• Nov 18, 2009

Hyundai Veracruz – Click above for high-res image gallery

Hyundai is on a mission to expand its American market share. And so far, the going's been good for the Korean automaker, which has been taking the fight to its Japanese rivals with increasing ferocity. Now reports indicate that Hyundai-Kia is looking into building a third assembly plant in North America. Only it probably won't be in the United States – like its existing plant in Alabama and the one being built in Georgia – and it won't be in Canada either; sources say the third plant is likely to end up in Mexico.

The reports are apparently substantiated by the Mexican government, which is understandably keen to encourage foreign investment. If and when it goes online – it's targeted for 2013 – the plant could be capable of churning out 150,000 vehicles annually, helping Hyundai quadruple its North American output by 2013. The plant could be used to produce the Hyundai Accent and Kia Rio for North American consumption, but not the Veracruz crossover – which may prove a little confusing, considering that the location Hyundai's looking at is in Veracruz, Mexico.

UPDATE: Hyundai has released the following statement regarding a possible third plant in NA.
"The recent report of Hyundai Motor Co. planning an investment in a Mexican manufacturing subsidiary is completely groundless. Neither HMC nor its affiliates in the Hyundai-Kia Automotive Group have any plans to invest in manufacturing operations in Mexico at this time."


[Source: Inside Line]


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    • 1 Second Ago
  • 30 Comments
      • 5 Years Ago
      Newsflash:

      Ford and the other "Big 3" also build cars in Mexico. So not sure why someone would go to Ford to show their displeasure over cars being built in Mexico.

      Also, Kia's plant isn't being built; it started regular production this week.
      • 5 Years Ago
      Fear of the UAW means no manufacturer will want to locate its plants in Michigan.
      • 5 Years Ago
      Was a happening. Why is up with all bad engrish conversing by pls?
        • 5 Years Ago
        Peut-être parce que nous ne sommes pas tous aussi ignorant que toi!

        Google it, but my 3rd last word is a dead giveaway.

        Cheers!
        • 5 Years Ago
        I donuts no.
      • 5 Years Ago
      Let me be the first (and probably only one to say it), but good for Mexico. They need the jobs way more than we do.
        • 5 Years Ago
        unemployment rate of Mexico is a pretty low. (5.2%)
        US (10.2%)

        http://en.wikipedia.org/wiki/List_of_countries_by_unemployment_rate
        • 5 Years Ago
        First, I don't necessarily trust the Mexican government about, well, pretty much anything. Second, more good jobs like this plant will bring ups the standard of living as it causes labor to be worth more. I don't think there will be any disagreement that there is a huge disparity in standard of living between Mexico and the USA. Third, the current economic situation probably has driven jobs to Mexico, causing them to benefit. Once sunnier times arrive those jobs could very well move back to the USA, Canada, etc.
      • 5 Years Ago
      Unfortunately, places like Michigan and Ohio who really need the jobs will never see another auto plant built thanks to the UAW……
        • 5 Years Ago
        @hypermiler

        >Hyundai sells like 700 Accents per year in Korea, no point in building Accent in a place that doesn't sell.

        Only low wage countries could support sub $10,000 car production.

        Finally a comment with brains. thanks!!
        • 5 Years Ago
        You guys don't get it , we are talking about the "b" segment!!!!
        • 5 Years Ago
        The UAW is the scourge of the American auto industry...similar to how the teachers unions are make public schools blow (see rar's comment)
        • 5 Years Ago
        re: hokieflea,

        HA HA HA! That was fantastic...lol. +1
        • 5 Years Ago
        Why doesn't Michigan and Ohio adopt anti UAW policies double the state tax on Union workers and adopt Right to work laws.
      • 5 Years Ago
      Im and live in Mexico. Probably the factory will be installed in the center or north of the country, where all the major automotive industries and suppliers are (VW, Ford, Chrysler, GM, Nissan, Honda). The location in Veracruz is not good, as is not close to the suppliers in central Mexico, and right now everybody is looking to decrease operation costs, and as the logical thing to do would be to take advantage of using the Ocean Pacific ports in Mexico to get other supplies from Korea to the factory and from there, to move the finished product from the the factory to USA and Canada by railroad as other manufacturers, using the central railroad that goes all the way up, operated by KCS. The only logical consideration for a plant in Veracruz would be to exclusivelly export the product for Europe. But is not a automotive zone and there are no suppliers and factories from this industry in that area.
      • 5 Years Ago
      Hyundai I own one of your models , a 2007 Hyundai Sonata and I am going trade it in for a 2011 Hyundai model next year or keep it till it is paid off in 2012 and just buy a new 2012 Hyundai model or even kia model for that matter, BUT IF HYUNDAI YOU CAN'T GIVE THE JOBS TO THE ONES HERE IN THE USA WHO ARE BUYING YOUR PRODUCTS THEN, I'LL HAVE TO CROSS SHOP AT FORD AND NOT BUY ANTHER HYUNDAI EVER AGAIN !
        • 5 Years Ago
        Got to love "Buy American" or "Buy Union". It just a mutation of the entitlement mentality that caused this economic crisis and is bound to cause a few more before people figure out what the problem is.
        • 5 Years Ago
        For your information and your and many others here displeasure (too bad for you) , Mexico has Ford , Chrysler , Toyota , Honda , Toyota , Volkswagen , Chevrolet , Nissan , Renault and soon a Fiat and Hyundai plants , so if you feel so patriotic go buy an American breed horse =). And if you love Canada as much as so many Americans seem to love here , go move up there and pledge Allegiance to their flag.
      • 5 Years Ago
      You make yourself look like a fool - have you considered that perhaps Rar is not from Amurica?
      • 5 Years Ago
      This is ridiculous. Hyundai should stop build overseas factories. Don't fall toyota's mistake.
        • 5 Years Ago
        Agree, just open a non- union plant in the South.
        • 5 Years Ago
        Maybe you should learn how to speak Engrish.
        • 5 Years Ago
        Toyota fall serious quality problem in recent years. One of the reason is, overseas factories products. overseas factories use overseas auto parts.

        And, Look ar NUMMI case. It is very hard to withdraw.
        • 5 Years Ago
        i'm in south east asia. but, i'm not a south korean.
      • 5 Years Ago
      It's simple. Companies who build products in Mexico don't have to pay $10,000 per year per employee for health insurance. Soon all car companies will migrate. The Prez. of Toyota said recently that the US doesn't get it. Corp.can't can't be left with the burden of health care for whole country.
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