Hyundai Motor Company has issued a global stop-sale order for certain versions of its flagship SUV, the 2026 Hyundai Palisade, following a tragic incident in the US involving a child.
Sales and deliveries of the range-topping 2026 Palisade Calligraphy have been halted in North America, South Korea, and Australia while the company prepares a recall to address a safety issue with the vehicle’s power-operated second and third-row seats.
Tragic incident prompts investigation
According to a statement from Hyundai Motor North America, the company is aware of a fatal incident involving the death of a 2-year-old child in Ohio, USA, on March 7 in the new 2026 Palisade.
Hyundai said the situation is still under investigation.
“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,” said the company spokesperson.
What’s the technical issue?
Hyundai says the problem relates to power-operated rear seat systems. Sometimes, the system may not properly detect an occupant or object, particularly during:
- 2nd-row and 3rd-row power-folding
- Use of the 2nd-row one-touch tilt-and-slide function, which allows access to the 3rd row
Hyundai has paused sales and deliveries of the 2026 Palisade while preparing its recall because of this potential safety risk.
Models affected by the stop-sale

The stop-sale affects the 2026 Palisade Limited and 2026 Palisade Calligraphy. These grades are impacted in the US and Canada, while the Calligraphy version in Australia is also included in the global sales pause.
New entry-level variant not affected
A new entry-level Palisade Elite 8-seater trim joined the range in March 2026, priced at $76,500 (plus on-road costs) and is not affected by the stop-sale or recall. This is because it does not have powered rear seats.
Similarly, all previous-generation LX2-series Palisade models are unaffected for the same reason.
Hyundai issues safety advice to owners
Hyundai is urging Palisade owners of affected vehicles to be cautious when using the powered rear seat functions. Drivers should:
- Ensure no person or object, including kids, is in the seat or folding area before activating the seats.
- Avoid pressing the seatback button during entry or exit when using the second-row tilt-and-slide feature for third-row access.
Hyundai says it is proactively contacting affected owners to warn them about the issue while a solution is being prepared.
Recall and software fix
Hyundai Motor Company Australia recently confirmed that around 2,260 examples in Australia are affected. Ahead of a full physical recall repair, Hyundai is preparing a temporary over-the-air (OTA) software update designed to:
- Improve contact detection
- Add extra operating safeguards
- Enhance overall system safety
The update is expected to arrive by the end of March.
What happens next?
The remedy for the Australian market mirrors the global response strategy being finalised with safety authorities. Alongside the interim OTA update, a full mechanical or software-based recall repair is currently under development and will be performed at no cost once finalised.
How owners can get help in Australia
Concerned Australian owners can contact Hyundai Australia Customer Care:
Email: customercare@hyundai.com.au
Phone: 1800 186 306
Hours: 8:30am – 7:00pm AEST, Monday to Friday
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