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The Birmingham City Council approved a resolution allowing the city to pursue 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 claims against the two auto manufacturers, “in connection with defective design and related claims which caused Hyundai and Kia vehicles to be easily stolen and burglarized.”
The resolution allows the city to participate in civil suits either as an individual claimant or as part of class action litigation 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 had already seen a 327 percent increase from the previous year. This included 359 reported thefts of Kia or Hyundai vehicles.
BPD Public Information Officer Truman Fitzgerald attributed the influx in thefts to videos shared on TikTok which exposed security risks in the 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 made up six of the ten most stolen vehicles nationwide.
When asked by councilmember Valerie E. Abott if the resolution was in response to BPD facing an influx of car thefts, City Attorney Nicole King said, “That is correct, Councilor Abott, and also it is a public nuisance and drain on city resources in having to respond.”
Councilmember Darrell O’Quinn told WBRC News vehicle thefts have “caused a disproportionate amount of workload for local police departments, police departments everywhere, to the extent that our police department was going out and doing community engagement, distributing steering wheel locks.”
Kia and Hyundai began offering software upgrades for at risk vehicles in February 2023.
A Highway Loss Data Institute report found theft claim frequency for cars that have received the upgrade are down by roughly 50 percent compared to those that haven’t. The frequency of theft claims for upgraded Hyundais was 55 percent lower compared to non-upgraded vehicles, while upgraded Kias saw a 51 percent reduction in reported thefts.
Lawsuits against the auto manufacturers in 2024 include one filed by Nashville, Tenn. in September and Lexington, Ky. in July.
Kia and Hyundai also already agreed to a $200 million in settlement in October 2023 in response to a class action suit by Seattle-based law firm Hagens Berman.
The suit gives access to a portion of a $145 million settlement to any individual in the U.S. that was victim to the theft-related loss of their 2011 to 2022 Hyundai or Kia manufactured without push-button ignitions and an engine immobilizer that were not covered by insurance.
The lawsuit also highlights social media’s role in spreading awareness of the security defects.
According to a press release by Kia Media, roughly nine million 2011 to 2022 model Kia and Hyundai vehicles were manufactured without these security features.
The suit also provides reimbursement for victims’ insurance deductibles, increased insurance premiums or other theft related losses, as well as a $300 dollar reimbursement for customers’ whose vehicles can’t 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 impacted by vehicle thefts to receive additional benefits.”
Yoon also said Kia has distributed over 65,000 anti-theft steering wheel locks to customers whose vehicles had been targeted.
Hyundai Motor North America Chief Legal Officer Jason Erb said, “We appreciate the opportunity to provide additional support for our owners who have been impacted by increasing and persistent criminal activity targeting our vehicles.”
BPD has not yet released data on the number of vehicle thefts they’ve seen in 2024. The department made its most recent arrests in connection to a stolen Hyundai on Sept. 8.
