2020 Hyundai Palisade Engine Problems

Hyundai Motor America has been notified of the safety issue through the Mississippi Attorney General’s Office, which required Hyundai to provide a written response within ten business days. Hyundai has not responded to the Attorney General, has not responded to follow‑up attempts, and has not provided any guidance or corrective action. The local dealership reports that Hyundai Corporate will not authorize warranty diagnostics or repairs, leaving the vehicle in an unsafe condition with no manufacturer support.

NHTSA ID

11754648

Incident

Aug 28, 2025

On or about XXX I brought my vehicle into the dealership as my 2020 Hyundai palisade suffered a severe, sudden engine malfunction while driving at highway speeds. The vehicle began shaking violently, losing power, and making loud mechanical noises forcing me to navigate dangerous highway traffic to get it to the dealership. Prior to the failure, in XXX, the vehicle was brought into an authorized dealership as the vehicle would not drive properly, very slow acceleration and the vehicle feeling like it was stalling causing a danger to the road. . The dealership performed an inspection on the vehicle and diagnosed "carbon buildup due to mileage and age," they performed an authorized emissions software update, changed the oil, and performed a paid fuel injection cleaning. The dealership did not issue a safety warning or advise against driving the vehicle long distance back to [XXX]. A few months after this service, the vehicle suffered total engine failure. Professional teardown of the Hyundai Lambbda ll V6 engine show that unresolved carbon buildup and software defects lead to piston ring failure, severe misfires, oil starvation, and sudden loss not motive power. Operating a vehicle experiencing severe mechanical shaking and power loss at highway speeds poses an immediate risk of an accident. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11754052

Incident

Jul 21, 2026

When attempting to use engine braking to control descent on mountain roads, the vehicle failed to slow. Engine RPMs increased and speed increased requiring significant brake usage. Last year the vehicle performed as expected as deceleration was controlled via downshifting with much less brake usage. The only change was the application earlier this year of Hyundai service campaign 9C9.

NHTSA ID

11751687

Incident

Jul 12, 2026

The vehicle suffers from a severe manufacturing defect causing excessive engine oil consumption (burning more than 2+ quarts per 1,000 miles) with no warning lights or oil pressure indicators activating. With little to no warning, I could be driving and experience catastrophic engine failure. This defect creates an immediate safety hazard, as sudden engine seizure or stalling at highway speeds risks loss of power braking and steering, creating an imminent risk of a high-speed collision. The dealership has confirmed the oil consumption issue after we noticed the vehicle stalling and performing sluggishly until the oil was changed.

NHTSA ID

11748518

Incident

Oct 10, 2025

Cylinder 1 and 6 rod bearing failure, plus complete destruction of piston number 6. On highway engine failed, sudden loss of power to move vehicle.

NHTSA ID

11748335

Incident

Jun 1, 2026

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.

NHTSA ID

11748242

Incident

Aug 4, 2025

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.

NHTSA ID

11747733

Incident

Feb 25, 2026

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.

NHTSA ID

11746536

Incident

Jun 14, 2026

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)

NHTSA ID

11744431

Incident

Sep 23, 2025

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)

NHTSA ID

11744101

Incident

Mar 31, 2025

The engine burns oil excessively and the oil light does NOT come on when the oil is low. Our car is right at 90k miles, it began to shudder and malfunction out of the blue while we were driving on the highway. There was absolutely no indication the oil was low. Now the car will not turn on at all. We were in between oil changes. The safety of myself and my family was put at risk because the engine blew with no warning. The vehicle has been serviced repeatedly by Hyundai for this issue, and they are trying to tell us that it is normal for oil to completely burn out in between oil changes.

NHTSA ID

11740050

Incident

May 25, 2026

Premature engine fail. Excessive oil consumption due to piston ring failure. Maintenance has been done on car on regular basis. No check engine light. Carson was services at dealership 4 months ago.

NHTSA ID

11739180

Incident

May 19, 2026

The contact owns a 2020 Hyundai Palisade. The contact received notification of NHTSA Campaign Number: 26V034000 (Air Bags) and 25V607000 (Seat Belts); however, the parts for the repairs were unavailable. The contact stated that the manufacturer had exceeded a reasonable timeframe for the remedies to be available. The contact stated that when driving at various speeds and while idle, the vehicle would shake. The contact had checked oil levels and noticed that there was no oil in the vehicle. The contact had to begin changing the oil every 1,000 miles. The contact looked up the CarFax and learned that the vehicle had a history of oil consumption issues. The vehicle was taken to the dealer, who confirmed that the remedies were not available and then diagnosed an oil consumption failure. The dealer completed an oil consumption and cleaning and advised them to drive 1,000 miles to receive assistance for the engine, as it was at risk of seizing. The vehicle was not repaired. The manufacturer was informed of the failure. The manufacturer informed the contact that the failure was not covered by recall or warranty. The failure mileage was approximately 83,000.

