Hyundai Palisade Class Action Says Defective Tow Hitch Wiring Harness Can Catch Fire

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A proposed class action alleges 2020-2022 model year Hyundai Palisade SUVs are equipped with a defective tow hitch wiring harness module that can short circuit and catch fire. 

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According to the 40-page lawsuit, many consumers have bought or leased a Palisade specifically for its 5,000-pound towing capacity and trailer sway control feature and paid an additional $475 to $750 for an optional tow hitch and tow wiring harness module accessories, which are necessary to operate a trailer’s turn signals and brake lights. 

The suit alleges, however, that the tow wiring harness module is hampered by a defect that can cause it to short circuit and catch fire. Per the suit, Hyundai admitted to the National Highway Traffic Safety Administration (NHTSA) in a recall letter last August that “[d]ebris and moisture accumulation” on the tow hitch harness module’s printed circuit board can cause an electrical short—and potentially a fire—while a vehicle is parked or driving. 

The recall involved more than 245,000 Hyundai Palisades nationwide, the filing relays. 

In May, more than eight months after publicly acknowledging the existence of the Palisade tow hitch wiring harness module defect, Hyundai purported to dealers and drivers alike that a “permanent fix” was available, the lawsuit says. However, Palisade drivers who’ve contacted Hyundai dealers continue to report being told that “there were no repairs available as Hyundai had not yet supplied dealers with replacement parts,” the complaint states.

“To date, Hyundai has failed to repair or replace the defective tow wiring harness modules in Class Vehicles within a reasonable time,” the case says. “As a result, many Class Vehicle owners have been forced to pay for after-market solutions to restore their cars’ ability to tow.” 

After informing the NHTSA last year of the tow hitch wiring harness module issue, Hyundai urged drivers to park their vehicles outside and away from structures and to return their SUVs to Hyundai dealers for a temporary fix, the suit continues. This interim remedy involved the removal of a fuse to cut the power to the tow wiring harness module, which the case stresses “merely disables rather than repairs” the module. Without power from the tow hitch wiring harness module, a trailer’s turn and brake signals do not work, the filing states. 

“As a result, tens of thousands of Class Vehicles that were equipped with the optional tow package can no longer use their vehicles to tow, as the tow package has been rendered useless due to the ‘fix,’” the case summarizes. 

According to the suit, the Hyundai Palisade recall included no form of compensation for drivers, for either out-of-pocket costs or the diminished value of their vehicles, and amounted to merely “another belated repair attempt.” 

The lawsuit looks to cover all persons or entities who bought or leased any 2020-2022 Hyundai Palisade in the United States. 

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