New York City sues Hyundai, Kia over vehicle thefts

The most populous US city joined several other major cities that have sued Hyundai and Kia over the thefts. PHOTO: AFP

NEW YORK - New York City on Tuesday sued Hyundai Motor and Kia, accusing the South Korean automakers of negligence and creating a public nuisance by selling vehicles that are too easy to steal.

The most populous US city joined several other major cities that have sued Hyundai and Kia over the thefts, including Baltimore, Cleveland, Milwaukee, San Diego and Seattle.

Hyundai and Kia did not immediately respond to requests for comment after market hours.

In a complaint filed in Manhattan federal court, New York faulted the automakers for having between 2011 and 2022 failed to install anti-theft devices called immobilisers on most of their cars, making them “nearly unique” among automobile manufacturers.

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

The city said the number of reported stolen Hyundais and Kias 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 period in 2022.

In contrast, the city said thefts of BMW, Ford, Honda, Mercedes, Nissan and Toyota vehicles have fallen this year.

The complaint seeks unspecified compensatory and punitive damages.

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

Kia had no immediate comment.

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

In May, Hyundai and Kia reached a US$200 million (S$335 million) settlement of a consumer class action over the thefts.

That case covered about nine million US vehicle owners and included as much as US$145 million to cover losses for stolen vehicles, lawyers for the owners said. REUTERS

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