New York City Sues Kia, Hyundai over Vehicle Thefts

Wed Jun 07 2023
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NEW YORK: New York City sued Hyundai Motor Co and Kia Corp, accusing the South Korean vehicle makers of negligence and creating a public nuisance by selling cars that are too easy to steal.

The most populous United States city joined many other top cities that have sued Hyundai and Kia over the thefts, including Milwaukee, Baltimore, Cleveland, San Diego and Seattle.

In a complaint filed in Manhattan federal court, New York faulted the automakers’ failure from 2011 to 2022 to install anti-theft devices called immobilisers on most of their vehicles, making them “nearly unique” among automobile manufacturers.

New York said this has “opened the floodgates to car theft, crime sprees, reckless driving, and public harm,” exacerbated by TikTok clips showing how to steal vehicles that lack push-button ignitions and immobilisers.

The city said the number of reported stolen Kias and Hyundais doubled last year, followed by a “virtual explosion of thefts” in the first four months of 2023 with 977 reported thefts, up from 148 in the same time in 2022.

In contrast, the city said thefts of BMW, Honda, Ford, Mercedes, Nissan and Toyota cars have fallen this year. The complaint seeks unspecified compensatory and punitive damages.

Hyundai said that it made immobilisers standard on all cars in November 2021, and has taken steps including a software upgrade to reduce the threat of thefts.

Kia also cited its anti-theft efforts and said it is working with New York City law enforcement to combat vehicle thefts. It called the city’s lawsuit “without merit.”

In February, Kia and Hyundai said they would offer software upgrades for as many as 8.3 million United States vehicles that lack immobilisers.

Last month, Kia and Hyundai reached a $200 million settlement of a consumer class action over the thefts.

lawyers for the owners said, that case covered about 9 million United States car owners, and included as much as $145 million to cover losses for stolen cars.

The case is City of New York v Hyundai Motor America et al, United States District Court, Southern District of New York, No. 23-04772.

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