Hyundai Motor Co. has initiated a recall of 568,576 Palisade SUVs in the United States after the National Highway Traffic Safety Administration flagged a defect in the side curtain airbags for third-row occupants. The recall covers model years 2020 through 2025 and stems from airbags supplied by Sweden’s Autoliv, the world’s largest airbag and seatbelt manufacturer. Federal regulators warn that the affected airbags may deploy improperly in a crash, causing these vehicles to fail to meet U.S. Federal Motor Vehicle Safety Standards. Hyundai says a remedy is under development and owner notification letters will be mailed in mid-March, with repairs provided free of charge when available.

In its latest quarter, Hyundai reported net profit that plunged by roughly 50% year-over-year after President Trump’s tariffs on imported steel and aluminum cost the automaker an estimated $2.87 billion. The company warned investors to expect a similar tariff burden in 2026, projecting another multi-billion dollar hit. Despite broad growth in global vehicle sales, higher input costs lifted material expenses by more than 15% over the prior year’s period, eroding operating margins. Hyundai said it is exploring price adjustments, local sourcing expansions and production shifts to offset the impact.