NEWARK, N.J. (Legal Newsline) - The city of Newark, N.J., is suing Hyundai, claiming it had to pay its cops overtime to investigate the thefts of the company's cars that lacked security measures.
The City of Newark filed a lawsuit Jan. 16 in New Jersey federal court against Hyundai Motor America, Inc., and Kia America, Inc., alleging that the automakers' failure to install industry-standard anti-theft technology in their vehicles has led to an "epidemic" of car thefts.
The complaint states that from 2011 to 2021, Hyundai and Kia manufactured vehicles without ignition immobilizers, leaving them susceptible to theft with basic tools like a USB cable.
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Since the security flaws were exposed in 2022, thefts of these vehicles have skyrocketed. In Newark alone, more than 1,900 Hyundais and Kias were reported stolen in the first ten months of 2023 - a staggering increase of over 1000% compared to the previous year's theft reports, the suit says. These thefts allegedly account for more than half of all vehicle thefts in Newark.
The city argues that these vehicle thefts endanger citizens and strain resources, leading to reckless driving, increased violence, and depletion of emergency resources. The Newark Police Division allegedly had to dedicate over 19,284 auto theft suppression overtime hours in response to this surge in car thefts during the first ten months of 2023. This resulted in an overtime cost exceeding $1 million - more than the yearly auto theft suppression overtime costs of 2021 and 2022 combined.
Despite these impacts, Hyundai and Kia have allegedly done nothing to address the issue or accept responsibility for their products through recalls or repair programs, the suit says. The lawsuit accuses Hyundai and Kia of public nuisance, negligence, fraud, unjust enrichment; violation of New Jersey Products Liability Act and Consumer Fraud Act; and public nuisance pursuant to Newark Municipal Code.
Rachel Simon of Pashman Stein Walder Hayden represents Newark.