By james art The Birmingham City Council approved a resolution allowing the city to take legal action against Kia America, Inc. and Hyundai Motor America, Inc.
The resolution authorizes the mayor and city attorney to potentially investigate and file civil lawsuits against the two automakers “in connection with defective design and related claims that led to easy theft and theft of Hyundai and Kia vehicles.”
The resolution allows the city to participate in civil lawsuits either as an individual plaintiff or as part of a class action in response to security flaws seen in certain Hyundai and Kia models manufactured from 2011 to 2022.
The Birmingham Police Department told AL.com in September 2023 that car thefts in the city were already up 327 percent from the previous year. This includes 359 reported thefts of Kia or Hyundai vehicles.
BPD Public Information Officer Truman Fitzgerald attributes the surge in thefts to videos shared on TikTok that expose security risks in vehicles.
The National Insurance Crime Bureau found that in 2023, the Hyundai Elantra, Hyundai Sonata and Kia Optima were the three most stolen vehicles in the United States. Hyundai and Kia models also make up six of the top ten most stolen vehicles nationwide.
Asked by Councilwoman Valerie E. Abbott if the resolution was in response to BPD facing an influx of car thefts, City Attorney Nicole King said, “That’s right, Councilwoman Abbott, and it’s also a public nuisance and a drain on city funds. resources in must answer.”
Councilman Darrell O’Quinn told WBRC News that vehicle thefts have “put a disproportionate burden on local police departments, police departments everywhere, to the point that our police department has been going out and engaging with the community, distributing steering wheel locks .”
Kia and Hyundai began offering software upgrades for at-risk vehicles in February 2023.
A report by the Highway Loss Data Institute found that the rate of theft claims for cars that received the upgrade dropped by approximately 50% compared to those that did not. Theft claim rates for upgraded Hyundais were 55% lower compared to non-upgraded vehicles, while upgraded Kias saw a 51% reduction in reported thefts.
Lawsuits against automakers in 2024 include one filed by Nashville, Tennessee in September and Lexington, Kentucky in July.
Kia and Hyundai have already agreed to a $200 million settlement in October 2023 in response to a class action lawsuit by Seattle-based law firm Hagens Berman.
The suit gives access to a portion of a $145 million settlement to any person in the U.S. who has been the victim of the theft-related loss of their 2011 to 2022 Hyundai or Kia manufactured without ignition buttons and engine immobilizer that are not covered by insurance.
The case also highlights the role of social media in spreading awareness of security flaws.
According to a Kia Media press release, approximately nine million Kia and Hyundai vehicles from 2011 to 2022 were manufactured without these safety features.
The suit also provides for refunds to victims of insurance premiums, increased insurance premiums or other theft-related losses, as well as a $300 refund for customers whose vehicles cannot accommodate the software upgrade.
Kia America Chief Legal Officer John Yoon said in response to the settlement agreement, “Kia is very pleased that today’s announcement will allow customers who have been affected by car theft to receive additional benefits.”
Yoon also said Kia distributed more than 65,000 anti-theft steering wheel locks to customers whose cars were attacked.
Hyundai Motor North America Chief Legal Officer Jason Erb said, “We appreciate the opportunity to provide additional support to our owners who have been affected by increased and persistent criminal activity targeting our vehicles.”
BPD has not yet released data on the number of vehicle thefts it saw in 2024. The department made its most recent arrests in connection with a stolen Hyundai on September 8.