricted their testing to a temperature range where its vehicles coasted farther and faster and prepared vehicle tires for optimized results. In processing test data, Hyundai and Kia chose favorable results rather than average results from a large number of tests. In certain cases, Hyundai and Kia relied predominantly on data gathered when test vehicles were aided by a tailwind.
Reuters reported that at least four suppliers to Kia and Hyundai employed minors at Alabama factories in recent years, with authorities investigating other plants. The accounts included a 14-year-old at Kia supplier Hwashin. Kia said it condemns child labor, does not tolerate unlawful practices among suppliers, and was reviewing supplier hiring practices; suppliers disputed or qualified the allegations.
At least four major suppliers of Hyundai Motor Co and sister Kia Corp have employed child labor at Alabama factories in recent years, a Reuters investigation found, and state and federal agencies are probing whether kids have worked at as many as a half dozen additional manufacturers throughout the automakers’ supply chain in the southern U.S. state.
Children worked for at least four Alabama parts suppliers to Hyundai and Kia in recent years, Reuters found. Staffing agencies placed migrant minors in plants where regulations ban kids from working. State and federal authorities are investigating.
At least four major suppliers of Hyundai Motor Co and sister Kia Corp have employed child labor at Alabama factories in recent years, a Reuters investigation found, and state and federal agencies are probing whether kids have worked at as many as a half dozen additional manufacturers throughout the automakers’ supply chain in the southern U.S. state.
Action taken: Hwashin said their policy forbid the hiring of any worker not of legally employable age. The company said “to the best of our knowledge,” they hadn't hired underage workers. Reuters was unable to reach the recruiter.
MURKY MANUFACTURING: Child labor at parts makers has brought regulatory and law enforcement scrutiny to Hyundai group's supply chain. The suppliers build parts for assembly lines including Hyundai's in Montgomery, above. REUTERS/Cheney Orr
Reuters reports at a plant owned by Hwashin America, a supplier to Hyundai and Kia (sister companies owned by Hyundai Motor Group) in Alabama, a 14-year-old Guatemalan girl worked this May assembling auto body components, according to interviews with her father and law enforcement officials. Other minors also worked at the plant. The Guatemalan child - and her father who also worked at the plant - earned less than other workers in industrial jobs in the region, at around USD11 rather than USD14 per hour. The father and daughter worked for long shifts and commuted for 90 minutes. The cost of their van was deducted from their pay. The child and other minors were fired abruptly when news of child labour in other suppliers came out. The father and daughter were recruited by a company the father knew as JSS, a name familiar in the area as a staffing agency for Hyundai suppliers.
On December 16, 2025, Kia and Hyundai agreed to a multistate settlement over millions of vehicles sold without engine immobilizers. The companies agreed to equip future U.S. vehicles with the technology, offer eligible owners free ignition-cylinder protectors, provide up to $4.5 million in consumer restitution, and pay $4.5 million to states for investigation costs. The states alleged earlier software updates could be bypassed.
Hyundai and Kia chose not to include anti-theft “engine-immobilizer” technology in millions of their vehicles sold throughout the United States, including in New Hampshire. An engine immobilizer prevents thieves from starting a vehicle’s engine without the vehicle’s “smart” key, which stores the vehicle’s electronic security code. According to one report, in 2015, only 26% of the vehicles Kia and Hyundai sold in the United States were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers. Hyundai and Kia therefore lagged far behind industry standards.
Hyundai and Kia chose not to include anti-theft engine-immobilizer technology in millions of their vehicles sold throughout the United States, including in Colorado. An engine immobilizer prevents thieves from starting a vehicle’s engine without the vehicle’s smart key, which stores the vehicle’s electronic security code. According to one report, in 2015, only 26% of the vehicles Kia and Hyundai sold in the United States were equipped with engine immobilizers, compared to 96% of the vehicles sold by other manufacturers. Hyundai and Kia, thus, lagged industry standards.
In a notice issued in April 2024, Indian tax authorities alleged Kia India misclassified Carnival parts imported in separate shipments to pay lower customs duties. Kia denied wrongdoing, said it had provided supporting evidence and was cooperating, and the review was ongoing as of February 5, 2025. Kia had deposited 2.78 billion rupees under protest.