NHTSA ID

11738696

Incident

Sep 11, 2025

Mileage

83,000 mi

Driving down road in early afternoon at about 35 mph. Car began to run rough (jutter) then almost immediately stalled. The car’s engine icon appeared on the screen along with verbiage indicating service engine soon. After about 3-5 minutes, I started the car and drove it directly into a parking lot approximately 100 feet from where the car stalled. I had the car towed to a repair shop in town. The following day the service adviser called after doing diagnostics and indicated the car had no oil (It was approximately 3,400 miles since my last oil change). The technician explained there were some minute cracks in the oil filter cap but nothing that would warrant such a large loss of oil. An oil change was done, the oil filter cap was replaced with an aftermarket cap, and the car was returned to me. I have contacted the service department of the Hyundai Dealership where the car was purchased and am awaiting a call back.

NHTSA ID

11738105

Incident

May 14, 2026

I am filing this complaint regarding my 2020 Hyundai Palisade affected by the recall involving the third-row seat airbag not deploying properly and the risk of occupant ejection during a rollover accident. I purchased this vehicle in December 2024 and have experienced a pattern of ongoing mechanical failures, repeated dealership visits, lack of manufacturer support, diminished use of my vehicle, and financial hardship throughout ownership. Since purchasing the vehicle, I have completed more than 20 oil consumption tests requiring repeated 1,000-mile dealership visits. The issues became so severe that both the engine and transmission ultimately had to be replaced. The unresolved recall has now created an additional major safety concern for my family. Hyundai indicated a remedy was expected by the end of March, but as of now there is still no repair available. This has significantly limited the safe use of my vehicle because the third-row seating cannot safely be used for passengers due to the risk associated with the defective airbag system. This delay is causing financial hardship as well. I intended to use this vehicle through Turo for supplemental income but cannot do so because of the active safety recall. I also have upcoming family travel requiring use of the third row and may now be forced to rent another SUV at my own expense. I currently owe approximately $30,000 on this vehicle and am facing substantial negative equity due to the vehicle’s extensive repair history and unresolved recall status. I am concerned about both passenger safety and Hyundai’s prolonged delay in providing a remedy for a serious safety issue. I am requesting that this complaint be documented as part of the ongoing investigation and oversight regarding Hyundai’s handling of this recall and the delay in providing repairs to consumers.

NHTSA ID

11737964

Incident

Jan 24, 2025

2020 Hyundai Palisade, VIN: [XXX] . Excessive engine oil consumption beginning at ~95,418 miles. Oil drops to critical levels between oil changes, causing engine hesitation, rough running, and Check Engine Light activation — CEL clears only after oil is manually added, confirming oil starvation as the cause. SAFETY RISKS: Engine seizure or stall at highway speed; engine fire from oil burning on hot components; sudden loss of vehicle control; CEL only illuminates after oil is already critical, leaving no safe warning window. DEALER: Vehicle brought to dealership in [XXX] on 8/25/25 (95,451 mi) and Barnes Crossing Hyundai, [XXX] on 4/22/26 (99,969 mi). RO# XXX/1. HMA Case# XXX. Both dealers confirmed abnormal oil consumption. MANUFACTURER RESPONSE: Hyundai Motor America denied all repair or engine replacement solely because the title was transferred from a family member. Hyundai's own XXX (Dec. 2023) acknowledges systemic oil consumption across all Hyundai gasoline engines and mandates a repair protocol including engine replacement. A title transfer does not cause a mechanical defect and Hyundai failed to apply its own TSB procedures before denial. REQUESTED ACTION: Investigate HMA's pattern of denying TXXX remedies after title transfers; compel engine repair/replacement at no cost; evaluate safety recall eligibility. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11737266

Incident

Aug 28, 2025

It is burning much more oil per 1000 miles than the Hyundai website says is normal. It has kept burning oil at a very high and abnormal rate. To the point of having to carry oil while driving. Nothing happened to make this start, it just began!

