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Hyundai Issues Stop Sale for Two Top-Trim Palisades Models After Fatality

by | March 16, 2026

Hyundai issued a stop sale for 2 top-trim Palisades models due to a defect linked to two injuries – including the death of a young child. Headlight.News has more.

2026 Hyundai Palisade Limited and Calligraphy are equipped with power folding seats linked to two injuries, including the death of a 2-year-old.

Reports of two injuries, one leading to the death of a young child have triggered an emergency order from Hyundai which put s Stop Sale out for the 2026 Palisade Limited and Calligraphy models.

Those two trims come equipped with power-fold second and third-row seats and the automaker has now received reports where the middle row inadvertently folded up, crushing occupants.

“Hyundai is aware of a tragic incident involving a Palisade,” the company said in a release. “While Hyundai does not yet have the full details and the incident is still under investigation, a young child lost her life. Hyundai extends its deepest sympathies to her family.”

What happened

2026 Hyundai Palisade Calligraphy - profile vineyard

The top-line 2026 Hyundai Palisade Calligraphy trim.

The Hyundai Palisade Limited and Calligraphy models are equipped with power-fold seats. The third row can be remotely operated to provide additional cargo space. The second row has a tilt-and-fold system designed to make it easier for back row passengers to climb in and out of the vehicle.

A sensing system designed to prevent the mechanisms from operating appeared to fail, in one case when a passenger attempted to get into the middle row, hitting the seat fold button while buckling their seatbelt, according to a report filed with the National Highway Traffic Safety Administration on December 30.

In that case, the report filed by an owner from Cove, Oregon said the passenger was then pinned between their seat and the back of the front row. “This incident hurt the passenger who had the force of the seat against her and it frightened her very badly. If the door had been locked, the passenger would not have been able to be helped out and could have sustained worse injuries.

The second incident involved a 2-year-old child from Oregon who was similarly pinned by the folding seat and crushed to death.

Recall to follow

2026 Hyundai Palisade - Debut

The 2026 Hyundai Palisade made its debut at the NY Auto Show in April 2025.

At this moment, Hyundai dealers have been told to stop taking orders for the Palisade Limited and Calligraphy trims. Customers who’ve already purchased those packages will be advised they have to wait to take delivery until Hyundai can come up with a fix.

In the meantime, the Korean carmaker is preparing to announce a recall for approximately 68,000 of the 3-row SUVs equipped with the power-fold seat system. Of those, an estimated 60,000 were sold in the United States, the single largest market for the Palisade.

In the meantime, Hyundai is advising owners of the two affected Palisade trim packages to exercise caution when anyone is sitting in one of the power seats before activating the folding mechanism. Owners also have the option of getting a rental vehicle through their dealers until the problem can be resolved.

More Auto News

The Fix

2026 Kia Telluride - 3-rows seating

Kia said it’s had no reports of trouble with the 2027 Telluride. It does not feature a power-fold third row.

Hyundai is developing a software update designed to better sense if passengers are in the affected seats before the power-fold systems begin to operate.

It expects to have the update available, possibly by the end of March. The repairs will be made using the Palisade’s smartphone-style over-the-air update capabilities. But owners could seek to have the fix installed alternatively at dealers. Either way, the update will be installed at no cost to consumers.

The second-generation Palisade was launched a year ago. A variant is being introduced by Hyundai’s sibling brand Kia as the Telluride. The smaller of the two Korean marques issued a statement noting that it “is aware of Hyundai’s recent decision to recall certain 2026MY Hyundai Palisade vehicles due to an occupant detection issue involving the 2nd and 3rd row power seat assemblies. Although there are no Kia vehicles equipped with 3rd row power seats, Kia is currently reviewing whether any of its vehicles equipped with 2nd row power seats are functionally similar to the recall condition. Kia is not aware of any injury-related incidents involving its vehicles related to this issue.”

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