New York sues Hyundai, Kia over ‘explosion’ of car thefts

New York City has sued Hyundai Motor Co and Kia Corp, accusing the South Korean automakers of negligence and creating a public nuisance by selling vehicles that are too easy to steal.

The lawsuit against Hyundai and Kia over vehicle thefts has expanded to include the most populous city in the United States, joining other major cities such as Baltimore, Cleveland, Milwaukee, San Diego, and Seattle.

New York City filed a complaint in federal court in Manhattan, alleging that the automakers failed to install anti-theft devices called immobilizers on the majority of their vehicles between 2011 and 2022, making them an exception among automobile manufacturers.

New York City argued that this omission has resulted in an increase in vehicle theft, crime sprees, reckless driving, and public harm. The situation has been exacerbated by TikTok videos demonstrating how to steal cars without push-button ignitions and immobilizers.

According to the city, the number of reported stolen Hyundai and Kia vehicles doubled last year, and the theft rate experienced a “virtual explosion” with 977 reported thefts in the first four months of 2023, compared to 148 in the same period in 2022.

In contrast, thefts of BMW, Ford, Honda, Mercedes, Nissan, and Toyota vehicles have decreased this year.

The complaint seeks unspecified compensatory and punitive damages. Hyundai responded to the allegations by stating that it made immobilizers standard on all vehicles as of November 2021 and has implemented measures, including software upgrades, to reduce the risk of theft.

Kia also emphasized its anti-theft efforts and stated that it is collaborating with New York City law enforcement to combat car theft. Both automakers dismissed the lawsuit as lacking merit.

In February, Hyundai and Kia announced that they would offer software upgrades for up to 8.3 million U.S. vehicles without immobilizers. Last month, the automakers reached a $200 million settlement in a consumer class action lawsuit related to the thefts.

The settlement addressed approximately 9 million vehicle owners in the United States, with up to $145 million allocated to cover losses incurred due to stolen vehicles. The case is currently titled City of New York v Hyundai Motor America et al and is being heard in the U.S. District Court, Southern District of New York, with the case number 23-04772.