Attorney General James Secures $9 Million from Hyundai and Kia for Failing to Protect Cars Against Theft

 

Hyundai and Kia Failed to Install Proper Anti-Theft Technology on New Cars, Leading to Thefts, Injuries, and Deaths

New York Attorney General Letitia James today joined a bipartisan coalition of 35 other attorneys general in securing up to $9 million and critical reforms from car manufacturers Hyundai and Kia for failing to install proper anti-theft technology in their vehicles. Without this technology, Hyundai and Kia vehicles were vulnerable to thieves, leading to a spike in vehicle thefts across the country that destroyed cars and public property, threatened public safety, and resulted in injuries and deaths. Under the settlement, Hyundai and Kia will pay up to $4.5 million to consumers whose cars were recently stolen or damaged, pay an additional $4.5 million in penalties to the states, and take a range of measures to protect customers’ vehicles from theft.

“Hyundai and Kia’s reckless decision to forgo anti-theft measures led to a wave of car thefts that had deadly consequences,” said Attorney General James. “No one should have to fear for their lives on the road, and car companies have a responsibility to protect their customers from basic safety flaws. This settlement ensures Hyundai and Kia owners will be able to protect their cars at no cost, and I encourage all New Yorkers whose cars may be vulnerable to take these important anti-theft measures.”

Hyundai and Kia vehicles manufactured between 2011 and 2022 were vulnerable to theft because their ignition switches could be easily bypassed and they lacked engine immobilizers, an industry standard anti-theft technology. These vulnerabilities allowed thieves to easily hotwire the vehicles within minutes. Videos detailing how to easily steal Hyundai and Kia cars went viral online, with thieves using common tools like screwdrivers and USB cables to turn on and steal the cars.

As a result of Hyundai and Kia failing to install proper anti-theft technology, car thefts surged in communities throughout New York. The number of Hyundai and Kia thefts in New York City doubled from 2021 to 2022. In the first four months of 2023, the city saw 977 car thefts, up from 148 in the same period the year prior. In the first half of 2023, Monroe County saw more than 1,400 stolen Kias and Hyundais. In Syracuse, more than half of the cars stolen in the first seven months of 2023 were Kias or Hyundais.

Stolen Kias and Hyundais were linked to deadly car crashes and other crimes across New York and the nation. In July 2023, a 16-year-old driving a stolen Hyundai collided with a Jeep in Washington Heights, killing a 15-year-old and a 17-year-old in the Hyundai. In Syracuse, a stolen Kia and a stolen Hyundai were linked to the fatal shooting of two teenagers in September 2023.

Hyundai and Kia were slow to respond to the crisis, waiting until 2023 to launch a service campaign to update the software on many affected vehicles. Hyundai and Kia also offered to install zinc sleeves that can be fitted over the ignition cylinder of vulnerable cars to protect them from theft, but only for the roughly twenty percent of their vehicles that were ineligible for the software update. While the companies claimed that the software update blocked the viral theft method, Attorney General James and the coalition allege that the software update could be, and was, easily bypassed by thieves.

The settlement secured by Attorney General James and the coalition requires Hyundai and Kia to equip all future vehicles with engine immobilizers to prevent theft. The car companies must also provide zinc ignition cylinder sleeves at no cost to consumers through their local dealerships and continue to publicize the availability of all anti-theft measures for consumers for the next five years.

Hyundai and Kia will also pay $4.5 million in penalties to the coalition of states. New York is expected to receive over $220,000 from the settlement. In addition, consumers who previously installed the software update on their vehicles, or were scheduled to do so, but experienced a theft or attempted theft of their vehicle after April 29, 2025, are eligible to file a claim for restitution. Consumers can visit the settlement website for more information about the claims process.

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