Hyundai has issued a global ban on sales of its flagship SUV following the death of a child in the US.
Top quality sales and delivery 2026 Hyundai Palisade calligraphy were stopped in North America, Korea and Australia before a recall was issued to fix a problem with the power second- and third-row seats, which Hyundai said “may not properly detect contact with an occupant or object as intended.”
“Hyundai is aware of a tragic incident involving a Palisade,” Hyundai Motor North America (HMNA) said in a statement on Friday (March 13). Reuters reported that a two-year-old child died in Ohio, USA, on March 7th.
“While Hyundai does not yet have full details and the incident is still under investigation, a young child was killed. Hyundai extends its deepest condolences to his family.”
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The second-generation pure hybrid Palisade (LX3 series) was launched in Australia in September 2025 exclusively in the flagship Calligraphy variant. It was priced at $89,900 (excluding on-road costs) in eight-seater form or $90,900 plus on-roads in seven-seater form.
A cheaper eight-seat Elite class was added this month, priced at $76,500 plus ORCs.
The new entry-level Palisade Elite – and all versions of the previous generation Palisade in the LX2 series – are not affected by the sales ban and impending recall because, unlike the also affected Palisade Limited sold in the US, it does not have power rear seats.
“Hyundai Motor North America is discontinuing sales of the 2026 Hyundai Palisade Limited and Calligraphy trim levels in the United States and Canada due to an issue with the power second- and third-row seats,” the Korean automaker’s U.S. division said.
“In certain situations, these seats may not detect contact with an occupant or object as intended. This condition may occur when power folding the second and third row seats and when using the one-touch tilt and slide second row function.”
“Hyundai is also in the process of filing a recall for these vehicles with the National Highway Traffic Safety Administration (NHTSA).
“Hyundai strongly recommends owners use caution when operating the second and third row power seat functions and ensure that no people or objects, including children, are in the seat or in the seat folding area before operating the power seat. When using the second row one-touch tilt and slide function to access the third row, customers should avoid pressing the seatback button when entering or exiting the seat.”
“Hyundai is proactively contacting current owners to advise caution when using the second and third row power seat features and to ensure that no people or objects, including children, are in the seat or seat folding area before operating the power seat.”
In a statement released today (March 16), HMCA said about 2260 vehicles were affected in Australia and that Hyundai was developing an “interim” over-the-air software update “to improve contact detection and increase system security”, which is expected to be available in late March ahead of a physical recall.
Hyundai Motor North America said the details of this recall are still being finalized before being submitted to NHTSA. It will include approximately 68,500 MY26 Palisade vehicles, including 60,515 in the U.S. and 7,967 in Canada, where Hyundai said its dealers will “offer interested customers a rental vehicle until a comprehensive solution is available.”
“In the meantime, Hyundai is developing an over-the-air software update that is expected to be available in late March. While this update is not a permanent recall repair, it is intended to improve the system’s response to occupant or object contact, introduce additional operational safety measures and increase overall system safety,” Hyundai Motor North America said.
“Hyundai’s top priority is the safety of its customers. Further details on the interim software update and final recall repair will be provided as they become available.”
Affected owners can contact Hyundai Australia customer service by clicking here, emailing customercare@hyundai.com.au or calling 1800 186 306 Monday to Friday between 8:30am and 7pm (AEST).
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