Hyundai Palisade Deliveries Paused in Australia After Power Seat Safety Issue

Hyundai has paused deliveries of the new 2026 Hyundai Palisade (LX3) in Australia following a safety issue involving the vehicle’s power-folding second and third-row seats.

The move comes after a tragic incident in Ohio in the United States in which a two-year-old child died. While the circumstances of the accident remain under investigation, Hyundai has taken precautionary action globally while it develops a software solution.

The issue relates to the automatic folding operation of the Palisade’s second and third row seats, which in certain situations may not detect contact with an occupant or object as intended.

Hyundai says the problem may occur during power-folding seat operations or when using the second-row one-touch tilt-and-slide feature designed to allow access to the third row.

Hyundai Motor Company Australia has confirmed the issue affects the new LX3 generation Palisade, which has recently launched globally.

According to Bill Thomas, General Manager PR, Sponsorship and Events at Hyundai Motor Company Australia, the same precautionary measures being implemented in North America will apply locally.

Key details for Australia include:

• Stop-delivery notice issued to Hyundai dealers for the 2026 Palisade Calligraphy hybrid
• Approximately 2,260 vehicles affected in Australia
• The issue does not affect the previous-generation LX2 Palisade petrol and diesel models
• Hyundai is developing an over-the-air software update expected by the end of March

• Improve detection of contact with occupants or objects
• Introduce additional operating safeguards
• Enhance overall system safety

The stop-sale primarily affects 2026 Hyundai Palisade SUVs equipped with power-folding second and third-row seats, particularly the higher-spec trims.

Reports indicate the following trims are included:

• Palisade Limited
• Palisade Calligraphy

• One-touch tilt-and-slide second-row access
• Fully powered folding third-row seats
• Remote seat folding for cargo access

Hyundai Motor North America confirmed it has issued a stop-sale order on 2026 Palisade Limited and Calligraphy models in the United States and Canada, with a recall currently being prepared in cooperation with the National Highway Traffic Safety Administration (NHTSA).

The recall covers approximately 68,500 vehicles across North America, including:

• 60,515 vehicles in the United States
• 7,967 vehicles in Canada

The company is currently developing both:

1. An interim over-the-air software update
2. A permanent recall repair

Hyundai is urging owners of affected vehicles to exercise caution when operating the power seat functions.

Specifically, drivers should:

• Ensure no passengers or objects are near the seat-folding area before operating power seats
• Avoid using the second-row tilt-and-slide function while passengers are entering or exiting
• Supervise children around power-operated seating systems

Hyundai is urging owners of affected vehicles to exercise caution when operating the power seat functions.

Specifically, drivers should:

• Ensure no passengers or objects are near the seat-folding area before operating power seats
• Avoid using the second-row tilt-and-slide function while passengers are entering or exiting
• Supervise children around power-operated seating systems

Hyundai is contacting owners through multiple channels including email, telematics notifications and direct outreach.

The Hyundai Palisade has become one of the most popular large three-row family SUVs globally thanks to its luxury features, practicality and strong value compared with premium rivals.

But this incident highlights a broader issue with modern vehicles: as more functions become automated, even simple convenience features like power-folding seats must be engineered with extremely robust safety detection systems.

For families shopping for large SUVs, it’s a reminder to always treat power-operated interior systems with caution, particularly when children are nearby.

Hyundai says safety remains its top priority and is working urgently to implement a fix.

Modern family SUVs increasingly include automated interior features designed for convenience, such as:

• Power-folding seats
• One-touch third-row access
• Remote cargo configuration

The Palisade case highlights how even convenience features must meet extremely high safety standards when used around passengers, particularly young children.