'Public nuisance': New York sues Hyundai and Kia, alleging their cars are easy to steal

South Korean automakers Hyundai and Kia are being sued for causing a "public nuisance," according to a complaint filed in Manhattan national court.

New York City is accusing the 2 firms of failing to instal devices that forestall cars from being stolen, aft a societal media challenge prompted young teens to bargain vehicles disconnected the thoroughfare by blistery wiring them utilizing a USB cable.

A viral TikTok situation started successful 2021 and spurred a emergence successful thefts of Hyundai and Kia cars. Chicago saw a leap of 800% year-on-year successful the theft of these cars for the period of August 2022, officials told CNBC astatine the time. Los Angeles officials besides saw an 85% leap compared with the twelvemonth before.

"In electing profits implicit information and deviating from manufacture norms by not including motor immobilizers arsenic a modular information feature, Defendants created and maintained a nationalist nuisance," the metropolis said successful the filing made successful the U.S. District Court successful the Southern District of New York.

New York accused the 2 companies of enabling "this spiraling epidemic" of car thefts.

"This lawsuit is simply a wide illustration of what happens to nationalist information erstwhile car manufacturers take not to see modular anti-theft exertion successful their cars," the filing said. "Making definite cars are not casual to bargain protects some spot and the nationalist by keeping unsafe drivers successful stolen vehicles disconnected the roads," it said.

When contacted by CNBC, Hyundai highlighted a effect sent to news outlets wherever it said it made immobilizers modular connected each vehicles from November 2021 and had taken measures to trim the menace of thefts.

Highlighting the companies' "failure" to instal an anti-theft device, the ailment accused them of having "opened the floodgates to conveyance theft, transgression sprees, reckless driving, and nationalist harm."

Shares of South Korea's largest automakers fell connected Wednesday. Hyundai Motors slid by much than 2% portion Kia Corp dropped by much than 5%.

Hyundai and Kia past period agreed to a $200 cardinal user class-action suit settlement, according to Reuters, which covered astir 9 cardinal car owners and included up to $145 cardinal for out-of-pocket losses for customers.

New York City successful its filing said that the thefts are inactive continuing, and that it is seeking "compensation for the economical losses," without specifying an nonstop figure.

"In 2023, successful examination to past years, determination has been a virtual detonation of thefts of Kias and Hyundais," it said. Around 977 Hyundai and Kia vehicles were reported stolen successful the archetypal 4 months of the year, according to the filing.

"This represents a astir 660% summation successful thefts of Kia and Hyundai vehicles arsenic compared to those aforesaid months successful 2022, erstwhile determination were lone 148 specified thefts," it said.

New York City joins a fig of cities that took akin measures against the 2 automakers, including Baltimore, St. Louis, Milwaukee, San Diego and Seattle.

In a release, Baltimore Mayor Brandon M. Scott said successful May: "These cost-cutting measures employed by Hyundai and Kia astatine the disbursal of nationalist information are unacceptable."