New York City sues Hyundai, Kia over vehicle thefts By Reuters

By Jonathan Stempel

NEW YORK (Reuters) – New York City sued Hyundai Motor Co and Kia Corp on Tuesday, accusing the South Korean automakers of negligence and creating public nuisance by selling cars that are easy to steal.

America’s most populous city has joined several other major cities that have sued Hyundai and Kia for thefts, including Baltimore, Cleveland, Milwaukee, San Diego and Seattle.

In a complaint filed in Manhattan federal court, New York criticized automakers’ failure from 2011 to 2022 to install anti-theft devices called immobilizers on most of their cars, making them “nearly unique” among automakers.

New York said this “opened the floodgates to car thefts, crime, reckless driving, and general mischief,” which was exacerbated by TikTok videos showing how cars lacking push-button ignition and fasteners were stolen.

The city said the number of Hyundais and Nissans thefts doubled last year, followed by a “virtual explosion of theft” in the first four months of 2023 with 977 thefts reported, up from 148 in the same period in 2022.

In contrast, the city said thefts of BMWs, Fords, Hondas, Mercedes, Nissans (OTC:) and Toyotas declined this year.

The complaint seeks unspecified and punitive damages.

Hyundai said in a statement that it placed the immobilizer system standard on all vehicles in November 2021, and has taken steps including upgrading software to reduce the risk of thefts.

Kia had no immediate comment.

In February, Hyundai and Kia said they would provide software upgrades for up to 8.3 million US vehicles that lack immobilizers.

Last month, Hyundai and Kia reached a $200 million settlement of a consumer class action lawsuit over thefts.

Attorneys for the owners said that case covered about 9 million car owners in the United States, and included up to $145 million to cover stolen car losses.

The case is New York City v. Hyundai Motor America and Others, US District Court, Southern District of New York, No. 23-04772.