Shares of one of South Korea’s largest conglomerates, Hyundai and Kia, have come under pressure after New York sued the makers, claiming many of their vehicles are too easy to steal.
- Among the reasons cited by regulators is the lack of immobilizers, a standard safety feature. They accused manufacturers of prioritizing “margins and profits” over safety, deviating from industry standards.
- Recently, some models of the conglomerates have been the focus of “viral” videos on TikTok, where users have been able to observe easy methods of stealing them, ultimately leading to an increase in thefts in cities.
Hyundai and Kia said they have taken steps to combat theft and are prepared to cooperate with U.S. security and transportation regulators. Shares of Hyundai (HYUD.DE) try to rebound and lose less than 2%. Kia Corp. was one of the worst performing large companies in Korea’s KOSPI index, falling more than 4%.
Hyundai (HYUD.DE). Source: xStation5
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