Hyundai is recalling hundreds of thousands of Palisade sport utility vehicles because the airbag may not deploy properly, federal regulators warned.

The recall affects Palisade vehicles from the 2020 to 2025 model years. The problem is that the side curtain airbags for third-row occupants in these SUVs “may deploy improperly in a crash,” according to the National Highway Traffic Safety Administration (NHTSA).

Because of this problem, the vehicles do not meet federal safety standards, according to the auto regulator.

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The airbags were supplied to Hyundai by Autoliv of Sweden. The company is from the world largest producer of airbags and seat belts.

A photo of Hyundai’s 2025 Palisade. (Hyundai)

NHTSA said the remedy is currently under development and owner notification letters are expected to be mailed in mid-March.

FOX Business has reached out to Hyundai and Autoliv for comment.

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Hyundai also issued a separate recall this week, affecting more than 41,000 vehicles, due to a malfunction in the instrument panel display. According to the federal auto regulator, a software bug is affecting the dashboard’s ability to display critical safety information, such as the speedometer or hazard lights, increasing the risk of a crash.

A photo of Hyundai’s 2025 Palisade. (Hyundai)

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This recall affects certain 2025 through 2026 model year vehicles, including the Tucson Hybrid, Tucson Plug-In Hybrid (PHEV), Ioniq 5, Santa Cruz, Kona, Palisade, Palisade Hybrid, Santa Fe, Santa Fe Hybrid, Sonata, Sonata Hybrid and Tucson.

“Hyundai Motor Group Metaplant America (HMGMA) is Hyundai Motor Group’s first plant dedicated to the mass production of electrified vehicles located in Bryan County, GA,” the company said in a press release. (Hyundai Motor Group)

Due to this problem, these vehicles are also not found federal safety standards.

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The instrument panel display software will be updated over the air or by a dealer for free.