Hyundai Lifts Stop/Sale Order on 2026 Palisades After Fixing Power Seat Problem
Weeks after Hyundai issued a stop/sale order and a recall affecting more than 60,000 2026 Palisade models due to a problem with the power folding second- and third-row seats, the company’s given dealers the all clear to resume sales.
The seats in the Calligraphy and Limited models — the top two trim levels — had a glitch where they may not stop folding down, even if there was a person or large object in the seat. A 2-year-old girl was killed in one instance. In a rare public acknowledgement, Hyundai issued a statement about the death.
“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.
In addition to the recall notice from mid-March, Hyundai sent messages to owners with over-the-air capable vehicles informing them about the problem.
Hyundai developed a fix for the problem and lifted the order preventing dealers from selling the company’s flagship SUV last week. The automaker sent out an over-the-air update that resolved the original issue. Additionally, other changes to the functionality of the seats have been made to ensure the problem doesn’t crop up again.
For example, the seats cannot be folded flat unless the liftgate is open at the same time. Some buttons have also been converted to press-and-hold rather than a one-touch operation. Additionally, owners will no longer be able to fold or stow seats using the infotainment touchscreen on the dashboard.
Palisade owners enrolled in Hyundai’s BlueLink program can download and install the new software by going into the “General” settings in the infotainment center and selecting “Software Info/Update.” From there, just follow the on-screen instructions to download the update. If not in BlueLink, call the nearest Hyundai dealer and make an appointment with the service department. The update will be done at no cost to the owner.
[Images: Hyundai]
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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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The decision-maker at Hyundai USA who didn't call for a stop-sale earlier when they were initially alerted to the issue needs to be made an example of...
There is just too much tech being put into cars & trucks. How hard is it to fold down a seat when you need to?