Milwaukee to sue Kia, Hyundai over vehicle thefts, city leaders announce

Alison Dirr, Milwaukee Journal Sentinel
·3 min read
7

The City of Milwaukee will be suing automakers Kia and Hyundai over the damage inflicted by thefts of their vehicles, Milwaukee leaders announced Wednesday.

"It is my hope that not only do we curb the thefts but that the City of Milwaukee recovers some of the damages for police, fire, (Department of Public Works) and any other costs that we've had to incur as a result of the negligence of Kia and Hyundai," Ald. Milele Coggs said at a news conference Wednesday in front of the federal courthouse in downtown Milwaukee.

Coggs said about two years ago she and Ald. Khalif Rainey started to highlight the automobile thefts and began asking the City Attorney’s Office to look at possible legal remedies.

City Attorney Tearman Spencer, center, speaks alongside Ald. Milele Coggs, left, and deputy city attorney Robin Pederson during a news conference outside the Federal Courthouse on East Wisconsin Avenue in Milwaukee on Wednesday, March 22, 2023. Common Council members on Tuesday backed legislation authorizing Spencer to hire outside counsel that would advise the city regarding the Kia and Hyundai thefts that have plagued Milwaukee.

Milwaukee City Attorney Tearman Spencer described the city as "ground zero" for the thefts that have hit cities across the nation. He said the city would be filing the lawsuit Wednesday.

“Today is the day that we will be filing, getting things moving,” Spencer said.

The city does not have a specific sum it is currently seeking in damages, he said.

The move comes a day after the city’s Common Council approved legislation that authorizes Spencer to hire outside counsel to pursue "all potential remedies for damages suffered by the City of Milwaukee as a result of the nuisance levels of automobile thefts."

Mayor Cavalier Johnson signed the legislation the same day as the council vote.

Milwaukee has seen car thefts spike in recent years, reaching a record of 10,487 in 2021, the bulk of which were Kias and Hyundais. Last year, there were 8,097 car thefts in the city. Year-to-date in 2023, the thefts are down about 30%, according to data that police report online.

The carmakers have attributed the thefts to the targeting of Kia and Hyundai models that do not have engine immobilizers, a feature that makes it more difficult to start the vehicle without a key — but they argue the vehicles were built in compliance with federal standards.

Last month, Kia and Hyundai announced a theft-deterrent software update for their vehicles that lack an engine immobilizer, though Wisconsin Attorney General Josh Kaul and others this week contended that the automakers have not done nearly enough.

In a statement, Kia said it was "deeply concerned" about the thefts encouraged by social media posts promoting criminal behavior and noted the steps the company has taken to combat the issue.

The company also pushed back against the lawsuits.

"Lawsuits against Kia by municipalities are without merit," the statement said. "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."

The company directed customers to ksupport.kiausa.com/ConsumerAffairs/SWLD for information about their eligibility for an upgrade and information about getting a steering wheel lock.

Hyundai did not immediately respond to a request for comment on Milwaukee joining the lawsuit Wednesday.

Spencer declined to explain the legal arguments the city would be making, and as of the press conference had not yet filed records in court.

Milwaukee joining case that will be heard in California

The city will be joining multidistrict litigation that is being heard in federal court in the Central District of California.

The city will be represented by Seattle-based law firm Keller Rohrback LLP and by local law firm MWH Law Group, city leaders said.

The Madison Common Council earlier this month approved a resolution allowing the hiring of Keller Rohrback LLP to sue the automakers.

Spencer said the city will not incur costs from the lawsuit. The attorneys would receive a portion of the money awarded to their clients if they win or settle.

Deputy City Attorney Robin Pederson said he expected the litigation to last a significant length of time.

"The damage didn't occur overnight and the settlement won't occur overnight, either," Spencer said.

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This article originally appeared on Milwaukee Journal Sentinel: Milwaukee announces lawsuit against Kia, Hyundai over vehicle thefts