Global Courant
New York City has filed a lawsuit against Hyundai and Kia, joining a host of other cities beset by a social media-fueled wave of car thefts following a flaw that left some car models highly susceptible to theft.
Viral how-to videos on TikTok and other sites show how to start the cars using just USB cables and a screwdriver. The reason is that some models sold by Hyundai and Kia in the US came without immobilizers, a standard feature on most cars since the 1990s that prevent the engine from starting unless the key is present.
The lawsuit, filed late Tuesday in U.S. District Court in the Southern District of New York, alleges that Hyundai Motor America and Kia America Inc. other automakers couldn’t keep up by not using immobilizer technology that prevented cars from being started without their keys.
“Hyundai and Kia’s business decisions to reduce costs and thereby increase profits by forgoing common anti-theft technology have resulted in an epidemic of thefts,” the lawsuit states.
The city claims the car thefts strain police resources and negatively impact public safety and emergency services.
The New York City Police Department reports that about 287 Kias were stolen last year, compared to about 119 in 2021. About 415 Hyundais were reported stolen in 2022, compared to 232 a year earlier. And the problem persisted, with an estimated 977 Hyundai and Kia vehicles reported stolen in the first four months of this year. Last year there were only 148 such thefts in the same months.
New York, the nation’s largest city by population, joins a growing list of cities going after the automakers in a string of thefts, including Baltimore, Cincinnati, Cleveland, Milwaukee, San Diego and Seattle.
New York City, which is seeking a jury trial, seeks an injunction to abate the public nuisance that Hyundai and Kia caused or contributed to, compensation for the economic losses suffered as a result of the nuisance and coercive measures.
Hyundai says it is committed to ensuring the quality and integrity of its products.
“A subset of Hyundai vehicles on the road in the US today – mainly ‘base trim’ or entry-level models – are not equipped with push-button ignitions and immobilizing anti-theft systems. It is important to clarify that an immobilizer is an anti-theft device and that these vehicles fully comply with federal anti-theft requirements,” the automaker said in a written statement.
Hyundai made immobilizers standard on all its vehicles from November 2021. The company also said it is speaking with the National Highway Traffic Safety Administration about the actions it is taking to help its customers.
“Lawsuits brought by municipalities against Kia are baseless. Like all Kia vehicles, these particular models are subject to and fully comply with the requirements set forth in applicable Federal Motor Vehicle Safety Standards, including FMVSS 114 which governs measures to protect against theft,” Kia said in a prepared statement.
The company said it is working with law enforcement in New York City to combat auto theft and the role social media has played in driving it.
“We remain committed to supporting our customers and vehicle security,” said Kia.
Last month, Hyundai and Kia reached a settlement to resolve a class action lawsuit following a spate of car thefts.
The settlement could be valued at $200 million and covers about 9 million 2011-2022 model year Hyundai and Kia vehicles in the U.S., the companies said at the time.
The settlement will provide cash compensation to customers who suffered theft-related losses or damage not covered by insurance, as well as reimbursement of deductibles, increased insurance premiums and other losses, Kia and Hyundai said.
A software upgrade will also be offered to eligible owners. For customers with vehicles that are not eligible for the software upgrade, the agreement provides reimbursement of up to $300 for anti-theft devices.
Kia and Hyundai have also given affected customers tens of thousands of free steering wheel locks through local law enforcement and direct shipments, the companies said.
That proposed settlement is expected to be reviewed in court for preliminary approval in July.
