New York City has taken legal action against Hyundai Motor Co and Kia Corp, accusing the South Korean automakers of negligence and creating a public nuisance by selling vehicles that are prone to theft. The city's lawsuit joins similar legal actions filed by other major cities including Baltimore, Cleveland, Milwaukee, San Diego, and Seattle against Hyundai and Kia over the thefts. The automakers have not yet responded to requests for comment.

In the complaint filed in Manhattan federal court, New York City criticized Hyundai and Kia for their failure to install anti-theft devices called immobilizers on most of their cars from 2011 to 2022, making them an exception among automobile manufacturers. According to the city, this lack of security measures has resulted in an increase in vehicle theft, crime sprees, reckless driving, and public harm.

New York City highlighted that the number of reported thefts of Hyundais and Kias doubled last year, and there has been a significant surge in thefts in the first four months of 2023, with 977 reported cases compared to 148 during the same period in 2022. In contrast, thefts of BMW, Ford, Honda, Mercedes, Nissan, and Toyota vehicles have declined this year.

The city's complaint seeks unspecified compensatory and punitive damages from the automakers. Last month, Hyundai and Kia reached a $200 million settlement in a consumer class action lawsuit related to the thefts, which covered around 9 million U.S. vehicle owners and included compensation for stolen vehicles. In February, the automakers announced plans to offer software upgrades to approximately 8.3 million U.S. vehicles without immobilizers.

The lawsuit is titled City of New York v Hyundai Motor America et al and is being heard in the U.S. District Court, Southern District of New York, with the case number 23-04772.