Hyundai and Kia Agree to Nationwide Settlement Over Anti-Theft Technology Deficiencies

Attorney General Anthony G. Brown announced that Maryland, along with 34 other states and the District of Columbia, has reached a significant settlement with Hyundai and Kia. The agreement addresses the manufacturers’ widespread sale of millions of vehicles lacking standard anti-theft technology, a deficiency that has contributed to a surge in car thefts and posed risks to public safety across the country. The settlement mandates that both companies implement measures to protect consumers and enhance vehicle security moving forward.

As part of the agreement, Hyundai and Kia will equip all future vehicles sold in the United States with industry-standard engine immobilizer anti-theft technology. This technology prevents vehicles from being started without the presence of the correct “smart” key, which contains a unique electronic security code. Reports indicate that in 2015, a mere 26% of Hyundai and Kia vehicles sold in the U.S. were equipped with engine immobilizers, significantly lower than the 96% reported by other manufacturers. This gap in security allowed thieves to develop a method to bypass ignition systems without a key, a technique that rapidly disseminated and led to a dramatic increase in thefts of these specific car models. Many of these stolen vehicles have subsequently been involved in other criminal activities, as well as traffic accidents, some of which have been fatal.

The settlement also requires Hyundai and Kia to offer free hardware fixes for affected vehicles. This includes providing zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles. This measure is available to owners of vehicles that previously only qualified for software updates. The companies will also provide up to $4.5 million in restitution to eligible consumers whose vehicles have been damaged by thieves. Furthermore, Hyundai and Kia will collectively pay $4.5 million to the participating states to help cover the costs associated with their investigation into the matter.

Attorneys general alleged that Hyundai and Kia were slow to address the escalating crisis, taking years to initiate a service campaign for software updates on many affected vehicles. While the companies claimed their software updates would prevent the viral theft method, investigators asserted that these updates could be easily circumvented by thieves. This settlement ensures that all eligible Maryland consumers can have the free zinc-reinforced ignition cylinder protectors installed on their vehicles. Consumers have one year from the date they are notified by the companies to schedule this installation at an authorized Hyundai or Kia dealership. Attorney General Brown strongly advises eligible vehicle owners to schedule this appointment as soon as possible.

Consumers who previously had the software update installed or were scheduled for it, but still experienced a theft or attempted theft of their vehicle on or after April 29, 2025, may be eligible to file a claim for restitution. This compensation can cover certain expenses related to theft and attempted theft. Detailed information regarding eligibility and the process for submitting a claim can be found at http://www.HKMultistateimmobilizersettlement.com. The Maryland Attorney General’s Office played a key role in leading the investigation as part of an Executive Committee.

Article by Mel Anara, based upon information from the Maryland Attorney General.

---