New York City has also filed a lawsuit against two major car manufacturers, Hyundai and Kia, becoming one of many cities that are struggling with a major car theft epidemic. This is a growing issue, which is directly connected to a flaw in the design of some of their vehicles, a weakness that has been extensively popularized via viral social media challenges.

The case, which was filed in the U.S. district court in the Southern District of New York, alleges that Hyundai Motor America and Kia America Inc. did not install common anti-theft devices. This so-called negligence, the city argues, has resulted in a runaway epidemic of robberies, thus posing a significant risk to the safety of people and causing an enormous burden on city resources.

The core of this legal argument is that some Hyundai and Kia vehicles sold in the United States have no engine immobilizers. Engine immobilizers are important devices that are fitted in most cars since the 1990s, and they ensure that an engine does not start until the appropriate, coded key is inserted. They have not been fitted in their specific vehicles which are mostly base trim or entry-level models, making them very vulnerable to theft.

How-to videos, which are viral on such platforms as Tik Tok and YouTube, have shown how easy it is to steal these cars with alarming clarity. These educational videos demonstrate how people are bypassing the ignition systems with the help of only the tools that can be easily accessed like USB cables and screwdrivers. The offenders usually claim to belong to a group called the “Kia Boys, and credit these steals to them, which motivates others to follow their footsteps.

Purported Negligence and Impact on the Public

The lawsuit filed by the city is categorical that Hyundai and Kia had a conscious business choice to save money, and thus increase their profits, by not installing standard anti-theft devices. It claims that it is these decisions that have led to the present epidemic of vehicle thefts. This so-called negligence, the filing claims, has resulted in and caused a deep-seated public nuisance in the city.

The consequences of this robbery spurt are much more than the loss of property. New York City has argued that the increasing number of vehicle thefts is crippling the police department resources and that it is taking the attention of the police to other important tasks. Moreover, it is also adversely affecting the security of the population and the effectiveness of emergency services because stolen vehicles are occasionally the cause of hazardous events.

The statistical data provided by the New York City Police Department clearly shows the extent of the issue. In 2022, there were 287 Kias stolen, which is a high number compared to 119 in 2021. On the same note, Hyundai thefts increased significantly, as 415 vehicles were stolen in 2022, as opposed to 232 last year. These numbers are a 241 percent growth of Kias and a 179 percent growth of Hyundais in 2021-2022.

The trend has not decreased in the present year. Already in the first four months of 2023, it is estimated that 977 Hyundai and Kia vehicles were stolen in the city. This number is a staggering 660 percent rise over the 148 such thefts registered at the same time last year, and it is clear that the problem is gaining traction at a very high rate.

Mayor Eric Adams also emphasized the seriousness, saying that Kia thefts and Hyundai thefts had gone up by 890 percent and 766 percent respectively by the end of last year. Commissioner Keechant Sewell of the NYPD outlined how the department initially noticed the alarming increase in thefts in New York City in September when the department noted that the number of stolen cars had increased to about 10 to 12 per month to an average of about 100 in December.

Fraud of Thefts and Nationwide Concern

It is important to note that Hyundais and Kias have risen to be the second and fourth most stolen car brands in New York City between January and April this year. This is a significant change of their last year rankings of the seventh and eleventh most common. The suit also asserts that in sharp contrast, there has been a reduction in the thefts of vehicles of other major manufacturers like Hondas, Ford, Toyotas, BMWs, Nissan and Mercedes in the same period.

Although the Bronx has been the center of most of the thefts, there is an upsurge in the northern part of Manhattan. According to the viral videos, Commissioner Sewell stated that the teenagers are stealing these cars to engage in joyriding. But she pointed out the very important issue that these stolen cars may be used in the perpetration of more serious offenses, although many of them may be discovered abandoned.

The legal action of New York City is not an isolated case. The city is the most populated in the country and it is added to a list of cities that have sought legal redress against the car manufacturers. The lawsuits in cities like Baltimore, Cincinnati, Cleveland, Milwaukee, San Diego, Seattle, Columbus, and St. Louis are not isolated cases, as a significant concern is felt nationwide.

It has also attracted attention on a higher level with over a dozen state attorneys general demanding the recall of millions of these vulnerable cars in April. Moreover, the large insurance companies such as State Farm and Progressive have been reported to have started to cease issuing new auto insurance policies on some Hyundai and Kia models because of the high risk of theft, which means that the issue has serious financial consequences.

By June 2021, the trend of more thefts was said to have started in Milwaukee. According to news reports used as evidence in the lawsuit, Hyundai and Kia vehicle thefts in Milwaukee had increased by an unbelievable 2,500 percent over the prior year, which is equivalent to about 16 cars being reported stolen in a single day. In the case of Seattle, its complaint referred to the cars as sitting ducks which compelled the city to divert funds and put the safety of the officers at risk.

