Hyundai Lifts Stop/Sale Order on 2026 Palisades After Fixing Power Seat Problem

Michael Strong
by Michael Strong

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
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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  • Bd2 Bd2 on Apr 13, 2026

    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...

  • Tom170698702 Tom170698702 on Apr 25, 2026

    There is just too much tech being put into cars & trucks. How hard is it to fold down a seat when you need to?

  • Vid169489471 The technology exists today to produce a variable color temperature (kelvin) LED lamp. It can vary from 2700k that soft orange look to 6500k the bright daylight with the bluish tint.Since everything in a late model car is computer controlled, it would be an easy task to write a few lines of code that enables your vehicle to not only dim down from hi to low beam but to shift color temp down to the 2700k range for oncoming traffic, then back up to 5000k once oncoming traffic has passed. For the operator it would be automatic and seamless. For older cars they could be retrofitted with LEDs that are 2700k on low beam and 5000k on hi beam. As far as standards, there could be a lumens max, and a minimum. Several States already have minimum lumen standards going back to the old incandescent bulbs. Why not update these to national standards.
  • Jam169859557 More regulation is needed for ALL vehicle lighting systems. [list=1][*]The lighting that is most blinding are the rapidly flashing red, blue and amber lights on emergency vehicles. The lights themselves are blinding, flashing so rapidly that it's impossible for even the sharpest eyes to adjust. What's worse, is the nature of the emergency requires a careful view of the area surrounding the emergency vehicle. There is something going on that needs to be seen. More flashing lights is not the solution.[/*][*]Brighter headlights need to be regulated. The tall riding vehicles do not need headlights positioned so high that they blind drivers in lower riding vehicles. And those heasdlights need to be aimed properly. When I first started driving my 2020 Subaru Outback, many drivers would flash their lights, hoping I would dim my lights. This stopped after I performed am easy adjustment that tilted the beam lower. Late model Subaru headlamps are designed with a sharp cutoff that project less glare above the hood line. When the headlights are properly aimed, other drivers are not blinded by the beam.[/*][*]Customized light assemblies make it more difficult to see the marker lights (tail lamps, turn signals and side marker lamps) that have been tinted. There are many municiple codes that prohibit this tinting, but these laws are seldom enforced.[/*][/list=1]Solutions: Tight controls on emergency vehicle lighting. In trying to make these vehicles more visible, a dangerous side effect is reducing the ability of drivers to see the surrounding perils.Headlight design regulations that reduce the height of the headlight assemblies. Just because a pickup truck has a hood that sits 4 feet abouve the pavement, it does not mean the headlights need to be so high. Owneres should maintain proper adjustments to their vehicle headlights.Establish and enforce regulation requiring a illumination standard be followed.
  • Stl170698708 as someone who hates big government, and their interference;but you can add me to the list of people that are blinded by the lights.unfortunately "the poop is out of the horse and no way is it going back in"They have had 5 years to make lights bigger, badder and brighter because in the vehicle work it is go big or go home!Trucks are the worst because so many people use them to express their dominance and that is big, big, big $$ both at the Original Purchase and in the Aftermarket world.If, we are so lucky to get some good government regulation on this it will also take some very good Court enforcement to get the aftermarket people with fines and lawsuits.Much like the EPA did with the Diesel Tuner Industry that felt emission regulations didn't apply to them.This is from someone that owns said pickup truck with the same bright headlights,but i only use the truck when I have too and always turn off the Fog lights when driving in traffic.
  • Art65765977 I saw a porsche 911 with the most amazing headlights from behind approaching the Sunshine skyway in Florida. The pattern was 108 degrees across sweeping the road like a broom. My brother and I were amazed. I don't know what it looked like from the front but i am sure it was better than American cars
  • Master Baiter This is what happens when you take a chance on a startup auto company. Designing and building cars is hard.
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