The fallout of the Hyundai and Kia car theft epidemic is far from over. Roughly 200 insurance companies are seeking reimbursement from the automakers for claims and related costs stemming from vehicles that were stolen or damaged during attempted thefts; and according to a report by the Los Angeles Times, those claims could exceed $1 billion.
The trouble started a few years ago, when a group of young people who called themselves the “Kia Boyz” begain posting on social media how easy it was to steal certain Hyundai and Kia vehicles. Thefts of these vehicles then skyrocketed, which led to lawsuits from around the countryas well as new anti-theft softwarebeing installed on both companies’ cars.
However, one of the most significant lawsuits came from California, where roughly 200 insurance companies sued the manufacturers claiming that they deliberately stopped installing engine immobilizer devices in vehicles that were bound for America. That compliant was dismissed when U.S. District Judge James V. Selna ruled that his court did not have jurisdiction over foreign manufacturers; however, the 9th U.S. Circuit Court of Appeals just reversed his decision this week.
The reversal doesn’t necessarily mean Hyundai and Kia will necessarily have to pay the $1 billion in claims related to the thefts. However, it does allow the lawsuit to proceed. The reason for the reversal, according to the Court of Appeals, is that because the Korean automakers put the vehicles on ships headed to the Golden State, there was enough to establish a connection with the state.
“By placing the vehicles on ships bound for California ports, the Korean entities purposefully availed themselves of the forum and purposefully aimed their goods at California,”wrote Circuit Judge Eric D. Miller in the ruling.The case will now be returned to Judge Selna’s district court.
But while a billion dollars is potentially at stake, the larger story may be just how long this problem continues following Hyundai and Kia. It may be a long time before they stop: a ccording to arecent UCLA study,the spike of Hyundai and Kia thefts in Los Angeles will continue through at least 2042.