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Hyundai and Kia face lawsuit in New York for allegedly producing cars that are easily stolen.

New York sues Hyundai and Kia, alleging their cars are easy to steal

New York sues Hyundai and Kia, alleging their cars are easy to steal

South Korean automakers Hyundai and Kia are facing a “public nuisance” lawsuit filed in Manhattan federal court by New York City officials. The companies are accused of failing to install anti-theft devices which led to a rise in car thefts after a viral TikTok challenge in 2021 prompted young teens to steal cars off the streets by hot wiring them with a USB cable. According to city officials, Chicago saw an 800% year-on-year jump in thefts of Hyundai and Kia cars in August 2022, while Los Angeles saw an 85% rise. In November 2021, Hyundai made immobilizers standard on all vehicles, according to a response sent to news outlets.

The complaint accuses the companies of creating a “public nuisance” by prioritising profits over safety and keeping engine immobilisers as an optional safety feature. The city is seeking compensation for economic losses but has not yet specified a figure.

New York City is the latest in a series of American cities, including Baltimore, St. Louis, Milwaukee, San Diego and Seattle, to take legal action against the two automakers over the alleged failure to install anti-theft features.

FAQs:

What is the lawsuit filed against Hyundai and Kia?

The lawsuit filed by New York City officials accuses Hyundai and Kia of creating a “public nuisance” by failing to install anti-theft devices in their vehicles, leading to a rise in car thefts after a viral TikTok challenge.

Why did Hyundai and Kia not install anti-theft devices?

According to the complaint, the automakers prioritized profits over safety by not including engine immobilizers as a standard safety feature and keeping it optional.

What are the consequences of the alleged failure to install anti-theft devices?

New York City officials accused the companies of enabling “this spiraling epidemic” of car thefts, which led to a “virtual explosion of thefts of Kias and Hyundais” in 2023. The city is seeking compensation for economic losses but has not yet specified a figure.

What is the response of Hyundai to the lawsuit?

Hyundai highlighted a response sent to news outlets where it said it made immobilizers standard on all vehicles from November 2021 and had taken measures to reduce the threat of thefts.

Are there any other American cities that took similar measures against Hyundai and Kia?

New York City is the latest in a series of American cities, including Baltimore, St. Louis, Milwaukee, San Diego and Seattle, to take legal action against the two automakers over the alleged failure to install anti-theft features.

New York sues Hyundai and Kia, alleging their cars are easy to steal
New York sues Hyundai and Kia, alleging their cars are easy to steal

Hyundai and Kia sued by New York for producing cars that are easily stolen

South Korean automakers Hyundai and Kia are facing a lawsuit filed in Manhattan federal court for causing a “public nuisance.” New York City is accusing the companies of failing to install devices that prevent cars from being stolen, after a social media challenge prompted young teens to steal vehicles off the street by hot wiring them using a USB cable.

The viral TikTok challenge started in 2021 and spurred a rise in thefts of Hyundai and Kia cars. Chicago saw an 800% year-on-year increase in the theft of these cars for the month of August 2022, according to officials. Los Angeles officials also saw an 85% jump compared with the year before.

“In electing profits over safety and deviating from industry norms by not including engine immobilizers as a standard safety feature, Defendants created and maintained a public nuisance,” the city said in the filing made in the U.S. District Court in the Southern District of New York. New York accused the two companies of enabling “this spiraling epidemic” of car thefts.

Highlighting the companies’ “failure” to install an anti-theft device, the complaint accused them of having “opened the floodgates to vehicle theft, crime sprees, reckless driving, and public harm.” Shares of South Korea’s largest automakers fell on Wednesday. Hyundai Motors slid more than 2%, while Kia Corp dropped by over 5%.

New York City in its filing said that the thefts are still continuing, and that it is seeking “compensation for the economic losses,” without specifying an exact figure. Around 977 Hyundai and Kia vehicles were reported stolen in the first four months of the year, according to the filing.

“This represents a roughly 660% increase in thefts of Kia and Hyundai vehicles as compared to those same months in 2022 when there were only 148 such thefts,” it said.

Hyundai and Kia last month agreed to a $200 million consumer class-action lawsuit settlement, according to Reuters, which covered approximately 9 million car owners and included up to $145 million for out-of-pocket losses for customers.

New York City joins a number of cities that took similar measures against the two automakers, including Baltimore, St. Louis, Milwaukee, San Diego, and Seattle. Baltimore Mayor Brandon M. Scott said in May, “These cost-cutting measures employed by Hyundai and Kia at the expense of public safety are unacceptable.”

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