State reaches deal with Hyundai and Kia over missing anti-theft features

Colorado and National Attorneys General Reach Settlement with Hyundai and Kia

On Tuesday, December 16, Colorado Attorney General Phil Weiser announced that the state, along with attorneys general from across the country, has reached a significant settlement with Hyundai and Kia. This agreement addresses the sale of millions of vehicles that lacked industry-standard anti-theft technology, which led to a surge in car thefts and joyriding.

According to the Attorney General’s Office, the absence of this technology resulted in an epidemic of vehicle thefts that continues to threaten public safety. Weiser emphasized that these thefts are not just numbers but represent real harm to communities.

“My office has worked with law enforcement partners to investigate and take down large-scale criminal car theft rings,” said Weiser. “Hyundai and Kia models continue to be among the most stolen vehicles in Colorado. These thefts are not just numbers – they represent a threat to public safety that has caused serious harm to our neighbors and communities.”

Weiser added that for over two years, his office has pushed Hyundai and Kia to do more to prevent these thefts. As a result of today’s settlement, the companies will be held accountable and will offer a free hardware fix for all affected vehicles, which will help prevent further thefts and protect public safety.

The Issue with Anti-Theft Technology

Weiser explained that Hyundai and Kia chose not to include anti-theft engine-immobilizer technology in millions of their vehicles sold throughout the U.S., including in Colorado. An engine immobilizer prevents starting a vehicle’s engine without the vehicle’s smart key.

According to one report, in 2015, only 26% of vehicles Kia and Hyundai sold in the U.S. were equipped with engine immobilizers, compared to 96% of vehicles sold by other manufacturers. Car thieves quickly discovered a simple method to access the vehicle’s ignition cylinder and start cars without the keys. This method spread rapidly and led to a drastic increase in Kia and Hyundai vehicle thefts.

In addition to the increase in thefts, many of these vehicles were used in connection with other crimes and traffic crashes. The Attorney General’s Office also noted that Kia and Hyundai were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update software on most of the affected vehicles. They offered a zinc-reinforced ignition cylinder, though only for roughly 20% of vehicles that were ineligible for the software update.

While the companies claimed the software update was effective, states alleged that it could and was easily bypassed by thieves.

Terms of the Settlement

Under the settlement, several key actions will be taken:

• 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 those previously eligible only for software updates.
• Provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves.
• Pay $4.5 million to the states to defray the costs of the investigation, with Colorado’s Attorney General’s Office receiving $91,154 to be used for consumer fraud or antitrust enforcement, consumer education, or efforts to advance the public welfare.

“We encourage consumers with eligible vehicles to have zinc-reinforced ignition cylinder protectors installed on their vehicle free of charge,” said Weiser. Eligible car owners will be notified by the companies and will have one year from the date of the notice to make an appointment to have the protector installed at their local Hyundai or Kia authorized dealerships.

Additionally, car owners who previously installed the software update on their vehicles but experience a theft or attempted theft on or after April 29, 2025, are eligible to file a claim for restitution for certain theft and attempted theft expenses.

Participating States

The states that joined the lawsuit include Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin.

For more information, visit the links provided.