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The Street
The Street
James Ochoa

Hyundai, Kia face a surprising lawsuit on growing problem

This isn't a movie, but like the 1974 and 2000 films of a similar name, ordinary people's cars were taken from driveways and parking spaces in less than sixty seconds. 

Inspired by "instructional videos" and joyriding videos that went viral on social media platforms like TikTok, the infamous 'Kia Boyz' trend left behind a trail of expensive insurance claims, headaches, and destruction as a critical security vulnerability was exposed to thieves' benefits.

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Said Hyundai and Kia vehicles were prime targets for theft due to the lack of a vital security feature called an immobilizer. In viral videos on social media, thieves demonstrated how easy these cars were to steal, as rudimentary and concealable tools like a flat-head screwdriver and a USB smartphone charging cable were all it took to steal a car in as quick as 35 seconds.

Related: Hyundai Enters Luxury Car Market With New Genesis Brand

Although Hyundai and Kia have introduced fixes for cars targeted by the Kia Boyz, U.S. cities that have dedicated significant resources to catching these car thieves are fed up and looking beyond automakers' apologies. 

The Kia Soul GT Line (L) and X Line are shown during the auto trade show, AutoMobility LA, at the Los Angeles Convention Center on November 28, 2016 in Los Angeles, California.

David McNew/Getty Images

On city fights back against Kia, Hyundai [in court]

According to local CBS affiliate WREG, the city of Memphis, Tennessee, is considering a lawsuit against the South Korean automakers. The city noted that over 22,000 vehicles were stolen within the city limits over the past two years, with Hyundai and Kia vehicles disproportionally represented. 

City officials argue that the sheer number of auto thefts has overwhelmed local law enforcement beyond its abilities, forcing both the Memphis PD and the Shelby County Sheriff’s Office to pull from their ranks and create new auto theft-focused units to help tackle the uptick. 

Earlier this week, a Memphis City Council committee approved a resolution that would hire a special attorney to handle litigation against Hyundai and Kia as part of a package of “extraordinary litigation” that includes suits against other individual companies blamed for infractions against its residents, including a software company blamed for rising rent in the city.

“We do not take litigation lightly,” a Memphis city spokesperson told the CBS affiliate. “However, the City of Memphis and its police officers have spent significant time responding to thefts of Kias and Hyundais, which is grossly disproportionate to other vehicle theft reports in our city. Responding to these thefts has delayed officers from responding to other calls, increased costs to the city, and left many of our residents and visitors without vehicles.”

More Automotive:

Memphis is not the only city that has filed a lawsuit against Hyundai and Kia for their supposed anti-theft shortcomings. Earlier this year, the largest city in New Jersey, Newark, joined 19 other cities, including Chicago, Milwaukee, and nearby New York City, in suing the automakers for the defect. 

According to data from the United States Census Bureau, the City of Newark is disproportionally disadvantaged compared to its suburban neighbors in North Jersey and the greater New York Metro Area, with a median household income in the city of over 300,000 topping just $46,460 from 2018 to 2022. 

In a statement announcing the suit, Newark Mayor and New Jersey gubernatorial candidate Ras J. Baraka noted that by ignoring critical anti-theft technology in its cars, Kia and Hyundai are "neglecting their responsibilities to their customers and our communities."

"And because many of their models are perfect for low-income workers using their car to get to the job, this kind of neglect and indifference adds insult to injury to those impacted by the loss of their cars and to other residents who experience a sense of lost security and safety," Baraka said. "If Newark doesn’t defend itself against these huge corporations, no one will, so we are proud to stand shoulder to shoulder with other cities that have had enough."

Related: Kia is issuing another fix for its most notorious defect

Kia plays defense, announces fix to theft problem

Earlier this year, Kia announced that it would roll out a program to install a new "theft deterrent device" for vehicles not covered under a software update rolled out last year. 

According to Kia, this device is a dealer-installed ignition cylinder protector, which "works to combat theft by reinforcing the ignition cylinder body." With it installed, Kia said that the protector prevents potential thieves from removing the ignition cylinder, a key step in the method of theft depicted in "instructional" videos on social media platforms like TikTok. 

Eligible cars for the fix include the 2014 Sedona minivan, 2011–2016 Sportage crossover, 2010–2021 Soul crossover, 2011–2021 Rio subcompact sedan and the 2011–2016 Forte compact sedan.

Kia says Memphis's suit is meritless

In a statement to the news station, Kia noted that the lawsuit and other lawsuits filed by municipalities against Kia are "without merit," noting that they are following the rules.

"Like all Kia vehicles, the specific models at issue in this case are subject to and comply fully with the requirements outlined in applicable Federal Motor Vehicle Safety Standards, including FMVSS 114 that governs theft protection measures," the automaker said.

"Additionally, The National Highway Traffic Safety Administration (NHTSA) has publicly stated that it has not determined that this issue constitutes either a safety defect or non-compliance requiring a recall under the National Traffic and Motor Vehicle Safety Act."

Related: Veteran fund manager sees world of pain coming for stocks

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