NHTSA ID

11736804

Incident

Mar 12, 2026

The contact owns a 2020 Hyundai Palisade. The contact stated that he initially began to notice that his engine would consume oil at a rapid pace. As the failure persisted, the vehicle would shudder upon depression of the accelerator pedal as the check engine light appeared on the instrument panel. In addition, the contact stated that white smoke would emit from the exhaust pipe. The vehicle was taken to an independent mechanic where the spark plugs were replaced on two separate occasions due to carbon build up. The vehicle was then taken to a dealer where it remained in their possession for three months before the contact was informed that they were performing an oil consumption test. The contact was advised to bring the vehicle back at 1,000 to continue the oil test. After 1,000, the contact was informed that the engine showed no sign of excessive oil consumption. The contact then stated that while driving at 35 MPH, the vehicle shut off without warning as the contact managed to coast the vehicle into a nearby parking lot. The contact attempt to restart the vehicle; however, the engine failed to start. Due to the failure, the vehicle was towed to his independent mechanic where they diagnosed the vehicle with engine failure. The vehicle was then towed to another dealer(Diehl Hyundai of Sharon-1251 E State St, Sharon, PA 16146) where the vehicle remained in their possession for two months were they replaced the engine and vehicle starter. Upon return of vehicle while driving at 55 MPH, the front end of the vehicle began to violently shake and the contact immediately contacted the dealer. The contact was informed that the vehicle was not test driven before the vehicle was returned due to the excessive wear of the rear tires. Additionally, the contact stated that the steering wheel would shake while driving which would cause the contact to lose control of the vehicle without warning. The dealer refused to offer a loaner vehicle and that they would listen to the engine but could not guarantee any repairs. The contac

NHTSA ID

11736117

Incident

Jul 4, 2023

Mileage

30,000 mi

I recently purchased this vehicle, and shortly after, it began having serious powertrain issues. When I accelerate, the vehicle intermittently loses power and starts shaking violently. It feels like the engine or transmission is slipping or failing. The RPMs surge and drop rapidly, and the vehicle hesitates, jerks, and sometimes briefly slows down before suddenly accelerating again. This creates an unsafe and unpredictable driving condition, especially when merging or driving in traffic. I’m concerned about a loss of propulsion while the vehicle is in motion. My mechanic indicated the issue may involve the torque converter clutch not engaging properly (possible “stuck off” or circuit performance issue), which would explain the shuddering and inconsistent power transfer. Despite how severe this is, there are no warning lights or check engine light, and no diagnostic codes, which raises concern that the failure is not being detected by the vehicle’s onboard systems. I am also experiencing low and fluctuating engine oil levels even after topping it off and a recent oil change, which may indicate an additional engine-related defect. The vehicle has a clean title and no accident history. - Failed system: Powertrain (engine/transmission), suspected torque converter clutch malfunction. Vehicle is available for inspection. - Safety risk: Intermittent loss of power, hesitation, and surging creates a high risk of collision, especially in traffic or at highway speeds. - Confirmation: My independent mechanic has identified as likely a torque converter related issue. - Inspection status: Not yet inspected by manufacturer or insurance. - Warnings/symptoms: No warning lights or codes. Symptoms began shortly after I purchased and have worsened over time.

NHTSA ID

11735426

Incident

Apr 29, 2026

Component: Engine My 2020 Hyundai Palisade (approximately 155,856 miles) experienced a serious and dangerous engine-related failure that resulted in a vehicle fire. My 16 year old daughter was driving alone at the time of the catastrophic failure and fire. For approximately six months prior to the incident, the vehicle was consuming oil at an abnormal rate with no visible external leaks. This condition persisted without clear cause. While driving, the vehicle suddenly developed a new oil leak, and the engine failed without warning, leaving me stranded on the roadway. Immediately following the failure, the engine compartment caught fire. There were no prior indications of an active oil leak before this sudden failure. The progression from oil consumption to catastrophic failure and fire presents a serious safety concern. This incident created a dangerous situation with risk of injury or worse, and it appears to be more than normal wear and tear. I am reporting this as a potential safety defect involving engine failure and fire risk. Mileage at time of incident: approximately 155,856 miles No prior accident or external cause contributed to the fire.

NHTSA ID

11735010

Incident

Apr 19, 2026

Component: Engine / Engine and Engine Cooling Description: My 2020 Hyundai Palisade (approximately 155,856 miles) experienced a serious and dangerous engine-related failure that resulted in a vehicle fire. For approximately 8 months prior to the incident, the vehicle was consuming oil at an abnormal rate with no visible external leaks. This condition persisted without clear cause. While my [XXX] daughter was driving, the vehicle suddenly developed a new oil leak, and the engine failed without warning, leaving my daughter stranded on the roadway. Immediately following the failure, the engine compartment caught fire. There were no prior indications of an active oil leak before this sudden failure. The progression from oil consumption to catastrophic failure and fire presents a serious safety concern. This incident created a dangerous situation with risk of injury or worse, and it appears to be more than normal wear and tear. I am reporting this as a potential safety defect involving engine failure and fire risk. Mileage at time of incident: approximately 155,000 miles No prior accident or external cause contributed to the fire. INFORMATION REDACTED PURSUANT TO THE FREEDOM OF INFORMATION ACT (FOIA), 5 U.S.C. 552(B)(6)

