Attorney General Mayes Announces Multistate Settlement with Hyundai and Kia for their Sales of Vehicles Lacking Industry Standard, Anti-Theft Technology

PHOENIX – Attorney General Mayes announced today that Arizona, along with 34 other attorneys general, has reached a settlement with automobile manufacturers Hyundai and Kia over their sale of millions of vehicles nationwide that lacked industry-standard, anti-theft technology.  This failure resulted in an epidemic of car thefts and joy riding across the country that continues to threaten public safety.  Under the settlement, Hyundai and Kia have agreed to:

• Equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology;
• Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including vehicles that previously were only eligible for the companies’ software updates;
• Provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves; and
• Pay $4.5 million to the states to defray the costs of the investigation.

“Hyundai and Kia sold vehicles without basic, industry-standard anti-theft protections and Arizonans paid the price through increased thefts, damaged vehicles, and serious risks to public safety,” said Attorney General Mayes. “This settlement forces these companies to fix the problem, make consumers whole where possible, and ensure this never happens again.”

Many of Hyundai and Kia’s Vehicles Lacked Industry Standard Anti-Theft Technology.
 
Hyundai and Kia chose not include anti-theft “engine-immobilizer” technology in millions of their vehicles sold throughout the United States, including in Arizona.  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.
 
States Across the Country, Including Arizona, Have Experienced a Drastic Increase in Hyundai and Kia Vehicle Thefts.
 
Car thieves devised a quick and simple way to access these vehicles’ ignition cylinders and start these cars without a key, which quickly went viral, leading to a drastic, nationwide increase in Kia and Hyundai vehicle thefts.  Furthermore, many of the stolen vehicles were used in connection with other crimes and were involved in many traffic collisions, some fatal.  These actions represent a public safety crisis that has caused substantial and serious harm to our communities.
 
Hyundai and Kia’s Response to the Public Safety Crisis.
 
Hyundai and Kia were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update the software on many affected vehicles.  Hyundai and Kia also offered to install a zinc-reinforced ignition cylinder protector, but only for the roughly twenty percent of their vehicles that were ineligible for this software update. While the companies claimed that the software update blocked the viral theft method, the states alleged that the software update could be, and in fact was, easily bypassed by thieves.
 
The Settlement Makes Zinc-Reinforced Ignition Cylinder Protectors Available for All Affected Vehicles.
 
The Attorneys General pressed Hyundai and Kia to do more to protect consumers, and through this settlement, Attorney General Mayes has ensured that all consumers with eligible vehicles can have zinc-reinforced ignition cylinder protectors installed on their vehicle free of charge.
 
Eligible consumers will have one year from the date of notice from the companies to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships.

Attorney General Mayes urges consumers to schedule the installation of the zinc-reinforce ignition cylinder protector as soon as possible.

"Eligible Arizonans should visit their local Hyundai or Kia to have them install a cylinder protector as soon as possible," said Attorney General Mayes. "These anti-theft devices are designed to stop thieves from breaking the ignition cylinder to steal your vehicle, and as a result of this settlement, Hyundai and Kia must install them free of charge. 
 
In addition, consumers who previously installed the software update on their vehicles (or were scheduled to do so) but nonetheless experienced a theft or attempted theft of their vehicle on or after April 29, 2025, are eligible to file a claim for restitution for certain theft and attempted-theft related expenses.  

For more information about eligibility and how to submit a claim for compensation from Hyundai or Kia, please visit the following:

www.HKMultistateimmobilizersettlement.com
or contact Hyundai at 1-877-409-4173 and Kia at 1-844-655-4191.

This case was handled for the Arizona Attorney General's Office by Senior Litigation Counsel Alyse Meislik.

The attorneys general of Connecticut, Minnesota, and New Hampshire led the multistate settlement, and were assisted by California, Delaware, Illinois, Maryland, New Jersey, Nevada, and Washington.  Arizona was also joined in final settlement was also joined by Colorado, the District of Columbia, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, and Wisconsin.

If you believe you have been a victim of consumer fraud or unfair practices, you can file a consumer complaint by visiting the Attorney General’s website at www.azag.gov/consumer. If you need a complaint form sent to you, you can contact the Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the Phoenix and Tucson metro areas at (800) 352-8431.