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Home > Industry

Hyundai Halts Sales of "The All-New Palisade" Following Fatal Safety Incident in the U.S.

Eunsil Ju Reporter / Updated : 2026-03-15 08:01:45
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SEOUL — Hyundai Motor Company has officially suspended sales of certain trims of its flagship large SUV, "The All-New Palisade," following the identification of a critical safety defect in the power-folding seats. The company is now preparing for a massive recall in both South Korea and North America.

Fatal Incident Triggers Immediate Action
The decision comes in the wake of a tragic accident reported by Reuters. On March 7, a two-year-old girl in Ohio, USA, passed away after becoming trapped in the power-folding mechanism of the Palisade’s rear seats. Hyundai’s internal investigation revealed that under specific conditions, the seat sensors failed to detect the presence of a person or object, continuing to fold despite the obstruction.

Scope of Sales Suspension and Recall
Hyundai announced on March 14 that sales of the affected models would be halted temporarily until safety enhancements are implemented. The company plans to file a formal recall report with the Ministry of Land, Infrastructure and Transport in Korea and the National Highway Traffic Safety Administration (NHTSA) in the United States next week.

The recall is expected to impact vehicles produced up until March 11, 2026. Preliminary estimates suggest the recall will cover:

-South Korea: Approximately 57,474 units
-North America: Approximately 74,965 units

Safety Reinforcement Measures
To prevent further accidents, Hyundai will update the vehicle's software to significantly increase the sensitivity of the anti-pinch sensors. Additionally, the system logic will be modified so that the power-folding function only operates when the tailgate is open, providing a safer environment for operators to monitor the cabin.

"We sincerely apologize for the concern and inconvenience caused to our customers," a Hyundai representative stated. "Our top priority remains the safety of our passengers. We are committed to conducting a thorough inspection of all related systems to regain the trust and satisfaction of our customers."

The "All-New Palisade" has been a global success for Hyundai, with over 100,000 units exported and nearly 60,000 units sold domestically last year. Industry analysts suggest that while this recall is a setback, Hyundai's rapid response and transparency will be crucial in mitigating long-term brand damage.

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Eunsil Ju Reporter
Eunsil Ju Reporter

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