NEW DELHI India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs, according to a document and two sources. Kia competes with Hyundai and Maruti Suzuki in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers. Foreign companies in India face headaches from high taxes and long-drawn-out investigations. For example, Tesla has publicly complained about high taxes on imported EVs and Volkswagen last week sued over a demand for a record $1.4 billion in back taxes that it called "impossibly enormous". Tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of 13.5 billion rupees, according to a government notice Reuters is reporting for the first time. The offence centred on incorrect declaration of imports of components for the assembly of the carmaker's luxury Carnival minivan, the notice showed. In a statement to Reuters, Kia India said it made "a detailed response, supported by comprehensive evidence and documentation to substantiate" its stand and the authorities were still reviewing the matter. Kia India is committed to complying with all regulations and has "consistently cooperated with" authorities, it added. India's finance ministry and customs officials did not respond to Reuters queries. In its 432-page notice, the government said tax authorities found Kia's Carnival "car model was being imported in parts or components in separate lots" via different ports, with the "intent to discharge lesser customs duty". Kia devised the strategy to ensure the imports "could not (be) detected by customs," it added in the notice, issued by a customs commissioner in the southern city of Chennai. Two sources said Kia's case was similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in "completely knocked down" or CKD form in a single shipment, instead shipping separate parts over days, making them eligible
A Mighty Earth report based on a coalition investigation conducted from 2018 to 2024 said steel used by Hyundai and Kia came from companies linked to human-rights and environmental violations in Brazil and Mexico. The report named Ternium and Vale; Kia was invited to respond but had not responded, according to the publisher.
A new report published by Mighty Earth, based on an investigation carried out by a coalition of organizations between 2018 and 2024, reveals that the steel used by Hyundai and Kia Motors comes from companies linked to human rights and environmental violations in Brazil and Mexico.
On November 27, 2020, NHTSA announced a consent order with Kia Motors America, assessing that Kia’s recalls of vehicles with Theta II engines were untimely and that it inaccurately reported some information. Kia’s $70 million penalty included $27 million upfront, $16 million for safety measures and $27 million deferred, subject to conditions.
The consent orders reflect the agency’s assessment that both Hyundai and Kia conducted untimely recalls of over 1.6 million vehicles equipped with Theta II engines, and inaccurately reported certain information to NHTSA regarding the recalls.
Jobs to Move America sued Kia and Hyundai in California, alleging their U.S. operations benefited from child, migrant and prison labor and masked labor practices to secure public contracts. The complaint cited allegations of underpayment, unsafe conditions and a pregnant worker’s firing. Hyundai and Kia had not immediately commented; Hyundai said no supplier had used prison labor since September 2024.
A nonprofit organization Thursday sued Orange County-based carmakers Hyundai and Kia, alleging the companies have been violating state law against unfair competition with the use of exploited labor from children, immigrants and inmates.
Hyundai and Kia are accused of benefiting from the use of 'exploited' prison labour, child labour and migrant labour in their Alabama supply chain. Allegations include working conditions that have led to 'higher safety issues and death". Migrant were paid less than US citizens for the same job. When one worker became pregnant and asked for a less risky job, she was fired. A California-based non-profit filed a lawsuit claiming the companies violated California’s Unfair Competition Law by allowing unconscionable labour practices in their U.S. operations.
Soriano-Torres said the immigrants were paid less than U.S. citizens for the same job. (…) When she got pregnant and asked for a less risky job she was fired, she said.
CBS Atlanta reported that a federal judge approved an $11.5 million settlement covering more than 600 workers in a suit against Kia Georgia, Hyundai Mobis and two recruiting firms. The Mexican engineers alleged they were recruited for technical jobs but assigned factory-floor work and threatened with deportation. Defendants denied wrongdoing.
A federal judge has approved a class action lawsuit for a group of Mexican engineers who claimed they were recruited under false pretenses to work for Hyundai and Kia in Georgia.United States District Judge Leigh Martin May granted an $11.5 million settlement in the lawsuit, which targeted Hyundai Mobis, Kia Georgia, Georgia-based staffing agency SPJ Connect, and Georgia recruiting firm Allswell, earlier this month.According to the lawsuit, the plaintiffs were engineers and technical professionals from Mexico who had TN visas, a temporary visa allowing them to work in the United States in specific fields and industries.The plaintiffs claim that they were recruited to work for the auto companies for technical positions. Once they arrived in the U.S., however, they say they were caught in a "bait-and-switch scheme" with altered job responsibilities that put them to work on the factory floor.The workers allege they were threatened with deportation if they complained about their working conditions or tried to find another job."I want all workers, especially TN workers, to know that it is possible to take action against employers and win justice. All workers have rights, no matter which country we are from. We are human beings and deserve to be treated with respect. I hope this case and this settlement inspires others to speak out against labor violations," said Isidro Arellano, one of the plaintiffs named in the lawsuit.The settlement will cover more than 600 workers who have a TN visa.The defendants in the case have denied all wrongdoing. CBS News Atlanta has reached out to Kia Georgia and Hyundai Mobis for their response to the judge's order and will update the story if they choose to comment.
