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Home News

Kia and Hyundai Face Theft Lawsuit

June 9, 2023
Reading Time: 2 mins read
in News

 

New York City has joined several other municipalities in filing a lawsuit against Kia and Hyundai due to a significant increase in stolen vehicles related to a viral TikTok car theft challenge that took place in 2021. The automakers are accused of failing to install anti-theft devices in their vehicles before 2021, making them vulnerable to thieves who learned how to hotwire them using a common screwdriver and USB cable.

The stolen vehicle instructions were posted on TikTok, resulting in the “KIA challenge” that encouraged users across the US to steal Kia and Hyundai models. The rise in car thefts caused the New York City Police Department to divert resources and cost the city millions of dollars.

In addition to New York City, other US cities, including Baltimore, Cleveland, San Diego, Seattle, St. Louis, and Milwaukee, have also taken legal action against Kia and Hyundai for similar reasons.

The challenge, initially started as a prank by a group of teenagers, tragically led to at least 14 crashes and eight fatalities, according to the National Highway Traffic Safety Administration. The complaint argues that Kia and Hyundai created a public nuisance by not following industry standards and failing to install immobilizer devices or equivalent anti-theft measures in their vehicles between 2011 and 2022.

The lawsuit accuses the automakers of prioritizing profits over safety, forcing the city to allocate funds and risk officer safety to combat the growing burden of increased thefts and reckless driving involving Hyundai and Kia vehicles. The number of reported stolen Kia and Hyundai vehicles doubled in 2022 and increased six times in the first four months of 2023 compared to the same period the previous year.

By contrast, thefts of other manufacturers’ vehicles have decreased in New York City. Car insurance theft claims for 2015-2019 Hyundai and Kia vehicles have also nearly doubled compared to other models from the same period, prompting some insurance companies to stop offering new policies for those vehicles.

Since the TikTok challenge emerged, Kia and Hyundai have made immobilizers a standard feature in all vehicles manufactured after November 2021. They also released a free anti-theft software upgrade for the 8.3 million existing vehicles lacking anti-theft devices.

In April, a group of State Attorney Generals requested the National Highway Traffic Safety Administration to mandate a recall of all affected vehicles due to safety concerns.

Furthermore, Kia and Hyundai agreed to settle a class action lawsuit in California for $200 million to cover consumer losses resulting from the thefts. While Kia claims to be working with New York City law enforcement to address car thefts, they have dismissed the city’s lawsuit as lacking merit. The New York City filing seeks unspecified compensatory and punitive damages.

Reference:
  • JURY TRIAL DEMANDED

 

Tags: AutomotiveCyber NewsCyber News 2023HyundaiJune 2023KiaNew YorkSocial MediaTikTok
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