Hyundai Palisade joins the hunt for family fun

COEUR D'ALENE, Idaho — To inspire the designers working on Hyundai's biggest and boldest crossover, design chief Chris Chapman asked his team to bring in photos from childhood family outings.

For one designer, the special memory was digging the family car out of the snow at California's Mammoth Mountain. For another, it was a road trip to Durango, Mexico.

One black-and-white photo shows a station wagon full of kids peering out of the rear window below a roof rack stacked with luggage.

Hyundai's new three-row hauler, the Palisade, is aimed squarely at American families in need of a sturdy vehicle to make their own memories, and it comes with a third row that's much more comfortable than the rear seats of the past. It is to start arriving at dealerships this month.

"We're talking about a vehicle that sort of takes care of your family," said Chapman, senior chief designer at Hyundai Design North America in Southern California, where the Palisade was conceived. "A design is really successful when it can get really personal."

Hyundai's new styling strategy is to create unique products with a family resemblance, rather than simply smaller or larger version of the same look. "We're working with more of this idea of the concept of chess pieces, where each piece has its own role to play," Chapman said. "And so today, we're talking about the king."

Brian Smith, COO of Hyundai Motor America, expects a quick win: robust sales that he thinks can eclipse the breakout launch of the rugged Kia Telluride, which shares a platform and drivetrain with the Palisade. The Telluride sold 6,273 units in May, its fourth month on the market.

"Telluride was designed from the beginning as a vehicle that would be positioned more for off-road capability," Smith told Automotive News last week at the Palisade media launch here. "Palisade, which is very capable off-road, really took the approach that we want to be the vehicle for a broader sense of the market."

And that meant going big, Smith said, because buyers in the market prize interior space. At 196.1 inches long, the Palisade is 3 inches longer than the vehicle it replaces, the Santa Fe XL. It's slightly longer than the 2020 Toyota Highlander and about 3 inches shy of the redesigned Ford Explorer. Overall, it's close to the dimensions of the roomy Honda Pilot.

"This was designed for the American market," Smith said. "That is what people want here — they're used to having space."

Somewhat surprisingly, the Palisade has been a hit in Hyundai's home market of South Korea, with a monthslong waiting list since its launch there in December.

With standard seating for eight people, the Palisade is Hyundai's "full-nest family" vehicle — the flagship for a brand that is going all-in on crossovers, big and small. The subcompact Venue, to arrive at dealerships before year end, is at the smaller end of the smallest crossover segment.

"The product research shows where all the growth has been," Smith said. "Midsize and entry CUVs are the two fastest-growing now. There's a lot of competition in the compact segment. What's new and different in attracting people are the higher and the lower end."

In addition to the Palisade's sleek styling and near-luxury amenities in the fully loaded version, Smith sees the crossover as having a price advantage over competitors. The base SE trim starts at $32,595 and has a V-6 engine, eight-speed automatic transmission, 8-inch touch screen with smartphone integration and a standard safety suite. At the top end of $45,745, the Limited version comes with Nappa leather, dual sunroofs, second-row captain's chairs and 20-inch wheels. Prices include shipping.

On all versions, there are seven USB ports, a cushy ride and adaptive cruise control with lane-keeping assist for longer family outings.

"We're really ready for families to start focusing on that again — taking trips together," said Smith, hinting at the family-themed advertising campaign coming soon for Palisade. "The journey is, in some cases, more important than the destination, and that is what Palisade is really designed for."