States reach settlement with Hyundai and Kia for selling vehicles without industry-standard, anti-theft technology

Dec. 16, 2025 (DENVER) — Attorney General Phil Weiser today announced that Colorado, along with a bipartisan group of attorneys general, has reached a settlement with automobile manufacturers Hyundai and Kia for 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.

“My office has worked with law enforcement partners to investigate and take down large-scale criminal car theft rings. 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,” said Attorney General Weiser. “For more than two years, we’ve pressed Hyundai and Kia to do more to prevent these thefts from occurring. As a result of today’s settlement, Hyundai and Kia are being held to account and will offer a free hardware fix for all affected vehicles that will thwart further thefts and protect public safety.”

Hyundai and Kia chose not to include anti-theft engine-immobilizer technology in millions of their vehicles sold throughout the United States, including in Colorado. 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. Hyundai and Kia, thus, lagged industry standards.

Car thieves devised a quick and simple way to access these vehicles’ ignition cylinder and start these cars without a key. This method quickly went viral, leading to a drastic increase in Kia and Hyundai vehicle thefts throughout the nation. Not only did the number of thefts explode, but many of the vehicles were used in connection with other crimes and many traffic collisions.

Hyundai and Kia were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update the software on most of the affected vehicles. Hyundai and Kia also offered to install a zinc-reinforced ignition cylinder protector, but only for roughly 20% of their vehicles that were ineligible for this software update. While the companies claimed that the software update was effective at preventing the viral theft method, the states alleged that the software update could be, and was, easily bypassed by thieves.

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 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, of which the Colorado Attorney General’s Office will receive $91,154 to be used for consumer fraud or antitrust enforcement, consumer education, or efforts to advance the public welfare.

Consumers with eligible vehicles can have zinc-reinforced ignition cylinder protectors, which prevent thieves from accessing the ignition assembly, installed on their vehicle free of charge. Eligible car owners will be notified by the companies that they will have one year from the date of the notice to make an appointment to have the zinc-reinforced ignition cylinder protector installed at their local Hyundai or Kia authorized dealerships.

Furthermore, car owners who previously installed the software update on their vehicles but 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, please visit the following:

States that joined the final settlement 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.

Read a copy of the executed settlement with Hyundai and Kia (PDF).

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Media Contact:
Lawrence Pacheco
Chief Communications Officer
(720) 508-6553 office
lawrence.pacheco@coag.gov