2020 HYUNDAI PALISADE Complaints

I bought this car used from Albion Ford and I didn't have it 3,000 mile when my check engine light came on. Took it in and they said nothing was wrong with it. A couple days later it stalled in the middle of the road at a stop sign. It happened a mile later, I stopped at the store and there was absolutely not oil on the dip stick. I put 2 quarts in and it was at the very bottom of the dipstick. It's still under warranty and they did an oil consumption test and said it was normal. It's burning 5.5 quarts every 3,000 miles.

Description of IncidentThe vehicle experienced a severe engine system defect and catastrophic internal mechanical failure. The primary symptom prior to the failure was excessive, rapid engine oil consumption between scheduled maintenance windows. The issue was officially confirmed by an authorized dealership service center, where diagnostic testing verified that the engine has critically low cylinder compression in Cylinder 1. The vehicle is currently completely incapacitated, and the disassembled engine block remains at the dealership facility available for inspection upon request. Safety Risk AssessmentA sudden and severe loss of internal engine cylinder compression creates a critical vehicle performance defect, an immediate stall risk, and a catastrophic hazard when operating on high-speed roadways. In this instance, the mechanical failure completely disabled the household’s primary, medically modified means of transport. Because the manufacturer and dealership failed to maintain or provide a structurally or layout-compliant alternative vehicle, a permanently disabled occupant was forced into a tight, non-accommodated cabin geometry. This directly induced severe physical trauma, muscle spasms, and an immediate loss of lower extremity neurological sensation while operating the replacement vehicle. The combination of a catastrophic powertrain failure and a total refusal by the dealer and manufacturer to provide an accessible replacement layout has completely stripped a vulnerable consumer of independent mobility and created a severe, ongoing physical safety hazard.

My properly maintained 2020 Hyundai Palisade suffered catastrophic engine failure at 77,000 miles. Importantly, prior to the engine failure, no check engine lights, low oil warnings, or other warning indicators were active or displayed. The vehicle gave no indication of an imminent catastrophic engine failure or lack of oil. In researching this matter, I have found numerous reports, as well as active and settled litigation, involving Hyundai engine failures and oil consumption concerns. Severe oil starvation due to engine manufacture issues caused a thrown rod which can result in fire. The car was being driven by my teenage son after dark and the engine completely shut down putting him in harm's way in the middle of the road. Hyundai has repeatedly refused my requests for assistance in repairing this known issue due to my being a second owner with a lesser warranty that is given to 1st owners. This issue is a safety concern and a known issue to HCA and should be a recall to insure it stops happening.

On XXX I took my vehicle to Ourisman Hyundai of Bowie because my engine light was on. That same day the Service Adviser (Edson XXX) informed me that the engine was burning oil excessively. They performed an oil change and replaced engine oil gasket and asked me to return after driving 1000 miles. Mileage at the time was 103,380. I return on XXX, mileage was 104,580. [XXX] informed me that vehicle failed oil consumption test. He submitted request for engine replacement. On 11/25/2025 I returned to dealer because engine light came on again, and still no approval for engine replacement. I was informed that Hyundai approved combustion chamber cleaning. The service was complete four days later. However, it did not fix the problem. The engine excessive oil burn still happens as of this report. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

2020 Hyundai Palisade with Lambda II 3.8L GDI V6 (G6DJ) engine experienced complete engine failure due to oil starvation from excessive oil consumption through piston ring bypass. No oil warning light illuminated prior to failure. Engine consumed oil silently between service intervals until catastrophic failure. Vehicle became undriveable. HMA issued TSB 21-EM-003H addressing oil consumption in other Hyundai engine variants but explicitly excluded the Lambda II V6 (G6DJ) from the bulletin's scope despite the same piston ring bypass defect being present. HMA subsequently issued Campaign 9C9 referencing Palisade oil consumption but with no defined remedy and inadequate owner notification. Vehicle was purchased as a Certified Pre-Owned Hyundai. At time of CPO sale, HMA had documented knowledge of the Lambda II oil consumption defect. HMA denied warranty coverage for engine replacement, estimated at $12,000. HMA's own TSB establishes 1 quart per 1,000 miles as the threshold for defective consumption. Independent engineering analysis confirms the Lambda II G6DJ piston ring geometry produces oil bypass consistent with that defect threshold. Engine is available for inspection upon request. Defect was confirmed by HMA-authorized dealership oil consumption test. No warning lamps appeared prior to failure. This defect is believed to affect a large number of Lambda II-equipped vehicles sold in the [XXX]. Prior federal class action litigation (XXX v. Hyundai Motor America, C.D. Cal.) documented HMA's corporate knowledge of the Lambda II oil consumption defect prior to the date of this vehicle's CPO sale. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

My vehicle is subject to open safety recalls involving seatbelt and third-row airbag systems. The seatbelt defect has resulted in seatbelts becoming unlatched while my children were restrained in the vehicle. The third-row airbag recall affects occupant protection in a collision. Hyundai has been unable to repair the vehicle and has informed me they are still searching for parts. My case was opened on April 7, 2026, and no repair date or loaner vehicle has been provided. I transport minor children, including children with special needs, in the second and third rows of this vehicle. I believe the vehicle presents an unreasonable safety risk due to the inability to complete recall repairs within a reasonable timeframe. I opened a case with Hyundai 4/7/26 and have included all emails between us where they tell me there are no parts available and have said they will not assist me with safe transportation for my children. This recall is almost a year old at this point.

There has been a recall issued on the 3rd row air bags for 6 months with no remedy still available. NHTSA Recall Number 26V034000 was issued in Jan 2026, and as of today, the manufacturer still not released a remedy.

I have a 2020 palisade limited with the self leveling shocks. I have about 78,000 miles on the car. I am on my second set of replacement of the rear shocks. Well, guess what? I’m starting to hear that clunking noise again. I love my palisade but quickly becoming tired of this issue. I relaced the shocks last summer (Aug 2025). So, just less than one year after the replacement the noise is back and the smoothness of driving is gone. Every hole feels extremely rough.

My vehicle is unusable due to the 2 recalls, Hyundai has taken control of the vehicle. Recall 292 does not have a fix and the seat belt recall has a shortage of parts. I have been trying for months to get this corrected.

"The front view camera (FR_CMR) failed due to an internal control chip defect. The component is available for inspection — it is currently at the dealership. Multiple ADAS safety systems were simultaneously disabled, including Forward Collision-Avoidance Assist, Lane Departure Warning, Lane Keep Assist, Driver Attention Warning, and High Beam Assist. This puts both the driver and other road users at risk by removing all active collision prevention and lane keeping systems while driving at highway speeds with no backup warning. The problem has been confirmed by the Hyundai dealership via GDS diagnostic scan showing two DTCs: C160649 (ECU Software Error – Front View Camera) and C180581 (LKAS CAN Signal Error). The vehicle has been inspected by the dealer. Dealer repair order quotes $1,511.87 for camera replacement and calibration. Warning lights for Forward Collision, Driver Attention Warning, and High Beam Assist appeared on the instrument cluster and have remained on continuously. Systems have been disabled since the warning lights first appeared. This is a known internal control chip defect documented in Kia TSB ELE231 (Rev 2, August 2021), covering the identical camera assembly shared across the Hyundai/Kia platform. The same DTCs and same fix — front camera replacement, variant coding, and calibration — are confirmed repaired on other 2020 Palisade Limited vehicles under warranty. Hyundai has not issued a corresponding TSB for the Palisade despite the identical failure mode and shared part. VIN: [XXX] ." INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)