New York City has filed a lawsuit against Hyundai Motor Co and Kia Corp, accusing the South Korean automakers of negligence and creating a public nuisance by selling vehicles that are easily stolen.
Failure to Install Anti-Theft Devices
The city claims that the automakers failed to install anti-theft devices called immobilizers on most of their cars from 2011 to 2022, which sets them apart from other manufacturers. According to New York, this has led to a surge in vehicle theft, crime sprees, reckless driving, and public harm, exacerbated by TikTok videos demonstrating how to steal cars without push-button ignitions and immobilizers.
The city highlights a significant increase in reported stolen Hyundais and Kias, with the number doubling last year and a notable rise in thefts in the first four months of 2023. In contrast, thefts of vehicles from other manufacturers, such as BMW, Ford, Honda, Mercedes, Nissan, and Toyota, have reportedly decreased this year. New York City is seeking unspecified compensatory and punitive damages through the lawsuit.
Measures taken by Automaker to Reduce Theft Risk
Hyundai stated that it made immobilizers standard on all vehicles in November 2021 and has implemented measures, including a software upgrade, to reduce the risk of theft. Kia also mentioned its anti-theft efforts and expressed its collaboration with New York City law enforcement to combat car thefts, dismissing the lawsuit as meritless.
In February, Hyundai and Kia announced plans to offer software upgrades for approximately 8.3 million U.S. vehicles that lack immobilizers. Additionally, the automakers reached a $200 million settlement in a consumer class action related to the thefts, covering about 9 million U.S. vehicle owners and providing compensation for stolen vehicles.
The case, titled City of New York v Hyundai Motor America et al, is being heard in the U.S. District Court, Southern District of New York, with the case number 23-04772.
