With five consecutive years of record-setting sales under its belt, Korean automaker Hyundai can ill-afford the reputational hit it is taking right now following the death of a two-year old Ohio girl two weeks ago. But now the company is admitting that the issue has injured more people than they previously said.
The child was crushed by one of the third-row rear power folding seats in her father’s Hyundai Palisade SUV. According to a local news report, it took bystanders several minutes to help the mother free the child from the seat. The girl was then taken to a children’s hospital, where she died.
U.S. 2025 new-vehicle sales by brand
- GM: 2.83 million vehicles (+5.1% year over year); 17.3% market share
- Toyota: 2.52 million vehicles (+8.4% YoY); 15.5% market share
- Ford: 2.18 million vehicles (+5.6% YoY); 13.4% market share
- Hyundai: 1.84 million vehicles (+7.9% YoY); 11.3% market share
- Honda: 1.42 million vehicles (+0.6% YoY); 8.8% market share
Source: Cox Automotive
Akron police body camera footage shows the responding officer can freely move one half of the back seat, while the other is locked in the down position.
Hyundai responded to the incident by recalling nearly 70,000 Palisade and Calligraphy trim vehicles while also issuing a stop-sale order on them. The company says that in certain situations, the second- and third-row power seats may not detect contact with an occupant and that “customers should avoid pressing the setback button during entry and exit.”
While the stop sales order is limited to the U.S. and Canada, Korean-language YouTube videos and comments suggest this issue is not confined to the West.
Hyundai
Hyundai says Palisade SUV defect injured four more people than previously reported
On Friday, Hyundai made public four previously unreported minor injuries of persons being trapped by the rear power seats in its new Palisade SUVs.
Hyundai also said it has 17 unique vehicles with defect claims and that it is beginning to roll out an over-the-air software update to improve system response to passenger contact, introduce additional operating safeguards, and enhance overall system safety.
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The Hyundai Palisade had a record-breaking year in 2025, selling nearly 124,000 units in the U.S. alone, representing about 59% of its global sales. That was a 13% year-over-year increase for the SUV.
The 2026 model was redesigned to be taller and roomier, which, according to The Car Guide, makes “access to the rear seats and comfort in the third row” improved.
Despite the billions Hyundai has poured into expanding its U.S. manufacturing footprint, the Palisade is primarily manufactured in Korea at the Ulsan plant in South Gyeongsang Province.
According to TCG, this is done to “ensure price stability and more consistent availability” in the growing U.S. market; meanwhile, the Ultimate Calligraphy trim is the main focus of the company’s marketing in Canada.
While the fatal Ohio incident occurred on March 7 and the company issued its recall and stop-sale order on March 13, the public had been discussing this issue for months prior to the incident.
Korean YouTuber pointed out back seat safety flaws nearly a year ago
Even though nearly 60% of the Hyundai Palisade SUVs sold last year were in the U.S., the vehicle still has a significant fanbase in its home country, and at least one YouTuber was very underwhelmed by the product.
In a video posted 11 months ago, whose title is translated to “The new Palisade’s flaws are truly disappointing. Experienced firsthand by the owner”, one YouTuber breaks down the issues with the third row seat. It is the first thing he addresses.
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“Even if a person is sitting in it, there is no sensor, so if you press the folding button, it will just fold. If it were manual, you could physically block it, but because it is electric, even an adult would not be able to withstand it and get hurt. If you are wearing a seatbelt, it can be very dangerous because it is difficult to get out,” he states while displaying just how powerful the automatic folding mechanism is.
“If you assume there are children in the second row, you might be a little worried that the seats might fold and cause a terrible accident. In fact, there have been several similar problems in the market,” the video states while showing Korean YouTube comments of people seemingly saying the same thing.
The YouTuber says that Hyundai “says this is normal, so everyone should be aware of this and stay safe.” You can view the video here.
Hyundai did not immediately return a request for comment from TheStreet.
Hyundai sets new U.S. sales record for fifth consecutive year
Hyundai followed up a strong 2024 with an even stronger 2025 as the Korean carmaker announced its fifth consecutive year of record annual retail sales.
Hyundai sold 772,712 vehicles in the States last year on the way to selling more than 900,000 cars globally.
Hyundai reports that electric vehicles accounted for 30% of its total sales, including its best-selling EV, the IONIQ 5, which was purchased by more than 47,000 Americans last year.
While Hyundai is a foreign company, it has a large manufacturing footprint in the U.S.
Hyundai’s Alabama plant, the company’s first U.S. facility, was built in 2005 and employs approximately 4,200 people. The plant has assembled more than 6.2 million vehicles since its inauguration and produced nearly 360,000 last year.
Kia, Hyundai’s sister company, also reported record U.S. sales for the third consecutive year.
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