• Jan 17, 2011
The millionth vehicle built at Hyundai Motor Manufacturing Alabama rolls off the line in 2009

Every automaker wishes it had this problem: not enough supply to meet demand. The solution? Expand production, of course. That's the situation Hyundai is reportedly facing, and the automaker says that if it's going to build another plant, it should be right here in the United States.

Hyundai currently builds the Sonata and Elantra at its solitary American plant in Montgomery, Alabama. (The Santa Fe, meanwhile, is built at the Kia subsidiary facility in West Point, Georgia.) And with demand for its compelling lineup rapidly increasing in the United States – up nearly 25 percent in 2010 versus 2009 – the Korean automaker is seriously considering expanding its production capacity with another plant to meet growing demand.

Executives will reportedly evaluate the possibility next year after they observe whether the upward trend in demand will continue enough to warrant such an expansion.

[Source: Automotive News – sub. req.]


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  • 23 Comments
      • 3 Years Ago
      I just hope they are prudent and don't try to grow too quickly. They have a good thing going right now without the added debt. History is rife with car companies that tried to grow too quickly without looking far enough down the "road." They really have to be careful with build quality. Their reputation is getting much better, deservedly so, but if quality slips, I'd bet that people would go right back to thinking of them as the '80s Excel builder...
        • 3 Years Ago
        I agree, Hyundai should STOP build their plants at foreign.
      • 3 Years Ago
      If they do, I guess it will be in a Southern State.
        • 3 Years Ago
        The farther away from the UAW, the better.
      • 3 Years Ago
      Dear Hyundai,

      We have a lot of excess capacity. Want to buy one of our plants? Please?

      Your's truly,

      Toyota.
        • 3 Years Ago
        Subaru has excess? I'm thinking it's more like they'd love to kick Toyota out of Lafayette tomorrow if they could and if Camry sales keep on their current trajectory, Louisville won't really have a problem meeting the demand soon enough anyway.
        • 3 Years Ago
        Yes sir, all that excess capacity is why Toyota is tooling up Blue Springs to make those Corrollas they can't supply enough of. Since they moved the Tacoma to Texas, that plant doesn't have much capacity left either. Plus, at some point in the next few years Toyota will need to add capacity for Prius family production. The Subaru plant is another issue. They already are straining to supply enough cars to dealers.

        Hyundai may have room to expand adjacent to one of the existing plants. If not there are some sites in Mississippi and western Tennessee that could support that size facility and not be too far from Hyundai's established supplier base. I doubt they would want anything to do with any of the former UAW facilities, even though there are plenty of those relics around.
        • 3 Years Ago
        Blue Springs is coming online to replace Fremont. It's not like Corolla sales are spiking. In fact, they're falling.
        • 3 Years Ago
        @1guyin10

        I can't for the life of me figure out how or why. The Corolla is over-rated, under-powered and under-featured for the stupid price tag you pay for it.

        What a useless, uncompetitive car.
      • 3 Years Ago
      I have to agree with DCM. War with neighboring North Korea with definately disrupt or halt production from Hyundai and Kia, or worse.....destroy the headquarters or factories, or even some parts manufacturers. Both companies...... Hyundai North America and Kia North America need to take a long look and prepare to transfer operations here in the States if that moment arrives.

      Tourian says "Alabama alone has Honda, Hyundai, Mercedes-Benz building vehicle and Toyota building engines. Mississippi has Nissan, Georgia has KIA. South Carolina has BMW and Tennessee has VW and Nissan. Maybe I missed a couple. Its here now."

      They should consider North Texas as a potential area for another factory. No Unions, low taxes, and as far away from Unions as you can get. Housing is inexpensive compared to the rest of the country. There is plenty of land and plenty of skilled laborers between Mckinney, TX up to the Oklahoma border. Plenty of engineers in the Dallas area.

      The only plant in the Dallas area in the old GM plant in Arlington near Fort Worth and wherever the Tacoma is made for Toyota.





      • 3 Years Ago
      how about ... build a plant in canada please !
      • 3 Years Ago
      Hyundai once failed at canada plant.
      They already pull out canada plant.

      *****************
      "In 1989, Hyundai Auto Canada Inc. opened a stamping and assembly plant in Bromont, employing 800. The 150,000 m2 plant was situated on an 850,000 m2 site, with body, paint and trim shops as well as a pumping station for the plant, a paint residue treatment plant, and administrative offices. The plant cost $387.7 million, with Quebec and Canadian federal government subsidies of $131 million.

      The plant was designed to manufacture approximately 2000 Hyundai Sonata's per week. Subsequently, Chrysler and Hyundai considered a joint venture that would have Chrysler rebranding the Sonata manufactured at Bromont — only to later announce the deal had failed. The Bromont plant was operational for four years before it closed in 1994 — with Hyundai's sales unable to support the plant. Hyundai subsequently sold the plant to Olymbec Inc., which in turn subdivided the plant leasing the former paint and assembly plant to Goodyear at beginning in February 2007 and later the former metal stamping portion of the plant to AAER Inc., a manufacturer of wind turbines based in Quebec."
        • 3 Years Ago
        That's Chrysler's loss. Think how much better off Chrysler would be now if the Sebring was a rebadged Sonata, instead of a rebadged turd!
      • 3 Years Ago
      Hyundai has earned the market share growth by being industry leaders in Cost Control
      and now inspired product.
      • 3 Years Ago
      Notwithstanding sales of the Sonata, both Hyundai and Kia could probably use another NA manufacturing plant to produce the Optima, as well as the Tuscon and Sportage, over here as well.

      Plus, in another couple of years when the new Santa Fe debuts, demand for that model will go up as well.
      • 3 Years Ago
      Haha, you have, like, the most red I've ever seen in you up vote/down vote bar.
      • 3 Years Ago
      "Hyundai's rise appears to be unstoppable, but there is one glaring matter which could upset the apple cart: war with North Korea. "

      Besides the human toll, a deep financial slam could be forthcoming if North Korea attacks South Korean factories. Much of South Korea's manufacturing base lies within striking distance of the north, including plants owned by Hyundai. Any disruption of production could hurt the Korean automaker, perhaps jeopardizing its very existence if North Korean troops manage to overrun and destroy South Korea's infrastructure." Matthew Keegan
      • 3 Years Ago
      I guess pretty soon the Deep South will become a major auto industry area.
        • 3 Years Ago
        If hyundai really want build new north america plant, they should go to Mexico. Not U.S.
        Because UAW watching them.
        • 3 Years Ago
        Not to mention all the manufacturing in Texas that's been there since long before many came south. I would think that one could easily make the argument that Detroit is rapidly becoming (or already is) merely a figurehead of the auto industry in America anymore.
        • 3 Years Ago
        Pretty soon? Alabama alone has Honda, Hyundai, Mercedes-Benz building vehicle and Toyota building engines. Mississippi has Nissan, Georgia has KIA. South Carolina has BMW and Tennessee has VW and Nissan. Maybe I missed a couple. Its here now.
        • 3 Years Ago
        ... and some people still spit on those cars for being "foreign", while driving Mexican-made Fords.
        • 3 Years Ago
        And don't forget the huge GM Doraville Plant in Georgia, and the huge Ford Plant in Georgia.

        Oh wait, they closed those. Ford moved production to Mexico.
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