Hyundai Motor Co. has announced a voluntary recall of 568,576 Palisade SUVs in the U.S. covering model years 2020 through 2025 after the National Highway Traffic Safety Administration (NHTSA) determined that the side-curtain airbags for third-row occupants may not deploy properly in a crash. The airbags, supplied by Autoliv of Sweden, fail to meet federal safety standards and could increase the risk of injury in a side-impact collision. Owner notification letters are expected to be mailed in mid-March, and Hyundai is developing a remedy that dealers will install free of charge once approved. The recall represents roughly 85% of all Palisade SUVs sold in the U.S. during the affected period.

In a separate action, Hyundai has recalled an additional 41,321 vehicles—spanning select 2025–2026 model-year Tucson Hybrid, Tucson PHEV, Ioniq 5, Santa Cruz, Kona, Palisade, Santa Fe, Sonata and their hybrid variants—due to a software error preventing the instrument panel display from showing critical information such as speedometer readings and warning lights. The NHTSA classification cites a heightened crash risk if drivers cannot access real-time speed and system alerts. Owners will receive an over-the-air software update where connectivity allows, or a free dealer visit will be arranged where necessary.

Hyundai reported Q4 earnings and disclosed that U.S. tariffs imposed last year reduced operating profit by an estimated $2.87 billion, halving quarterly net income compared to the prior year. The automaker warned that a similar tariff burden is likely in 2026, and management is evaluating price adjustments and cost-control measures across its global production network to mitigate ongoing duties. Despite a 12% year-over-year increase in global vehicle sales volume, the tariff hit trimmed overall operating margins by approximately 3 percentage points for the period.