Hyundai Motor has filed a recall notice with the NHTSA for 568,576 Palisade sport utility vehicles in the U.S. market due to a defect in the side curtain air bag deployment mechanism. The company reported that in certain crash scenarios, the inflator may rupture or fail to deploy properly, increasing the risk of injury to occupants. Production years and model details span across multiple 2020–2024 Palisade variants. Hyundai Motor will offer free inspections and repairs at approximately 830 U.S. dealerships, with replacement kits expected to begin shipping in March and owner notifications to start by mid-April.

In its latest quarterly report, Hyundai Motor’s operating profit fell by roughly 50% year-over-year, driven primarily by an estimated $2.87 billion impact from U.S. import tariffs imposed on Korean-made vehicles and key automotive components. The company said higher raw material costs and logistics expenses added further pressure, offsetting strong sales of its electric vehicle lineup, which grew by 37% over the prior year. Hyundai Motor forecasts a comparable tariff-related hit in fiscal 2026 and is pursuing production shifts—such as increased local assembly in Georgia—to mitigate future duties.