Hyundai has issued a global stop-sale order on its flagship SUV following the death of a child in the US.
Sales and deliveries of the range-topping 2026 Hyundai Palisade Calligraphy have been halted in North America, Korea and Australia, ahead of a recall to rectify an issue with its power-operated second- and third-row seats, which Hyundai says “may not adequately detect contact with an occupant or object as intended”.
“Hyundai is aware of a tragic incident involving a Palisade,” said Hyundai Motor North America (HMNA) in a statement on Friday (March 13), after Reuters reported a two-year-old child died in Ohio, USA, on March 7.
“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.”
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The hybrid-only, second-generation (LX3-series) Palisade was released in Australia in September 2025 exclusively in flagship Calligraphy guise, priced at $89,900 before on-road costs in eight-seat guise or $90,900 plus on-roads as a seven-seater.
A cheaper eight-seat Elite grade joined the range this month, priced at $76,500 plus ORCs.
The new entry-level Palisade Elite – and all versions of the previous-generation LX2-series Palisade – isn’t affected by the stop-sale order and forthcoming recall because it isn’t equipped with powered rear seats, unlike the Palisade Limited sold in the US which is also affected.
“Hyundai Motor North America is stopping sales of the 2026 Hyundai Palisade Limited and Calligraphy trims in the US and Canada due to an issue with the second and third-row power seats,” said the Korean automaker’s US division.
“In certain situations, those seats may not adequately detect contact with an occupant or object as intended. This condition may occur during second and third-row power-folding operations, as well as during use of the second-row one-touch tilt-and-slide function.
“Hyundai is also in the process of submitting a recall action to the National Highway Traffic Safety Administration (NHTSA) for these vehicles.
“Hyundai urges owners to use caution when operating the second and third-row power seat functions and to ensure that no person or object, including children, is in the seat or seat-folding area before operating the power seat. When using the second-row one-touch tilt-and-slide feature to access the third row, customers should avoid pressing the seatback button during entry or exit.
“Hyundai is proactively contacting current owners to advise caution when using second and third-row power seat functions and to ensure that no person or object, including children, is in the seat or seat-folding area before operating the power seat.”
In a statement issued today (March 16), HMCA said approximately 2260 vehicles are affected in Australia and that Hyundai is developing an “interim” over‑the‑air software update “to improve contact detection and enhance system safety”, which is expected to be available by the end of March, ahead of a physical recall.
Hyundai Motor North America said it’s finalising the details of this recall before they are submitted to NHTSA. It will include about 68,500 MY26 Palisade vehicles, including 60,515 in the US and 7967 in Canada, where Hyundai says its dealers “will offer interested customers with a rental vehicle until a full remedy is available”.
“In the meantime, Hyundai is developing an over-the-air software update that is expected to be available by the end of March. While this update is not the permanent recall repair, it is intended to enhance the system’s response to contact with occupants or objects, introduce additional operating safeguards, and enhance overall system safety,” said Hyundai Motor North America.
“Hyundai’s top priority is the safety of its customers, and additional details regarding the interim software update and final recall repair will be provided as they become available.”
Concerned owners can contact Hyundai Australia Customer Care by clicking here, via email at customercare@hyundai.com.au or by calling 1800 186 306 between 8:30am and 7:00pm AEST Monday to Friday.