On Tuesday, December 16, the Attorney General of Pennsylvania, Dave Sunday, announced that Pennsylvania and 34 other states’ attorneys general have reached a settlement with South Korean automakers Hyundai and Kia to address the issue of millions of vehicles across the United States not being equipped with industry-standard anti-theft technology. This problem has led to numerous car theft incidents, posing a continuous threat to public safety.
According to the settlement agreement, Hyundai and Kia have agreed to comply with industry standards in their production processes going forward and provide free installation of anti-theft devices for existing vehicles that are lacking such technology. The two companies have also agreed to pay a maximum of $9 million in compensation to the states and their consumers.
Attorney General Sunday stated, “This settlement agreement is an important step in providing peace of mind for Pennsylvania residents who should not have to worry about their vehicles being stolen when they lock them. I encourage all affected Hyundai and Kia owners in Pennsylvania to schedule the free maintenance service to enhance the theft protection of their vehicles.”
Qualified vehicle owners will receive notification in early 2026 and must schedule an appointment with a local authorized Hyundai and Kia dealer by the end of March 2027 to have the “zinc-reinforced ignition cylinder protector” installed.
If a vehicle owner has installed (or arranged for installation) software updates on their vehicle, but the vehicle is stolen or an attempted theft occurs after April 29, 2025, they are eligible to seek compensation. For more information on compensation, please visit the website: www.HKMultistateimmobilizersettlement.com.
Under the terms of the settlement, specific vehicle models are eligible for compensation. Owners can check their eligibility by entering their vehicle identification number (VIN) on the settlement website. If a vehicle is deemed a total loss, owners can claim up to $4,500 in compensation; for partial losses, the maximum compensation is $2,250.
The deadline to apply for compensation is March 31, 2027, and the compensation funds will be distributed on a “rolling” basis until exhausted.
This case arose in recent years as car thieves exploited a simple method to bypass the ignition systems of certain Hyundai and Kia models. Subsequently, thieves could start the vehicles without a key, raising concerns about public safety and vehicle security nationwide.
Sunday pointed out that the two automakers initially responded slowly in protecting consumers, which was a key reason for the collective action taken by various states.
Sunday, together with the attorneys general of Minnesota and New Hampshire, led the negotiations of the settlement agreement. Attorneys general from California, Delaware, Illinois, Maryland, New Jersey, Nevada, and Washington also participated in this agreement.
Ultimately, attorneys general from Arizona, Colorado, the District of Columbia, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Rhode Island, South Dakota, Vermont, and Wisconsin also joined the settlement agreement.