Hyundai Motor Co. automobiles are displayed on the firm’s Motorstudio showroom in Goyang, South Korea, on Thursday, Oct. 22, 2020.
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South Korean automakers Hyundai and Kia are being sued for inflicting a “public nuisance,” based on a grievance filed in Manhattan federal court docket.
New York City is accusing the 2 companies of failing to put in gadgets that stop automobiles from being stolen, after a social media problem prompted younger teenagers to steal automobiles off the road by scorching wiring them utilizing a USB cable.
A viral TikTok problem began in 2021 and spurred an increase in thefts of Hyundai and Kia automobiles. Chicago noticed a soar of 800% year-on-year within the theft of those automobiles for the month of August 2022, officers informed CNBC on the time. Los Angeles officers additionally noticed an 85% soar in contrast with the yr earlier than.
“In electing profits over safety and deviating from industry norms by not including engine immobilizers as a standard safety feature, Defendants created and maintained a public nuisance,” the town stated within the submitting made within the U.S. District Court within the Southern District of New York.
New York accused the 2 firms of enabling “this spiraling epidemic” of automotive thefts.
“This case is a clear example of what happens to public safety when car manufacturers choose not to include standard anti-theft technology in their cars,” the submitting stated. “Making sure cars are not easy to steal protects both property and the public by keeping dangerous drivers in stolen vehicles off the roads,” it stated.
When contacted by CNBC, Hyundai highlighted a response despatched to information retailers the place it stated it made immobilizers customary on all automobiles from November 2021 and had taken measures to scale back the specter of thefts.
Highlighting the businesses’ “failure” to put in an anti-theft machine, the grievance accused them of getting “opened the floodgates to vehicle theft, crime sprees, reckless driving, and public harm.”
Shares of South Korea’s largest automakers fell on Wednesday. Hyundai Motors slid by greater than 2% whereas Kia Corp dropped by greater than 5%.
Hyundai and Kia final month agreed to a $200 million client class-action lawsuit settlement, based on Reuters, which lined roughly 9 million automotive house owners and included as much as $145 million for out-of-pocket losses for patrons.
‘Virtual explosion’ of thefts
New York City in its submitting stated that the thefts are nonetheless persevering with, and that it’s in search of “compensation for the economic losses,” with out specifying an actual determine.
“In 2023, in comparison to past years, there has been a virtual explosion of thefts of Kias and Hyundais,” it stated. Around 977 Hyundai and Kia automobiles had been reported stolen within the first 4 months of the yr, based on the submitting.
“This represents a roughly 660% increase in thefts of Kia and Hyundai vehicles as compared to those same months in 2022, when there were only 148 such thefts,” it stated.
New York City joins numerous cities that took related measures towards the 2 automakers, together with Baltimore, St. Louis, Milwaukee, San Diego and Seattle.
In a launch, Baltimore Mayor Brandon M. Scott stated in May: “These cost-cutting measures employed by Hyundai and Kia at the expense of public safety are unacceptable.”
Source: www.cnbc.com”