Manufacturers to Pay Vermont $60,000 and Provide Restitution to Consumers
Vermont Business Magazine Attorney General Charity Clark today announced that Vermont and 35 other states have reached a settlement with automobile manufacturers Hyundai and Kia for their sale of millions of vehicles nationwide that lacked industry-standard, anti-theft technology.
Under the settlement, Hyundai and Kia have agreed to install free zinc-reinforced ignition-cylinder protectors, provide restitution to eligible consumers whose vehicles were damaged by theft, and pay approximately $60,000 to the State of Vermont. The manufacturers have also committed to equipping all future vehicles sold in the United States with this technology.
“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,” said Attorney General Clark. “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 settlement announced today is the result of a multistate action taken against Hyundai and Kia which chose not include anti-theft “engine-immobilizer” technology in millions of their vehicles sold throughout the United States, including in Vermont. 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.
Eligible consumers will be notified by the manufactures 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 Clark 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).
The multistate settlement was led by the attorneys general of Connecticut, Minnesota, and New Hampshire, with assistance by California, Delaware, Illinois, Maryland, New Jersey, Nevada, and Washington. The final settlement was also joined by Arizona, Colorado, the District of Columbia, Florida, Georgia, Hawaii, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Mississippi, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, and Wisconsin.
A copy of the settlement is available on our website.
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