A 2023 New York Post report cited Mozilla Foundation’s criticism of automakers’ privacy practices and Kia’s policy language about sensitive personal information. Kia said collection depends on context and that it has never collected sex-life or sexual-orientation information from vehicles or consumers through Kia Connect Services.
Kia, the Korean auto giant, also acknowledged on its web site that it collects “sensitive personal information” such as “racial or ethnic origin,” “religious or philosophical beliefs,” “health, sex life or sexual orientation information,” and “genetic data.”
A settlement covers certain 2016–17 Kia Optimas and 2017 Sportages over allegations that defective automatic window regulators broke or malfunctioned; Kia denies the claims. Eligible owners or lessees may claim verified out-of-pocket repair costs, with mileage-based caps of $160–$400. The claim deadline reported by USA TODAY was Nov. 23, 2026.
According to the settlement site, the lawsuit alleges that certain vehicle makes had defects with their automatic window regulators, causing breakage and malfunctions. Kia denies the claims.
On June 18, 2025, Bloomberg Law reported that an Arkansas Kia dealership and the EEOC settled agency allegations of retaliation on behalf of a Black former salesman. Their joint filing seeking consent-decree approval said dealership supervisors must receive annual anti-discrimination and anti-retaliation training for two years; the evidence does not specify other settlement terms.
An Arkansas Kia dealership and the US Equal Employment Opportunity Commission have settled allegations of retaliation brought by the agency on behalf of a Black former salesman.
An Associated Press investigation published December 20, 2024, reported that Progressive Finishes, which employs Alabama work-release prisoners, lists Kia among automotive companies it has supplied. The article did not allege Kia directly employed prisoners or establish its knowledge of the labor arrangements; it described the supplier’s claimed customer list.
Best Western also said it does not participate in personnel matters at its independently owned and operated hotels. Hyundai said it knew some of its suppliers hired inmates for jobs but was not involved in the decision to do so. Honda said it was not aware of any business relationship with Progressive Finishes, which is common with companies and third-party suppliers.
OpenSecrets reports $8,279 in 2024-cycle contributions associated with Kia, ranking it 770th among 9,200 contributing organizations. The money came from individuals connected to the organization and their families—not Kia itself—and went entirely through individual contributions, including donations to candidates, party committees and leadership PACs.
We're ranking all of the profiled organizations whose PAC or employees and their families made contributions to candidates, party committees, other PACs, outside spending groups or 527s in the current cycle. For example, when it says that an organization ranks 115 of 16,000, that means that of the tens of thousands of organizations that we track, 16,000 of them have made contributions in the specified election cycle, and that this organization is the 115th-most generous giver.
The Daily Caller reported Kia was listed as a national sponsor of GLSEN’s Rainbow Library for the 2022–23 school year, which distributes LGBTQ-themed books to schools, and was later removed from the sponsor page. Kia denied sponsoring the program in 2023 or 2024; it did not explain the listing or removal.
Multinational automaker Kia has been removed from the donor page of a program distributing LGBTQ-themed books to children following a Daily Caller News Foundation report on the company’s ties to the nonprofit.
The DCNF exclusively reported Wednesday that Kia was prominently displayed as a co-sponsor of the Gay, Lesbian and Straight Education Network’s (GLSEN) Rainbow Library — a nonprofit initiative that provides participating teachers with children’s books pushing transgenderism and homosexuality onto kids as young as five. Kia has since been removed from the Rainbow Library’s sponsors page. (RELATED: EXCLUSIVE: Pediatric Medical Org Refused To Endorse Girls Sports Initiative That ‘Makes No Mention Of Trans Girls’)
Kia Autosport of Columbus collected food and monetary donations for Feeding the Valley Foodbank through its Drive Away Hunger event. WRBL reported the fifth annual drive in May 2025 and a month-long 2024 drive, timed to help stock the foodbank before summer, when children may face food insecurity.
Many children will be food insecure when school is let out for the summer. Kia Autosport of Columbus is collecting food items and monetary donations for Feeding the Valley.
6:00 PM LIVE: 5:45 PM LIVE: 5:00PM LIVE: Columbus, Ga. (WRBL)-Help support Feeding The Valley Foodbank and Kia’s ‘s Drive Away Hunger Event Help KIA Autosport Drive Away Hunger was throughout the entire month of May at Kia Autosport of Columbus… The event will be on going for the entire month of May where you can drop off non-perishable items at Kia Autosport of Columbus. Help to stock the shelves at Feeding The valley Foodbank just in time for the summer break, when many food insecure children need it the most. You can support this event during regular business hours, until closing of business at 7pm ET. 10,000 healthy, nutritious meals weekly our prepared at Feeding The Valley’s central warehouse and delivered to 28 locations in Muscogee County, GA, Dougherty County and Russell County, AL.