Hyundai is resuming sales of recalled 2026 Palisade SUVs after fixing a power-seat issue linked to a two-year-old’s death.
The details: The fix, reported by Reuters, consists of a software update for 2026 Palisade and Palisade Hybrid models in Limited and Calligraphy trims equipped with second- and third-row power seats.
The update makes several changes, including requiring the tailgate to be open to use the seat-stow function and disabling folding and stowing controls on the infotainment screen.
It also requires press-and-hold operation of seat and cargo-area fold switches and includes updated detection logic to improve occupant and object recognition in the vehicle.
Dealers can resume sales of 2026 Palisade SUVs once they have completed the software update.
Why it matters: Hyundai’s fix clears the way to restart sales of a key three-row SUV in the automaker’s lineup, but it also puts added focus on how safety-related software issues can quickly disrupt inventory, customer confidence, and showroom momentum.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
Get insights trusted by 55,000+ car dealers. Free, fast, and built for automotive leaders.
Between the lines: The death of the two-year-old girl in Ohio, which halted sales of the affected Palisade models in mid-March and triggered a recall of 68,500 SUVs, heightens broader concerns about the auto industry’s growing reliance on software in vehicles.
Late-2025 estimates projected that, for the sixth straight year, the number of software recalls in the auto industry would rise above the prior year’s total.
While 47% of U.S. consumers prefer ADAS for safety, 54% of Americans believe new cars have too much technology.
A J.D. Power study found that among the 40% of owners who received a software update, only 27% saw improvement, while 58% noticed no difference.
What they’re saying: “We are watching a pivotal moment in history,” asserts Todd Warren, an adjunct professor of Computer Science at Northwestern University who tracks the NHTSA-reported software recalls, per Forbes.
“Automakers will either fold under the weight of their own technical debt or emerge with a significant, competitive edge given better quality and methods of dealing with issues in the field.”
Bottom line: Hyundai’s update may resolve the immediate sales stop, but the episode underscores how software-related safety problems can create dangerous and costly disruption for dealers. Getting affected inventory back on sale is important, yet the larger takeaway is that trust, execution, and recall response are becoming just as critical as product appeal.
A quick word from our partner
“Mostly accurate” isn’t a real number.
Behind every financial statement is a system juggling inconsistent data, manual processes, and too many points of failure.
The result?
Numbers that look right, but aren’t fully reliable.
We unpack this with Jen Speerbrecher in last week's CDG podcast:
"DMS is Not the Truth!” The Unspoken Dealer Accounting Secret Costing Thousands (+ How to Fix it)
