Hyundai announced today its intention to build a new engine plant in the U.S. at its current lone production facility in Montgomery, Alabama. The new facility will cost Hyundai around $270 million and add an additional 520 jobs to the plant. Engines produced at the new facility, which will break ground in September 2008, will supply not only Hyundai's Alabama plant, but also Kia's new plant in Georgia. Considering the numerous labor distputes Hyundai has had to deal with in its native South Korea, moving production outside the country is a move that will hopefully bring the automaker more security in its production process. As an a aside, Hyundai also set 2009 as the date when it will begin producing hybrids, ramping up to an annual production of 300,000 hybrids by 2015. Currently, the only peek we've had at Hyundai hybrid is the Kia Rio Hybrid recently shown at the Geneva Motor Show.
[Source: Automotive News]
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Reader Comments (Page 1 of 1)
PissedOff_Inchon @ Mar 13th 2007 5:06PM
Labor disputes in Korea? Ya don't say.
Are they upset at losing jobs overseas? The value of the Won against the Dollar? What is it?
Mark S @ Mar 13th 2007 5:21PM
2.4 Liter GEMA engine?
Brian W @ Mar 13th 2007 5:52PM
The Won is killing Kia.
Their sales were up last year but lost money the last quarters.
Gary Blomquist @ Mar 13th 2007 6:23PM
Bring on the jobs to America. :)
Barney @ Mar 13th 2007 9:26PM
As long as the quality remains the same, I don't care where they build those fantastic engines.
joe @ Mar 13th 2007 10:55PM
Yah..bring it on in U.S...that would bring a good
impression in the market and will actually boast the confidence of the automakers to build the new engine plant that would surely provide a better performance for the automotive electrical - http://www.carpartswholesale.com/wholesale/electrical/ - parts.
Tal @ Mar 14th 2007 9:13AM
Two times,last week, we passed the new Kia plant location now under construction outside of West Point,GA while driving to and from Valley,AL. This plant will be HUGE when completed. Supposedly the largest single concrete slab in the state of GA. According to our approximate but definitly unofficial measurement, the length of the construction site is 1.8 (+-)mi long.
I-85 runs parallel to the site which is within easy sight as you travel north or south. Apparently construction never ceases.
This will be a definite boost for the sagging local/regional economy which has been textile based forever. Most of the surronding towns were created by and for the Textile industry.There is only a samthering of functioning facilities left.
Thanks to the Koreans for a wise decision in locating Hyundai in Montgomery, Kia in West Point and now Hyundai engine plant in Montgomery.
Thanks to the Korean unions; their strikes probably made easy decisions for management to find U.S. locations just as U.S. unions made it easy for management to find locations in Mexico, Canada,etc.
The world continues to turn smaller and smaller.
wslcrew @ Mar 14th 2007 5:26PM
#1
Last time they went on strike, they were demanding unpaid 'bonus' on top of their annual salaries of around 40~50k. Needless to say, this was upsetting as most of the workers at suppliers are usually paid less than a third of that with no health benefits or retirement plans. The union halted production for well over a month and Hyundai were losing so much money. It's no surprising that the management have started to move production away.
Ben L @ Mar 19th 2007 4:23AM
This is s start of great things to come. A lot of Asian can manufacturers are really coming to get the American market. It just shows how the industry Discount Car Parts, Import Auto Parts and Car Accessories, and other online stores out there to start going global. This world is becoming really small if you ask me.