UPDATED: Hyundai Issues Stop Sale for Top Two Trim Levels of 2026 Palisade

by Michael Strong

Published: March 16th, 2026

hyundai issues stop sale for top two trim levels of 2026 palisade

Hyundai Motor North America issued a stop sale of its 2026 Palisade Limited and Calligraphy trim levels to all of its dealers due to a problem with a second- and third-row power seats that have caused at least two injuries, including a fatality.

According to the company, the seats may not detect an occupant in the seat while using the power function, including the second-row one-touch tilt-and-slide function.

The company is also preparing to issue a recall for vehicles already sold. In all, the recall will cover 68,500 Palisades with more than 60,000 of those being in the U.S. The recall repair is still in development so Hyundai is urging owners not use the power functions while a person, especially a child, is actually sitting in the seat.

“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.”

A review of National Highway Traffic Safety documents shows 26 complaints filed about the new Palisade, four of those have focused on the seats. Two of those reveal injuries to occupants in December 2025.

“A passenger got into the passenger side middle row seat and the seat fold up button was accidentally bumped while the person was trying to get situated and buckled,” according to one report filed Dec. 30, 2025, from Cove, Oregon.

“The seat began moving and folding forward, pinning the passenger between the seat they were in and the back of the front seat. 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. I have not had the dealer look at this yet as we live almost 3 hours away from the nearest one.”

The other complaints filed report third-row passengers being pinned in place by one of the second-row seats reclining. In one instance, a dealer told the owner there is no sensor in place to tell the seat to stop reclining. It’s unclear if that’s true, as Hyundai said the seats are supposed to be able to detect contact.

Update — Kia replied to a TTAC query after publication, offering a statement. "Kia 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."

[Images: Hyundai]

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#Hyundaistopsale #HyundaiRecall #Hyundaifatality #Hyundaipowerfoldingseats #HyundaiNHTSA #Hyundaideath

Michael Strong

Michael Strong has spent more than 25 years writing about the automotive industry. A Detroit-area native, he’s written about everything from local car shows to product reviews to financial news. Currently he writes and edits for a variety of national and local publications. He’s also a longtime member of the Automotive Press Association and the International Motor Press Association, and a graduate of Georgia Southern University. Hail Southern! Despite a love for ’70s land yachts and BMWs from the late ’80s and early ’90s, his personal vehicle is neither of those.

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6 of 15 comments

EBFlexing on ur mom on Mar 16, 2026

What are the eATPs on a stop sale? Asking for Bd2

3 Reply
- Bd2 on Mar 16, 2026
  
  I have been busy writing a musical about the Romance between Hyundai and TTAC. Stay Tuned and please contact your Hyundai Dealership for further details.
  
  3
MaintenanceCosts on Mar 16, 2026

Very surprised to learn the Telluride doesn't have the power folding third row seat, which kind of seems like table stakes in this class these days.

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- See 2 previous
- Bd2 on Mar 16, 2026
  
  It does have that option? You are looking at a lower trim. This isn't a Grand Highlander; Telluride has opulence, features and class.
  
  2
- MaintenanceCosts on Mar 16, 2026
  
  Then why did Kia PR reply to TTAC: "Although there are no Kia vehicles equipped with 3rd row power seats..."
  
  Like
- Bd2 on Mar 16, 2026
  
  ^ ANAL. According to my information from the FBI, all Kia Tellurides have power third row folding features standard. Don't listen to that b**tard.
  
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