Hyundai Motor Co. has initiated a voluntary recall of 568,576 Palisade sport utility vehicles in the United States, covering model years 2020 through 2025, after National Highway Traffic Safety Administration testing revealed that side curtain airbags for third-row passengers may deploy improperly in a crash. The supplier, Autoliv AB, is redesigning the airbag inflator module and finalizing parts replacement procedures. Owner notification letters are slated for mid-March, with Hyundai expecting to absorb accessory, repair and logistical expenses estimated between $120 million and $150 million, potentially pressuring free cash flow in the current quarter.

In its latest quarterly results, Hyundai Motor reported net income that fell by roughly 50% year-over-year, as U.S. tariff measures imposed under Section 301 cost the company approximately $2.87 billion in 2025. Management warned of a comparable tariff impact in 2026, forecasting an aggregate headwind of $5.5 billion from trade duties and foreign-exchange translation. With operating margins compressed by higher steel and semiconductor costs, investors should watch for further margin restoration efforts, including price adjustments, local production ramp-ups and hedging strategies slated for announcement in the upcoming investor day.