Hyundai Motor has initiated a recall of 568,576 Palisade SUVs in the United States after federal safety regulators determined that the side curtain airbags for third-row occupants may deploy improperly in a crash. The National Highway Traffic Safety Administration (NHTSA) flagged the defect, supplied by Sweden’s Autoliv, on the grounds that these vehicles do not meet federal safety standards. Hyundai expects to finalize a remedy by mid-March, at which time owner notification letters will be mailed. While the recall is ongoing, Hyundai is coordinating with dealers to ensure that affected owners receive prompt inspections and airbag module replacements at no cost, minimizing potential liability and reputational damage.

In its most recent quarterly report, Hyundai Motor disclosed that net profit fell by 50 percent year-over-year, largely due to an estimated $2.87 billion hit from U.S. tariffs imposed on imported vehicles and parts last year. The company indicated it anticipates a similar tariff burden in 2026, which will continue to pressure margins and cash flow. Despite strong global sales volumes—up 8 percent to 1.2 million units in the quarter—higher import duties and inflationary cost increases on raw materials have eroded operating income. Hyundai is exploring production shifts and local sourcing strategies in North America to mitigate tariff exposure and preserve profitability over the medium term.