It’s now been two months since car manufacturers Kia and Hyundai agreed to pay out over $200 million following an influx of stolen cars nationwide. The first attorney to work on the case is from Milwaukee.
James Barton from the Barton Cerjak Law has been working since 2021 on the case. In an interview with WTMJ’s Libby Collins, Barton says the number of Kias and Hyundais stolen compared to other car manufacturers is staggering. In Milwaukee, 2/3 of the cars stolen were either Kias or Hyundais. Earlier this year, Racine reported a jump in stolen Kias and Hyundais as well. In studying the statistics, Barton explained that “thefts…were up like 2500 percent, and I thought it was a typo at first.” Groups such as the Kia Boys have become prominent.
Both Korean manufacturers and publicly traded, Hyundai owns the largest amount of shares of Kia, and both car companies share parts in their manufacturing processes. Barton explained that a safety device, called an immobilizer, is the cause of the thefts. That immobilizer turns off a power source if the correct key is not applied to the steering column on the car, which is normally done through a radio frequency according to JD Power and Associates.
The National Highway Traffic Safety Administration (NHTSA) was tasked to mandate this technology around the turn of the century, but Barton says the Administration didn’t have the power to “mandate design criteria” as part of their “minimum performance standards.” However, NHTSA incentivized manufacturers to utilize this technology, so that the car’s Vehicle Identification Number (VIN) wouldn’t have to be added to parts, saving money to produce parts.
“Virtually all car manufacturers followed suit, except Kia and Hyundai. Then we realized that… a 12 year old could steal a car in a matter of a minute.” Using a USB cord, thieves are able to hotwire the car and drive away.
Between 2011 and 2022, both Kia and Hyundai refrained from adding the technology. Barton says after seeing repeated crashes in the city from as far back as 2021 involving stolen Kias and Hyundais, he felt he should take the case on, “notwithstanding that tens of thousands of people that bought the vehicles and had no idea that (the cars) wasn’t equipped with basic… anti theft measures that have caused so many problems when their cars stolen.” One such incident happened this May when a 14 year old crashed into a school bus outside Morse Middle School; he was driving a stolen Kia.
Barton says part of the $200 million settlement is for “a self imposed recall,” where both manufacturers will have to retrofit the cars they produced to add an immobilizer up to 9 million cars nationwide. Barton says that those that have a Kia or Hyundai that have not had it stolen can utilize a software update; however, a Associated Press report suggests otherwise.
The monetary end of the payment to owners affected remains in court. “The court needs to assure itself that the settlement is fair,” Barton adds, saying it’s very difficult to craft a settlement with so many people involved. Compensation will be broken in several categories. Paperwork is set to be filed July 20th. Similar to other recalls, Barton says cards will be mailed allowing for filings of claims or objections.
