By Ryan Felton and Christopher Otts
Hyundai is scrambling to fix tens of thousands of three-row sport-utility vehicles after receiving several reports of occupants becoming trapped by powered rear seats, including one involving the death of a toddler earlier this month.
The automaker last week told dealers to halt sales of the most expensive versions of its 2026 Palisade -- the Limited and Calligraphy versions -- because the powered second- and third-row seats could fail to stop automatically folding when contacting a person or object. The recall affects about 69,000 vehicles in the U.S. and Canada.
On March 7, police in Akron, Ohio, responded to a report of an automatic seat in a 2026 Palisade collapsing on a two-year-old, according to a police report reviewed by The Wall Street Journal.
Bystanders were able to free the pinned child, who wasn't breathing, the report said. The child was taken to a hospital and pronounced dead there, according to the report.
In a recall filing Friday, Hyundai said it learned March 9 of a fatality potentially involving the defect in an Ohio incident. Hyundai said last week that the incident is under investigation and it extends its deepest sympathies to the child's family.
Hyundai has received reports of four minor injuries related to second-row seat operation, and in total has received complaints about 17 vehicles from mid-August through March 9.
According to Hyundai, the issue is related to the SUV's second- and third-row power--folding seats and the second-row seats' powered "tilt--and--slide" function, which is meant to allow easier access to the vehicle.
Hyundai began investigating the issue last November, after receiving three reports of problems with powered seats in earlier months. Based on information available at the time, more investigation was required, the company said in its recall filing. The recall was issued March 12, three days after Hyundai learned of the Ohio incident, the filing said.
Palisade owners should use caution and ensure no person or object is in the seat or seat-folding area when operating the powered functions, Hyundai said. People should avoid inadvertently contacting the one-touch tilt-and-slide button for the second-row seats while entering and exiting the third row, the company said.
Hyundai said it has developed an over-the-air software update to "enhance the system's response to contact with occupants or objects, including additional operating safeguards and to enhance overall system safety." That update started rolling out to vehicles Friday. A final recall solution is forthcoming.
Hyundai dealers will offer rental or loaner vehicles to customers who are interested in one, the company said.
The Limited and Calligraphy versions of the Palisade -- which start at $49,770 and $54,560, respectively -- are the only ones with power-folding third-row seats.
The problem is a black eye for Hyundai as it ramps up sales of the redesigned Palisade, one of its most popular models. The SUV, assembled in the company's home country of South Korea, has garnered critical acclaim since its introduction in 2020. Car-shopping site Edmunds named the Palisade its top-rated SUV for 2026.
Write to Ryan Felton at ryan.felton@wsj.com and Christopher Otts at christopher.otts@wsj.com
(END) Dow Jones Newswires
March 23, 2026 13:27 ET (17:27 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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