Hyundai Motor Co has initiated a recall of 568,576 Palisade sports utility vehicles in the United States, covering model years 2020 through 2025, after the National Highway Traffic Safety Administration identified that the side curtain airbags for third-row occupants may deploy improperly in a crash. The defect, traced back to supplier Autoliv, means these vehicles do not comply with federal safety standards. Hyundai expects owner notification letters to be mailed in mid-March once a remedy—currently under development—is approved by regulators.

In a separate action this week, Hyundai has recalled 41,234 vehicles across multiple model lines—including the 2025 and 2026 Tucson Hybrid, Ioniq 5, Santa Cruz, Kona, Palisade (including Hybrid), Santa Fe (including Hybrid), Sonata (including Hybrid), and Tucson Plug-In Hybrid—due to a software error that can prevent critical safety information such as speedometer readings and warning lights from displaying. The company plans to deploy an over-the-air software update or complete the fix at dealerships at no cost to owners.

In its latest quarterly earnings report, Hyundai disclosed that profits fell by 50 percent year-over-year, primarily driven by an estimated $2.87 billion adverse impact from U.S. tariffs imposed under the previous administration. Management warns that similar tariff-related costs are expected in fiscal 2026, placing additional pressure on margins as the company navigates global supply chain challenges and currency fluctuations.