MEMPHIS, Tenn. — The city of Memphis is considering filing lawsuits against Hyundai and Kia over the costs of an “epidemic of vehicle thefts,” and against a software company blamed for rising rent.
The items were part of a package of “extraordinary litigation” that a special attorney would be hired to handle, if approved. A resolution to approve that litigation was approved by a City Council committee Tuesday.
According to a proposed ordinance, Memphis has seen a dramatic increase in auto thefts, specifically Kias and Hyundais.
“We do not take litigation lightly. However, the City of Memphis and its police officers have spent significant time responding to thefts of Kias and Hyundais, which is grossly disproportionate to other vehicle theft reports in our city,” a city spokesperson said. “Responding to these thefts has delayed officers from responding to other calls, increased costs to the city, and left many of our residents and visitors without vehicles. We also want a fair rental housing market where our residents can have safe, affordable housing without software influencing rent.”
Memphis police reported 22,000 vehicles stolen in the past two years, and Kias and Hyundais were at the top of the list. MPD and the Shelby County Sheriff’s Office had to pull staff and launch new units to tackle auto thefts.
They claim the manufacturers concealed and failed to remedy defects that made those cars easier to steal, leading Memphis Police to have to respond to a high volume of thefts of these makes.
Hyundai and Kia have acknowledged that a software problem on some of their models made them vulnerable to theft thanks to techniques popularized in a Tik-Tok challenge.
Over the summer, the companies offered free software upgrades to owners, including many in Memphis.
The city also claims there has been a significant increase in rent prices due to a software company called Real Page.
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Much of the rent increases are “likely” due to landlords using RealPage software to set prices, “driving every possible opportunity to increase price,” according to the city’s proposed ordinance.
NewsNation affiliate WREG has reached out to the companies for a response.
Kia said that, to date, 1.27 million Kia vehicles nationwide received a software security upgrade, including an event in Memphis this year, and the company is continuing to let customers know about the upgrade and about free steering wheel locks offered by the company.
But as far as a potential lawsuit, Kia said its vehicles fully comply with federal safety standards, including theft protection:
“As we have said repeatedly, lawsuits filed by municipalities against Kia are without merit. Like all Kia vehicles, the specific models at issue in this case are subject to and comply fully with the requirements outlined in applicable Federal Motor Vehicle Safety Standards, including FMVSS 114 that governs theft protection measures. Additionally, The National Highway Traffic Safety Administration (NHTSA) has publicly stated that it has not determined that this issue constitutes either a safety defect or non-compliance requiring a recall under the National Traffic and Motor Vehicle Safety Act.”
