UPDATE: The City of Milwaukee is suing automakers Kia and Hyundai over the surge in car thefts. Late Wednesday evening, the city filed a federal lawsuit accusing the companies of having a design flaw in their cars, making them easy to steal. The two brands make up more than half of all stolen vehicles in the city. Kia and Hyundai tell TMJ4 News they have taken steps to curb thefts, including offering software upgrades and free steering wheel locks.
The City of Milwaukee is preparing to file a lawsuit against car makers Kia and Hyundai, after a rise in thefts in Milwaukee has caused lots of public safety issues.
During a news conference outside of the federal courthouse, Milwaukee's city attorney Tearman Spencer was frank that this lawsuit has been a long time coming.
Spencer described Milwaukee is the epicenter of the car thefts targeting Kia and Hyundais across the country. The city hopes to be used as a bellwether or named as a primary plaintiff in a multidistrict litigation or MDL, which could give Milwaukee an edge when it comes to a settlement.
MORE COVERAGE: AG Kaul, Milwaukee leaders demand action from Kia/Hyundai to address thefts: 'They've been that easy to steal'
Since the Common Council approved a resolution on Tuesday, Spencer's office will retain outside counsel more experienced and with the capacity to lead what's expected to be a pricey lawsuit to recover damages that the city has incurred due to these thefts.
Spencer said they have decided to move forward with Keller Rohrback LLP out of Seattle. Deputy city attorney Robin Pederson added that the law firm has partnered with MWH Law Group locally.
"It is my hope that we’re not only curb the thefts, but that the city of Milwaukee recovers some of the damages for police, fire, DPW, and any other costs that we’ve had to occur as a result of the negligence of Kia and Hyundai," Alderwoman Milele Coggs said.
Spencer was asked about the drivers who had their cars stolen.
Spencer said during the news conference, "This is an endeavor for municipal loss of the city. We all live here in the city I hope, and we do our business here. The damages that have occurred from a municipal perspective is what we are seeking retribution for. The consumer actions are a whole totally different matter."
Spencer did not have a dollar amount that the city is seeking, but said that number is constantly being calculated.
The city's push to sue Kia and Hyundai comes on the heels of Wisconsin's Attorney General announcing a coalition of AGs pushing the manufacturers to do more to deter the thefts.
"The city definitely deserves those damages back. It's a big issue that Kia Hyundai might've been able to prevent," Jose Ramos said.
Ramos lives in Milwaukee and said his Kia was stolen on January 1, 2023 near the busy area of St. Paul Avenue and Broadway in the city's Third Ward.
Ramos supports the lawsuit but questioned if it make a difference and stop thieves.
"I think any kind of amount going back to the city is helpful because the the city can use that for more important things that would benefit everyone living in it," Ramos said.
Wendy Sneed had her Hyundai Tucson stolen outside of a hotel while visiting Milwaukee in December. She did not mind hearing the lawsuit is aimed to recoup the city's losses.
"It does bring more awareness. I would like to see the two companies bear some responsibility. I think they should. It's crazy the epidemic going on," Sneed said.
Hyundai America issued the following statement, in response to a TMJ4 News inquiry:
"Hyundai Motor America is committed to ensuring the quality and integrity of our products. In response to increasing and persistent thefts targeting our vehicles without push-button ignitions and immobilizing anti-theft devices in the United States, Hyundai: (1) made engine immobilizers standard on all vehicles produced as of November 2021; (2) introduced a free software upgrade to prevent the method of theft involved; (3) rolled the software upgrade out to more than 1 million customers, with the remaining approximately 3 million affected customers to be eligible for the upgrade within the coming weeks; (4) initiated a program to reimburse affected customers for their purchase of steering wheel locks; and (5) continues to provide free steering wheel locks to law enforcement agencies across the country, including in the Milwaukee area, for distribution to local residents who own or lease affected models."
Kia also issued the following statement:
"Kia remains deeply concerned that car theft targeting certain models – encouraged by social
media content promoting criminal conduct – is an issue and we continue to take swift and
aggressive action to address these crimes. We have developed and are rolling out a free,
enhanced security software upgrade to restrict the unauthorized operation of vehicle ignition
systems and we are also providing steering wheel locks for impacted owners at no cost through
local law enforcement agencies. To date, Kia has already contacted over 1.1 million owners and
lessees of Kia vehicles to let them know of the availability of the software upgrade and to advise
them to schedule a free installation at any Kia dealer. We have also shipped or are in the
process of shipping over 27,000 free steering wheel locks to over 140 law enforcement agencies
across the country, including nearly 3000 to police departments in the Milwaukee area, and we
will provide additional locks as they are needed.
All Kia vehicles are subject to and comply fully with rigorous testing rules and regulations
outlined in the Federal Motor Vehicle Safety Standards, including under FMVSS 114 that governs
ignition security systems and theft protection.
Lawsuits against Kia by municipalities are without merit. Kia has been and continues to be
willing to work cooperatively with law enforcement agencies in Milwaukee to combat car theft
and the role social media has played in encouraging it.
Customers should visit https://ksupport.kiausa.com/ConsumerAffairs/SWLD for more
information on their eligibility for the upgrade or to learn more about directly obtaining a
steering wheel lock."
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