OLYMPIA, WA — Hyundai and Kia have agreed to provide restitution to consumers and make changes to vehicle security after a multistate settlement addressing the automakers’ failure to equip millions of vehicles with industry-standard anti-theft technology, according to an announcement from Washington Attorney General Nick Brown.
The settlement, reached by Brown and attorneys general from 35 other states, resolves claims that Hyundai and Kia sold vehicles without engine-immobilizer technology, a standard feature designed to prevent engines from starting without a programmed key. State officials say the omission contributed to a nationwide surge in vehicle thefts, some of which were linked to additional crimes and fatal traffic crashes.
Under the agreement, Hyundai and Kia will equip all future vehicles sold in the United States with industry-standard engine immobilizers. The companies will also offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles, including some vehicles that previously only qualified for software updates.
In addition, the automakers will provide up to $4.5 million in restitution to eligible consumers whose vehicles were damaged during thefts or attempted thefts and will pay $4.5 million to participating states to help cover the cost of the investigation.
“Security is a key piece for families looking to buy a vehicle, but Hyundai and Kia spent years selling people cars that lacked the industry’s standard protections,” Brown said in a prepared statement. He added that consumers were repeatedly put at risk as a result of the automakers’ decisions.
According to the Attorney General’s Office, only about 26 percent of Hyundai and Kia vehicles sold in the United States in 2015 were equipped with engine immobilizers, compared to 96 percent of vehicles sold by other manufacturers. Thieves later exploited the vulnerability by accessing ignition cylinders and starting vehicles without keys, often sharing videos of the method on social media .
Although Hyundai and Kia launched a software update campaign in 2023, state officials say the fix was easily bypassed and did not fully address the problem.
Eligible consumers will be notified by the companies and will have one year from the date of notice to schedule installation of the ignition cylinder protector at authorized dealerships. Consumers who installed the software update but still experienced a theft or attempted theft on or after April 29, 2025, may also be eligible to file claims for certain expenses related to those incidents .
Connecticut, Minnesota, and New Hampshire led the multistate settlement, with participation from Washington and more than 30 other states and jurisdictions.
