Hawaiʻi, 34 states reach settlement with Hyundai and Kia over vehicle anti-theft technology

The Hawaiʻi Department of Commerce and Consumer Affairs Office of Consumer Protection, on behalf of the state of Hawaiʻi, along with 34 state attorneys general, reached a settlement with automobile manufacturers Hyundai and Kia over their sales of millions of vehicles nationwide that lacked industry-standard, anti-theft technology. 

According to the suit, 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 a series of measures aimed at improving vehicle security and compensating affected consumers.

As part of the agreement, the automakers will equip all future vehicles sold in the United States with industry-standard, engine immobilizer anti-theft technology. They will also 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.

The settlement requires Hyundai and Kia to provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves. The companies will also pay $4.5 million to the states to defray the costs of the investigation.

“This settlement ensures accountability and delivers meaningful corrective action and future protections for consumers,” said executive director of the Office of Consumer Protection, Mana Moriarty. “Automakers have a responsibility to incorporate commonly accepted safeguards into their vehicles. When manufacturers choose not to use it, they put consumers and communities at risk.”

State officials said Hyundai and Kia chose not to include anti-theft “engine-immobilizer” technology in millions of their vehicles sold throughout the United States, including in Hawaiʻi. 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 data cited by the states, 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.

The states alleged that 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, the states alleged some of the stolen vehicles were used in connection with other crimes and were involved in multiple traffic collisions, some fatal.

According to the states, 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 20% of their vehicles that were ineligible for this software update, according to the lawsuit. 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.

Through the settlement, the attorneys general said they secured greater protections requiring Hyundai and Kia to offer zinc-reinforced ignition cylinder protectors free of charge to all eligible consumers.

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. Consumers are urged to schedule the installation of the zinc-reinforce ignition cylinder protector as soon as possible.

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, visit the following: www.HKMultistateimmobilizersettlement.com.

The multistate settlement was led by the attorneys general of Connecticut, Minnesota and New Hampshire, with assistance from California, Delaware, Illinois, Maryland, New Jersey, Nevada and Washington. It was also joined by Arizona, Colorado, the District of Columbia, Georgia, Hawaiʻi, 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.