Attorney General Dan Rayfield announced today that Oregon, along with 35 other 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. 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 the companies’ software updates;
- Provide up to $4.5 million in restitution to eligible consumers whose cars are damaged by thieves; and
- Pay $4.5 million to the states to defray the costs of the investigation.
“For too many Oregon families, this wasn’t just about a missing car — it was about a compromised sense of safety,” said Attorney General Rayfield. “When vehicles are easy targets, neighborhoods pay the price. This settlement is about fixing what should have been done right the first time and making sure Oregonians aren’t left vulnerable because companies cut corners. Hyundai and Kia will now provide real, physical protections at no cost, and that means fewer thefts, safer streets, and some peace of mind returned to people who were unfairly put at risk.”
Many of Hyundai and Kia’s Vehicles Lacked Industry Standard Anti-Theft Technology.
Hyundai and Kia chose not include anti-theft “engine-immobilizer” technology in millions of their vehicles sold throughout the United States, including in Oregon. 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 behind industry standards.
States Across the Country, Including Oregon, have Experienced a Drastic Increase in Hyundai and Kia Vehicle Thefts.
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 were involved in many traffic collisions, some fatal. These are not just numbers; they represent a public safety crisis that has caused substantial and serious harm to our neighbors and communities.
Hyundai and Kia’s Response to the Public Safety Crisis.
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 twenty percent 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 in fact was, easily bypassed by thieves.
The Settlement Secures Availability of Zinc-Reinforced Ignition Cylinder Protectors for All Affected Vehicles.
The attorneys general pressed Hyundai and Kia to do more to protect consumers and their communities. As a result, Attorney General Rayfield has ensured that consumers with eligible vehicles can have zinc-reinforced ignition cylinder protectors, which prevents thieves from accessing the ignition assembly, installed on their vehicle free of charge.
Eligible consumers 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. Attorney General Rayfield urges consumers 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, please visit the following:
- For Hyundai – Visit www.HKMultistateimmobilizersettlement.com
- For Kia – Visit https://customercare.kiausa.com/SWLD or call (800) 333-4Kia (4542)
In this settlement, Attorney General Rayfield was joined by the attorneys general of Arizona, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Georgia, Hawaii, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Hampshire, New Jersey, Nevada, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington, and Wisconsin.
