New York City Takes Legal Action against Hyundai, Kia
2023-06-12
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1New York City is taking legal action against the carmakers Hyundai and Kia.
2City officials say some of the companies' vehicles have a design problem that makes them easier to steal.
3The car models in the case lack equipment called engine immobilizers.
4These devices prevent the engine from starting unless the key is present.
5Such devices have been used on most cars since the 1990s.
6But videos on TikTok and other sites show how to start the cars using only USB cables and a common tool called a screwdriver.
7New York government lawyers say that Hyundai Motor America and Kia America Inc.
8failed to keep up with other automakers by not using immobilizer technology.
9"Hyundai's and Kia's business decisions to reduce costs, and thereby boost profits, by foregoing common anti-theft technology have resulted in an epidemic of thefts," the lawsuit states.
10The city says the vehicle thefts are putting pressure on its police department's resources and harming public safety and emergency services.
11The New York City police department reports that about 287 Kias were stolen last year, compared with approximately 119 in 2021.
12Around 415 Hyundais were reported stolen in 2022, compared with 232 a year earlier.
13The problem has continued, with an estimated 977 Hyundai and Kia vehicles reported stolen in the first four months of this year.
14There were only 148 such thefts in the same months last year.
15New York, the nation's biggest city by population, joins a growing list of cities going after the carmakers.
16Other major cities in Maryland, Ohio, Wisconsin and other states have filed similar legal complaints after large increases in car thefts.
17New York City is requesting an order for abatement of the problem.
18It also requests that the court order Hyundai and Kia to pay for economic losses suffered by the city as a result of the problem.
19Hyundai says it is committed to ensuring the quality and soundness of its products.
20In a written statement, the automaker said that a small group of basic, low cost Hyundai cars on the road in the U.S. today "are not equipped with push-button ignitions and immobilizing anti-theft devices."
21The statement added, "It is important to clarify that an engine immobilizer is an anti-theft device and these vehicles are fully compliant with federal anti-theft requirements."
22All Hyundai cars made from November 2021 onward have engine immobilizers.
23The company also said that it's speaking with the National Highway Traffic Safety Administration on the actions it is taking to assist its customers.
24Kia did not immediately respond to a Reuters request for comment.
25Last month Hyundai and Kia reached a settlement to end a lawsuit prompted by an increase in vehicle thefts.
26The settlement could be valued at $200 million and covers about 9 million 2011-2022 model year Hyundai and Kia vehicles in the U.S., the companies said at the time.
27The settlement will provide payment to customers who suffered theft-related losses or damage not covered by insurance - as well as payments for insurance deductibles, increased insurance prices and other losses, Kia and Hyundai said.
28A software improvement will also be provided to some owners.
29For customers with vehicles that cannot use the software upgrade, the agreement will provide a payment of up to $300 for anti-theft devices.
30Kia and Hyundai have also given affected customers tens of thousands of free steering wheel locks through local law enforcement and direct shipments, the companies said.
31A court is expected to consider that proposed settlement starting in July.
32I'm John Russell.
1New York City is taking legal action against the carmakers Hyundai and Kia. City officials say some of the companies' vehicles have a design problem that makes them easier to steal. 2The car models in the case lack equipment called engine immobilizers. These devices prevent the engine from starting unless the key is present. Such devices have been used on most cars since the 1990s. 3But videos on TikTok and other sites show how to start the cars using only USB cables and a common tool called a screwdriver. 4New York government lawyers say that Hyundai Motor America and Kia America Inc. failed to keep up with other automakers by not using immobilizer technology. 5"Hyundai's and Kia's business decisions to reduce costs, and thereby boost profits, by foregoing common anti-theft technology have resulted in an epidemic of thefts," the lawsuit states. 6The city says the vehicle thefts are putting pressure on its police department's resources and harming public safety and emergency services. 7The New York City police department reports that about 287 Kias were stolen last year, compared with approximately 119 in 2021. Around 415 Hyundais were reported stolen in 2022, compared with 232 a year earlier. 8The problem has continued, with an estimated 977 Hyundai and Kia vehicles reported stolen in the first four months of this year. There were only 148 such thefts in the same months last year. 9New York, the nation's biggest city by population, joins a growing list of cities going after the carmakers. 10Other major cities in Maryland, Ohio, Wisconsin and other states have filed similar legal complaints after large increases in car thefts. 11New York City is requesting an order for abatement of the problem. It also requests that the court order Hyundai and Kia to pay for economic losses suffered by the city as a result of the problem. 12Hyundai says it is committed to ensuring the quality and soundness of its products. 13In a written statement, the automaker said that a small group of basic, low cost Hyundai cars on the road in the U.S. today "are not equipped with push-button ignitions and immobilizing anti-theft devices." 14The statement added, "It is important to clarify that an engine immobilizer is an anti-theft device and these vehicles are fully compliant with federal anti-theft requirements." 15All Hyundai cars made from November 2021 onward have engine immobilizers. 16The company also said that it's speaking with the National Highway Traffic Safety Administration on the actions it is taking to assist its customers. 17Kia did not immediately respond to a Reuters request for comment. 18Last month Hyundai and Kia reached a settlement to end a lawsuit prompted by an increase in vehicle thefts. 19The settlement could be valued at $200 million and covers about 9 million 2011-2022 model year Hyundai and Kia vehicles in the U.S., the companies said at the time. 20The settlement will provide payment to customers who suffered theft-related losses or damage not covered by insurance - as well as payments for insurance deductibles, increased insurance prices and other losses, Kia and Hyundai said. 21A software improvement will also be provided to some owners. For customers with vehicles that cannot use the software upgrade, the agreement will provide a payment of up to $300 for anti-theft devices. 22Kia and Hyundai have also given affected customers tens of thousands of free steering wheel locks through local law enforcement and direct shipments, the companies said. 23A court is expected to consider that proposed settlement starting in July. 24I'm John Russell. 25Michelle Chapman reported on this story for the Associated Press. John Russell adapted it for VOA Learning English. 26_____________________________________________________________________ 27Words in This Story 28screwdriver - n. a tool that is used for turning screws 29forego - v. to give up the use of (something) 30compliant - adj. agreeing with a set of rules or requirements 31deductible - n. an amount of money that you have to pay before an insurance company pays for the remainder of the cost