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Suing car makers for auto theft: Strong legal grounds

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【Summary】Cities, including Chicago, are suing Kia and Hyundai over the high rate of car thefts. The lawsuit alleges that the car manufacturers did not include immobilizer technology in some of their cheaper vehicles, making them easy targets for thieves. Last year, over 1 million vehicles were stolen in the US, with Kias and Hyundais being among the most-stolen cars. The cities argue that by selling cars that are easy to steal, the manufacturers wasted police time and enabled other crimes.

FutureCar Staff    Aug 31, 2023 7:31 AM PT
Suing car makers for auto theft: Strong legal grounds

TikTok, a Chinese-owned social media platform, is known for its short video content. However, it has also become a source of useful information. For example, a search for "Kia" on TikTok's platform yields autosuggest options such as "boys tutorial." Clicking on this option leads to a video that explains how to steal a Hyundai car. The video shows a gloved hand removing the plastic covering from the steering-wheel housing, inserting a screwdriver into the ignition switch, and starting the car. With over 415,000 likes, this video is just one example of a viral trend led by "Kia Boys," a group of adolescents who steal cars for joyriding and share their exploits on social media.

On August 24th, the City of Chicago announced that it had filed a lawsuit against the American subsidiaries of Kia and Hyundai, two South Korean car manufacturers. The lawsuit alleges that these companies failed to include simple immobilizer technology in some of their cheaper vehicles, making them extremely easy to steal. In 2022 alone, over 8,800 Kias and Hyundais were stolen in Chicago, accounting for two-fifths of the total vehicle thefts recorded, which amounted to 21,000. This year, the number of stolen cars from these manufacturers has already surpassed half of the total, and compared to the same period last year, the figure has doubled. Chicago's left-wing mayor, Brandon Johnson, describes the lack of immobilizers as a "nationwide crime spree."

While some critics accuse Mayor Johnson of shirking responsibility for crime, Chicago's lawsuit is not an isolated case. In fact, seven cities have filed lawsuits against Kia and Hyundai this year, as car theft rates have skyrocketed across America. Cities like Baltimore, New York, and Seattle are among those also taking legal action. Last year, over 1 million vehicles were stolen, the highest number since 2008, with Kias and Hyundais being among the most frequently stolen cars. The car manufacturers settled a class-action lawsuit by owners for $200 million earlier this year.

The outcome of these lawsuits remains uncertain. The cities argue that by selling easily stealable cars, Kia and Hyundai wasted police time and facilitated other crimes. Kia maintains that its vehicles were compliant with the law and dismisses the lawsuits as baseless. Unlike in Europe or Canada, American regulators do not require immobilizers to be installed in vehicles. However, the car manufacturers have offered software updates to enhance the security of the affected cars. All new Kias and Hyundais now come equipped with immobilizers.

In 2015, while 96% of new cars sold by other manufacturers included immobilizers, only 26% of Kia and Hyundai vehicles had this feature. Legal scholar Todd Henderson from the University of Chicago suggests that the cities suing might have a valid case. He argues that when a simple and affordable technology exists that can significantly reduce the risk of a product causing significant harm, the absence of that technology makes the product defective. A car that can be easily stolen could be compared to an iron that doesn't automatically switch off and ends up burning down a house.

Criminologist Graham Farrell from the University of Leeds in Britain describes car theft as a "keystone crime." He believes that the substantial decrease in car theft during the 1990s, when annual thefts in America peaked at 1.7 million in 1991, was largely due to the widespread adoption of immobilizers. Stolen cars not only enable other crimes but may also contribute to the creation of new criminals. Farrell's 2020 study suggests that car theft serves as a gateway to further criminal activity, with young boys who start by stealing cars often going on to have extensive criminal careers.

Given these implications, American law enforcement and politicians should be concerned. While the surge in violence that began in late 2020 appears to be subsiding, car theft rates continue to rise. There is a risk that the "Kia Boys" phenomenon is only just beginning.

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