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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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California, other states seek Hyundai, Kia recall over theft.

The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan,... The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Andrew Kelly
The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan,... The logo of Hyundai Motor Company is pictured at the New York International Auto Show, in Manhattan, New York City, U.S., April 13, 2022. REUTERS/Andrew Kelly

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On Thursday, the California attorney general and 17 other states requested a federal regulator to recall Hyundai and Kia automobiles because they lack safety measures.

Police and state records show that many stolen cars in several U.S. cities are Hyundai Motor Co (005380.  K.S.) and Kia Corp (000270.  K.S.) models. In addition, some Korean entry-level vehicles did not have engine immobilizers or push-button ignitions, even though most automobiles today have these.

Hyundai Motor owns most of Kia.

“Kia’s and Hyundai’s failure to install standard safety features on many of their vehicles have put vehicle owners and the public at risk,” said California Attorney General Rob Bonta, leading the states’ recall push. Concerned states wrote to the National Highway Traffic Safety Administration.

Hyundai claimed that its vehicles without engine immobilizers met federal anti-theft criteria because they were not required.

“These specific models comply fully with all applicable federal standards, a recall is neither appropriate nor necessary under federal law,” Kia said.

Last year, the Insurance Institute for Highway Safety’s Highway Loss Data Institute reported that 2015-2019 model-year Hyundai and Kia vehicles had nearly twice as many theft claims as all other manufacturers.

Car thefts have increased nationwide due to TikTok videos showing how to steal Kia and Hyundai cars without push-button ignitions and immobilizing anti-theft equipment.

Bonta claimed carmakers incorporated the industry standard immobilizer in the same models in Canada and Europe but “carve out” the U.S.

“These carmakers have chosen to pass this risk onto consumers and our communities,” Bonta said.

In February, automakers offered 8.3 million U.S. automobile software upgrades to reduce thefts.

According to Bonta, many impacted vehicles won’t get upgrades until June, and some 2011-2022 models can’t install them.

 


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