Kia, Hyundai Vehicles Frequently Stolen Without Immobilizers Class Action

This is another in a flood of class actions on Kia and Hyundai vehicles, this time aimed at Kia America, Inc. and Hyundai Motor America. The complaint alleges that certain Kia and Hyundai vehicles are unreasonably easy to steal because they were manufactured without immobilizers.

The Nationwide Class for this action is all persons and entities who bought or leased 2011-2022 Kia vehicles or 2015-2022 Hyundai vehicles in the US. A Michigan State Class has also been defined for those who bought or leased the vehicles in Michigan.

Immobilizers prevent vehicles from starting unless the correct key is present. In vehicles with immobilizers, the keys contain transponders. When the key is put in the ignition, the complaint alleges, “[t]he unit that controls the engine then determines whether the key being use is, in fact, one that legitimately belongs with the vehicle. If the unit determines that the correct key is not present, the engine will not start.”

Because the vehicles at issue do not contain these devices, the complaint alleges that stealing them is very easy. It quotes an Axios article as saying, “[I]t involves peeling back the steering column cover and dismantling the key slot. A USB cable can then be used to turn the ignition tumbler, start the vehicle, and release the steering lock. In turn, this allows the Hyundai or Kia to be driven away…”

Stealing these vehicles is so easy, the complaint alleges, that it can be done in less than a minute, even by children as young as eleven years old. Kias and Hyundais now make up a disproportionate number of stolen vehicles, the complaint alleges, for example, 45% of all vehicles stolen in June 2022 in Grand Rapids, Michigan.

“Multiple cities have announced their consideration of suing [Kia and Hyundai] over the defective Class Vehicles[,]” the complaint alleges. “The city of Milwaukee announced in December 2021 that it was considering suing [Kia and Hyundai] under public nuisance laws.” At the time, these vehicles made up more than two-thirds of vehicles stolen in Milwaukee. Similarly, the complaint alleges, St. Louis was also considering suing unless the companies were able to “mitigate the public nuisance” that the easily-stolen vehicles have created.

Thefts of these vehicles are so frequent that at least one major insurer, Progressive, will no longer insure these vehicles. Owners are also finding it difficult to sell their used vehicles, the complaint claims.

The complaint alleges that the companies have long known about the problem, yet “[t]hey have not offered all owners of the defective vehicles repairs, installation of immobilizers, and compensation for the decreased worth of their cars, or any other method of restitution.”

Hyundai has offered a “glass break sensor kit,” the complaint says, but charges customers $170 for it and makes them pay for the installation. Kia offers free steering wheel locks in certain areas, but the complaint alleges this does not compensate owners for diminished value.

Article Type: Lawsuit
Topic: Automobile
Tags: Defective Automobile, Immobilizer