March 19, 2026
Hyundai Stops Selling the Palisade After a Child’s Death
Hyundai issued a stop sale covering 68,500 Palisade SUVs in the US and Canada after a two-year-old girl was killed by a power seat mechanism in Ohio on March 7. The recall affects 2026 Limited and Calligraphy trims. The defect is in the power seat sensor calibration, which failed to detect contact with a small child during seat adjustment. Hyundai committed to an over-the-air software fix by end of March and is offering rental vehicles to affected owners. The stop sale, rather than a standard recall, halts all new deliveries of affected trims during the start of the spring selling season. Hyundai had just posted a record February with 65,677 units sold. (Hyundai Newsroom; NHTSA)
GM and LG Turn an EV Battery Plant Into a Power Station
General Motors and LG Energy Solution are spending $70 million to retool their Ultium Cells joint venture facility in Spring Hill, Tennessee, shifting from EV battery production to lithium-iron-phosphate grid storage systems. The plant will rehire 700 workers laid off during the transition, with production resuming in Q2 2026. The pivot is driven by surging demand from AI data centers, which need massive stationary storage capacity. LFP chemistry is cheaper and longer-lasting than the nickel-manganese-cobalt cells used in most EVs, making it better suited for stationary applications. When your EV battery plant finds a better customer than EV buyers, the market is sending a message. (Electrek; Automotive News)
Toyota Recalls 550,000 Highlanders for Seat Back Failure
Toyota is recalling 550,007 Highlander and Highlander Hybrid SUVs from the 2021 to 2024 model years after discovering that second-row recliner assembly teeth may not fully engage. The defect could allow seat backs to move unexpectedly in a crash, increasing injury risk to rear passengers. The issue stems from a supplier manufacturing defect, not a Toyota design flaw. Dealer repairs using replacement recliner assemblies will begin this spring, with owner notification letters mailing April 20. The Highlander is a top-five three-row SUV by volume, and half a million units is a significant chunk of the installed base. (CNBC; Toyota Newsroom)
Ford’s 19th Recall of 2026 Hits EcoBoost Engines
Ford has recalled 47,804 vehicles across 10 models for an EGR valve defect in 1.5L, 2.0L, and 2.3L EcoBoost engines. The root cause is inconsistent laser welding by South Korean supplier Korens, which can cause the valve poppet head to detach and lead to engine stall at highway speeds. No fix is available yet. This is Ford’s 19th recall campaign of 2026, bringing the cumulative tally past 7.4 million vehicles. Affected models include the Explorer, Maverick, Bronco, Bronco Sport, Escape, Ranger, Mustang, Edge, Lincoln Nautilus, and Lincoln Corsair. (Detroit News; Ford Authority)
New Kia Telluride Recalled Weeks After Launch
Kia is recalling 13,499 all-new 2027 Telluride SUVs and 1,371 K4 sedans after discovering that third-row center (Telluride) and rear center (K4) seatbelt buckles may not properly latch. The supplier defect means buckles could appear secured while remaining unfastened. This is the first recall for the 2027 Telluride, arriving just weeks after the redesigned model began reaching dealerships during Kia’s record sales streak. Kia posted an all-time monthly Telluride record of 13,198 units in February. (CarComplaints; Autoblog)
GM Says Chevy Bolt Production Could Run Longer Than Planned
The 2027 Chevrolet Bolt, arriving at dealers now at $28,995, was originally scheduled for roughly 18 months of production at Fairfax Assembly in Kansas City before the plant switches to the ICE Equinox. But Bolt executive chief engineer Mandi Damman told reporters an extension is “possible” if demand warrants it. At $28,995 with 262 miles of range and a Tesla-compatible NACS charging port, the Bolt is the most affordable new EV in America. In a week dominated by EV retreat headlines, the Bolt is a quiet reminder that affordable electrification still has buyers. (The Drive; GM Authority)
House Proposes $250-a-Year EV Road Fee
A House Transportation Committee proposal would charge EV owners $250 per year in federal road-use fees, with hybrid owners paying $100. For context, the average ICE driver currently pays about $88 per year in federal fuel taxes that fund the Highway Trust Fund. A separate bill, the Fair SHARE Act, proposes a $1,000 one-time fee on new EV purchases plus a $550 battery module surcharge. The Highway Trust Fund faces insolvency by 2028, and the current surface transportation authorization expires September 30, creating urgency behind both proposals. The $250 figure is nearly triple the ICE equivalent, a disparity that will fuel debate. (Autoblog; KFGO)
EVs Already Offset 29% of Iran War Oil Disruption
BloombergNEF estimates that electric vehicles globally avoided consumption of 2.3 million barrels of oil per day in 2025, projected to reach 5.25 million barrels daily by 2030. With the Iran conflict disrupting approximately 8 million barrels per day of supply, EVs are already offsetting roughly 29% of the shortfall. The underappreciated detail: two- and three-wheeled electric vehicles in developing markets account for more oil displacement than passenger EVs in Western countries. China, where EV sales exceeded 50% market share in 2025, drives the bulk of savings. (Bloomberg; TT News)
Tesla’s Next-Gen AI Chip Hits a 6-Month Delay
Tesla’s AI6 chip, built on Samsung’s 2-nanometer process, has been pushed to late 2027 after Samsung cancelled a key manufacturing milestone. The AI5 chip, which was supposed to arrive earlier, is also delayed to mid-2027. This means the Cybercab robotaxi will launch on current AI4 hardware rather than the next-generation silicon Tesla has been promising. The gap between Elon Musk’s autonomous vehicle timeline and engineering reality continues to widen. (Electrek; The Elec)
VinFast Doubles Deliveries While Western OEMs Retreat
Vietnamese automaker VinFast delivered 196,919 vehicles in 2025, more than double the prior year, with full-year revenue reaching $3.6 billion. Q4 was a record at 86,557 deliveries. The catch: gross margins remain deeply negative at minus 42.5%, improved from minus 57.4% in 2024 but still meaning VinFast loses money on every car sold. Growth is funded by parent company Vingroup’s deep pockets, not operating profitability. VinFast holds 36% of Vietnam’s passenger vehicle market and is expanding rapidly across Southeast Asia, where it ranks among the top BEV sellers in the Philippines, Indonesia, and India. (PR Newswire; Investing.com)
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