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Illinois Attorney General
Kwame Raoul

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ATTORNEY GENERAL RAOUL ANNOUNCES HYUNDAI, KIA SETTLEMENT FOR SALES OF VEHICLES LACKING INDUSTRY-STANDARD, ANTI-THEFT TECHNOLOGY

December 16, 2025

Bipartisan, Multistate Settlement Offers Free Hardware Fix for Affected Vehicles to Help Prevent Thefts, Protect Public Safety

 Chicago – Attorney General Kwame Raoul, as part of a bipartisan coalition of 35 attorneys general, reached a settlement with automobile manufacturers Hyundai and Kia over their sale of millions of vehicles nationwide that lacked industry-standard, anti-theft technology. This failure resulted in a car theft crisis that continues to threaten public safety. 

 “This settlement will ensure consumers can effectively protect their vehicles from theft while protecting communities in Illinois and across the country,” Raoul said. “I urge all affected consumers to schedule the installation of the proper anti-theft technology or file a theft compensation claim as soon as possible. I stand committed to protecting consumers and our communities, and I’m pleased that this settlement will help to prevent further thefts.”

 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 were damaged by theft.
  • Pay $4.5 million to the states to defray the costs of the investigation.

 From approximately 2011 to 2022, Hyundai and Kia failed to equip certain vehicle models with anti-theft immobilizers, which prevent the vehicle from operating without a key or key fob. In 2022 alone, there were over 7,000 Hyundai and Kia thefts in Chicago, which account for 10% of all registered Kia vehicles and 7% of all registered Hyundai vehicles in the city. Raoul joined a coalition in 2023 calling for the companies to take swift and comprehensive action.

 Raoul and the attorneys general explained that Kia and Hyundai chose not to include anti-theft immobilizers as standard equipment on several vehicle models sold in the United States, despite including the immobilizers on the same models sold in other countries. As a result, the number of thefts and the use of stolen vehicles to commit other crimes in the U.S. significantly increased.

 In addition to dealing with the risk of stolen vehicles, Hyundai and Kia owners also faced the threat of being unable to insure their vehicles. According to the coalition, several major insurance companies refused to insure the Hyundai and Kia models most susceptible to theft.

 Hyundai and Kia slowly responded to the crisis by launching 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 approximate 20% of the vehicles that were ineligible for this software update. While the companies claimed the software update blocked the viral theft method, the states alleged that the software update was easily bypassed by thieves.

 Raoul explained this settlement ensures all consumers with eligible vehicles can have zinc-reinforced ignition cylinder protectors installed on their vehicle free of charge. 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.

 In addition, consumers who previously installed the software update on their vehicles, or were scheduled to do so, but still 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, please visit the following: www.HKMultistateimmobilizersettlement.com

 Joining Raoul in the multistate settlement are the attorneys general of Arizona, California, Colorado, Connecticut, the District of Columbia, Delaware, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Jersey, New Hampshire, New Mexico, New York, Nevada, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington and Wisconsin.