Hyundai and Kia have agreed to a settlement with Vermont and 35 other states over the sale of vehicles lacking standard anti-theft technology. The agreement requires the automakers to pay approximately $60,000 to Vermont, install free zinc-reinforced ignition-cylinder protectors for eligible vehicles, and provide restitution to consumers whose cars were damaged by theft.
Attorney General Charity Clark said, “I am pleased to announce that Hyundai and Kia will take corrective action as a result of this multistate settlement, providing a free fix for their customers, as well as pay restitution to customers whose cars were damaged. It’s important to me that we protect consumers, the marketplace, and public safety in our communities, and this settlement will do just that.”
The case focused on Hyundai’s and Kia’s decision not to include engine-immobilizer technology—a feature that prevents vehicle engines from starting without a “smart” key—in millions of vehicles sold across the United States. In 2015, only about one-quarter of Hyundai and Kia vehicles sold in the U.S. had immobilizers installed compared with nearly all models from other manufacturers.
Under the terms of the settlement, Hyundai and Kia have also committed to equipping all future vehicles sold in the United States with industry-standard anti-theft technology.
Consumers who are eligible for repairs or restitution will be notified by Hyundai or Kia. They will have one year from notification to schedule installation of the new ignition cylinder protector at authorized dealerships. Attorney General Clark encouraged affected consumers to arrange for installation promptly.
The multistate action was led by attorneys general from Connecticut, Minnesota, and New Hampshire with support from several other states including California, Delaware, Illinois, Maryland, New Jersey, Nevada, Washington and others. The final agreement included participation from Arizona through Wisconsin as well as the District of Columbia.
A copy of the settlement is available on our website.
