California Attorney General Rob Bonta, along with a bipartisan group of 36 attorneys general, has announced a settlement with Hyundai Motor Company and Kia America over the sale of vehicles lacking standard anti-theft technology. The agreement addresses allegations that the automakers violated federal motor vehicle safety standards and California’s Unfair Competition Law by selling cars without engine immobilizers or adequate ignition security from 2011 to 2022.
“Today, my office announced a settlement with Kia and Hyundai for failing to equip millions of cars with industry-standard, anti-theft technology. This led to an epidemic of car thefts that threatened public safety and disrupted the lives of Californians — and it was illegal,” said Attorney General Bonta. “My office stepped in, and as part of our settlement, Hyundai and Kia will install a free security update and further compensate eligible consumers who had their cars damaged by thieves. Cars are often one of the largest purchases a family will ever make — Californians shouldn’t have to worry that manufacturers are cutting corners that could put their purchase at risk.”
The lack of engine immobilizers made certain Hyundai and Kia models easy targets for theft, as these devices prevent engines from starting without an authorized key. While most new vehicles during this period included such technology, many Hyundai and Kia models sold in the U.S. did not, even though versions sold in Canada and Europe were equipped with immobilizers. Videos posted on social media demonstrated how easily these cars could be stolen using simple tools, which contributed to increased theft rates nationwide.
In Los Angeles alone, thefts involving Hyundai and Kia vehicles rose by about 85% in 2022 compared to previous years. These brands accounted for approximately 20% of all stolen cars in Los Angeles that year, up from 13% in 2021. By 2024, several Hyundai and Kia models ranked among the most frequently stolen vehicles across the country.
The widespread thefts created additional burdens for law enforcement agencies in California. Many stolen vehicles were involved in other crimes or traffic accidents—some fatal—and owners faced costs related to repairs, towing, insurance deductibles, alternative transportation, and diminished resale values.
Hyundai and Kia began offering software updates aimed at preventing these thefts only in 2023. However, state officials argued that these updates were insufficient because they could be bypassed by thieves.
Under the terms of the proposed settlement—which is pending court approval—Hyundai and Kia have agreed to take several actions:
– Equip all future U.S.-sold vehicles with engine immobilizer anti-theft systems.
– Offer free zinc-reinforced ignition cylinder protectors to owners or lessees of eligible vehicles.
– Provide up to $4.5 million in additional restitution for consumers whose cars were damaged by thieves.
– Pay $4.5 million to participating states to help cover investigation costs.
Eligible vehicle owners will receive notifications from Hyundai or Kia about scheduling installation appointments for the ignition cylinder protector at authorized dealerships within one year from notice.
Consumers who experienced theft or attempted theft after receiving (or being scheduled for) a software update on or after April 29, 2025 may file claims for compensation covering certain expenses related to those incidents. This compensation is separate from payments offered through private class action settlements against the companies.
For more information about eligibility requirements or submitting claims under this settlement agreement, consumers can visit www.HKMultistateimmobilizersettlement.com.
Attorney General Bonta worked alongside attorneys general from states including Connecticut, Minnesota, New Hampshire, Delaware, Illinois, Maryland, New Jersey, Nevada, Washington, Arizona, Colorado, Florida, 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 Wisconsin as well as the District of Columbia.