NHTSA ID

11733631

Incident

Apr 19, 2026

Excessive oil consumption - Hyundai is refusing to issue a recall even tho there was a class action lawsuit

NHTSA ID

11733371

Incident

Apr 22, 2026

My 2020 Hyundai Palisade has an excessive and dangerous oil consumption defect. The vehicle consumes approximately 3/4 of a quart of oil every 1,000 miles. At a standard 8,000-mile oil change interval, the engine loses more oil than it holds between services. At approximately 185,000 miles, my vehicle stalled on the interstate with my family inside the vehicle. Upon inspection, the engine was critically low on oil. I added 5 quarts of oil to restore proper level. Critically, at NO point prior to the stall did the low oil pressure warning light illuminate. The vehicle's oil warning system completely failed to alert me that the engine was dangerously low on oil. This is a dual failure: the engine is consuming oil at an excessive and unsafe rate, and the warning system designed to protect the driver failed to activate when the engine was in a critical state. I have reported this issue to my dealership and filed a formal complaint with Hyundai Motor America. Neither has resulted in a meaningful resolution. Hyundai's internal "acceptable" oil consumption threshold of 1 quart per 1,000 miles is significantly outside mainstream industry standards set by other major manufacturers and appears designed to deny warranty claims rather than protect consumers. This defect poses a direct and serious safety risk. A vehicle stalling on the interstate due to oil starvation, with no warning to the driver, is a life-threatening failure. I am requesting that NHTSA open a formal investigation into the 2020 Hyundai Palisade for excessive oil consumption and oil pressure warning system failure.

NHTSA ID

11732745

Incident

Mar 6, 2026

While traveling to Abilene Tx to see my doctor my check engine light came on. I pulled into the Hyundai dealership and ask the service advisor to plug into my vehicle and let me know what was going on. After he talked to his service manager he advised me that they "where to busy" and the earliest they could get me in would be the next Monday. This was Wednesday. My home is 100 miles from Abilene. I asked if he thought it would be alright and he said sure. I barely made it back to Big Spring before it started clinking and cluttering. It sound horrible. My son said it sounded like it through a rod. He checked the oil and said that I had low oil however my low oil light did not come on. I notified the dealership and was advised that I had to have it towed back to the shop in Abilene which I did. After a week passed I was in Abilene and stopped to check on my vehicle. Needless to say my repairs are in excess of 20K. New engine etc. and rear suspension is out also. After researching I have found I'm not the only owner with these problems. There are numerous complaints about these problems with the Palisade. This is a danger to all who own this vehicle. Fires, accidents and no telling what can affect us. All these vehicles need to be recalled because of the engine that was placed in these vehicles. The engine is eating oil fast. My oil changes were on time. Hyundai and the dealership are unwilling to offer any help in repairing my vehicle. The parts on the suspension are sub standard. I can't believe they are called the #1 SUV in America! Buyers need to be aware of the substandard parts and engine. They also need to be aware the Hyundai doesn't stand behind their product or the dealership either for that matter. I shutter to think of who I could've been on the side of the road with a blown on fire engine. I'm thankful I made it home before the vehicle cratered.

NHTSA ID

11730639

Incident

Mar 18, 2026

Here’s a more professional, structured version of your complaint while still clearly conveying the seriousness of the situation: ⸻ I am writing to formally express my concern regarding a 2020 Hyundai Palisade that I purchased from a dealership less than one year ago, along with an extended warranty. Since the time of purchase, the vehicle has experienced ongoing and significant oil consumption issues. In fact, it has spent a substantial amount of time in the repair shop—arguably more time than it has been in my possession. Despite these repeated service visits, the problem has not been resolved. The vehicle is currently consuming more than 1.5 quarts of oil per 1,000 miles, which is well beyond what would be considered normal. I have completed an official oil consumption test to document this issue. Notably, these problems began prior to even the first oil change after purchase, indicating that the condition likely existed at the time of sale. Despite the documented issue, both Hyundai Motor Company and the extended warranty provider have denied coverage for repairs. As a result, I am left with a vehicle that has a serious mechanical defect and a high risk of engine failure. I invested approximately $29,000 in this vehicle, and I am now facing the prospect of catastrophic engine damage due to a known issue that has been widely reported with similar vehicles. This situation is extremely concerning and has left me feeling misled and unfairly treated. I am seeking a fair resolution to this matter, including appropriate repair, replacement, or compensation, given the circumstances and the documentation supporting this claim.

NHTSA ID

11729642

Incident

Jun 20, 2025