New York City sues Hyundai, Kia over theft issue

A proliferation of auto thefts in New York City by gangs of so-called “Kia Boyz” has sparked a lawsuit against South Korean manufacturers Kia Motors (OTCPK:KIMTF) and Hyundai Motors (OTCPK:HYMTF).

The suit accuses the automaker of improperly guarding against theft and leaving its vehicles unduly vulnerable to hotwiring due to design issues and a lack of immobilizer protection. These issues have helped spark a “virtual explosion of thefts” in major cities, according to the complaint.

The issue has been highlighted across multiple metropolitan areas in recent months, with New York City Mayor Eric Adams foreshadowing the official suit in early April.

“We are not going to sit idly by while automakers turn a blind eye to safety and make it easy for criminals to prey on New Yorkers,” the mayor said at the time. “New Yorkers count on their Kia and Hyundai automobiles to earn a living, get to and from work, transport their children and elderly family members, and live their daily lives. We have the right to expect that those cars have standard anti-theft measures — measures which certain Kia and Hyundai cars lack. We’re going to hold Kia and Hyundai accountable for the public nuisance they’ve created and protect New Yorkers’ cars.”

Shares of Hyundai (OTCPK:HYMTF) dipped 2.3% on Wednesday while Kia (OTCPK:KIMTF) shares slipped 4.87%.

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