Repercussions and Auto-Manufacturers Reactions

The effects have been tragic as well. By the end of the month of February, the National Highway Traffic Safety Administration (NHTSA) had attributed at least eight deaths and 14 crashes to thefts related to this social media challenge. One of the most tragic accidents in New York last October, a car crash, killed four teenagers, and the same challenge was viewed as a factor in it.

In a press release, Hyundai has declared that it is determined to deliver the quality and integrity of its products. The automaker made it clear that a group of Hyundai cars currently on the road in the U.S. is not fitted with push-button ignitions and immobilizing anti-theft devices, namely, mostly, the cars of the base trim or entry-level models. Nevertheless, it highlighted the fact that an engine immobilizer is an anti-theft device and such cars are not in violation of federal anti-theft standards.

Having realized the growing alarm, Hyundai has installed engine immobilizers in all its cars produced since November 2021. The company has also indicated that it is interacting with the National Highway Traffic Safety Administration on the measures it is undertaking to support its customers. This involves a computer update that was implemented on almost 4 million susceptible vehicles.

In its prepared statement, Kia argued that the lawsuits against it by municipalities lacked merit. The company claimed that its certain models are subject to, and meet to the full extent, the requirements described in the relevant Federal Motor Vehicle Safety Standards, such as FMVSS 114 which regulates theft protection. Kia has also claimed to engage the law enforcement agencies in New York City to fight car theft and reduce the influence of social media in promoting it, and promises to help its customers and to vehicle security. No less than 3 million owners of Kia vehicles have received information about the presence of the software update in their cars.

Settlement and Preventive Measures

A major event that took place last month was the settlement between Hyundai and Kia to end a lawsuit filed on a class-action basis following the increased cases of vehicle theft. This settlement, which could have been worth up to 200 million dollars, includes about 9 million Hyundai and Kia vehicles of the 2011-2022 model years in the U.S.

The settlement terms provide the cash compensation to the customers who have incurred the theft-related losses or damage that is not insurable. It also covers insurance deductibles, higher insurance premiums and other insurance related losses. Eligible owners will be given a software upgrade. In the case of vehicles that cannot support the software upgrade, the agreement will reimburse up to 300 dollars on anti-theft devices.

Besides the settlement, Kia and Hyundai have been proactive in giving tens of thousands of free steering wheel locks. These have been availed in the form of local law enforcement agencies and direct shipments to affected customers, as a short term, though temporary, solution to prevent thefts. This proposed settlement is now awaiting preliminary court approval which is expected in July.

Mayor Adams, in a firm pronouncement, said, we are not going to sit back and watch automakers close their eyes to safety and make it easy to criminals to hunt New Yorkers. He highlighted that the citizens depend on their cars to lead their everyday lives and they are entitled to receive typical anti-theft provisions. He said, we will hold Kia and Hyundai responsible of the civic menace they have caused and safeguard the cars of New Yorkers.

New York City has also responded to the crisis by taking its own preventative measures, such as distributing hundreds of Apple AirTags to aid in the tracking of stolen vehicles. Mayor Adams has also shown his favor to a Tik Tok ban because of the Kia Boyz challenge, having organized a summit to talk about the negative impact of social media on young people, even saying, Tik Tok should be held accountable.

Current Court Case and Wider Implications

The New York Police Department has provided very important guidance to the owners of the older, more vulnerable models. Besides the available software upgrade, owners are highly advised to use steering wheel locking device, always turn off the ignition and leave out keys when leaving the vehicle, lock all windows and doors, turn on the vehicle alarm system and park in busy and well-lit places whenever possible. Tik Tok, in its turn, has claimed that it has no conditionalities towards this behavior that is against our policies and will be eliminated in case it is discovered on our platform.

The case between New York City and the automakers is a case of serious conflict between corporate responsibility and safety to the people. The abatement, economic losses compensation and injunctive relief sought by the city is to deal with the deep effects of these thefts. With the case heading towards a possible jury trial and the class-action settlement still awaiting a final decision, the larger consequences of consumer vehicle security standards and automaker responsibility are still on the front burner.

This court case demonstrates how important the strong anti-theft strategies are in the times when digital tendencies can easily turn into practical criminal behavior. The verdict will certainly establish precedents in the manner in which automakers will be held accountable to the vices in their products, particularly when they are the cause of the mass harm to the populace and the excessive load on the municipal services. It is a bleak reality that the design decisions of the manufacturers have physical implications on the communities and individuals.