The city of Birmingham, Alabama, adjacent to Hyundai¡¯s manufacturing plant, has filed a major class-action lawsuit against Hyundai and Kia, holding them accountable for a surge in vehicle thefts. This lawsuit joins a growing wave of legal actions by municipalities and consumers across the U.S., intensifying the debate over anti-theft technology and automakers¡¯ responsibilities.

In a complaint filed on July 11 in a California federal court, Birmingham alleged that ¡°Hyundai and Kia intentionally failed to install engine immobilizers, a basic anti-theft device, in vehicles sold between at least 2011 and 2022.¡± An engine immobilizer prevents a vehicle from starting unless the key¡¯s embedded chip matches the vehicle¡¯s electronic system, a feature mandated in Europe and Canada but not in the U.S. Birmingham claims that Hyundai and Kia¡¯s decision to omit this device in many U.S. models, citing the lack of legal obligation, led to an explosive increase in vehicle thefts.

In recent years, thefts of Hyundai and Kia vehicles have surged in major U.S. cities. In 2021, Milwaukee, Wisconsin, police reported a 2,500% increase in thefts of these vehicles compared to the previous year. The issue gained traction through social media, particularly the ¡°TikTok Challenge,¡± which showed how to steal these cars using just a USB cable. Thieves could break windows and steal vehicles in under a minute, contributing to a rise in accidents, violent crimes, and reckless driving by unlicensed teens.

Birmingham authorities stated, ¡°These vehicle thefts go beyond mere property damage, threatening citizens¡¯ lives and safety while draining public resources like police, fire, and emergency medical services.¡± They criticized the automakers, arguing that ¡°their irresponsible choices have shifted societal costs onto the city.¡± Some insurance companies have responded by refusing new coverage for high-risk Hyundai and Kia models or significantly raising premiums, further burdening consumers.

In response to the crisis, Hyundai and Kia have issued software updates for some models and provided free steering wheel locks. However, Birmingham argues these measures are inadequate, noting that millions of vehicles cannot receive the updates and thefts persist even in updated vehicles.

This lawsuit is the latest in a series of municipal actions against Hyundai and Kia over vehicle theft liabilities. At least 10 other major cities, including New York, Seattle, San Diego, Baltimore, Chicago, St. Louis, and Milwaukee, have filed similar lawsuits. Individual and class-action lawsuits from affected vehicle owners are also flooding courts nationwide.