Hyundai's plant in Montgomery, AL
Hyundai is in an enviable position among automakers: sales of its vehicles are so good that Hyundai’s considering the possibility of building a second manufacturing plant on U.S. soil to boost capacity. Hyundai’s existing plant, in Montgomery, AL, has already farmed out production of the Santa Fe SUV to Kia, who builds in in their West Point, GA, manufacturing plant. That’s freed up Montgomery to focus on building the Sonata, but Hyundai also has serious expectations for sales of the redesigned Elantra. If sales continue to grow, even running three shifts per day in Montgomery may not be enough to satisfy customer demand for product. While lack of capacity isn’t a limiting factor today, clearly the writing is on the wall.
Hyundai’s U.S. sales grew nearly 25% in 2010, fueled by a freshened mix of product and a growing base of loyal supporters. It’s entirely likely that their sales will grow in 2011 as well, with the only real question being, “by how much?” That said, funding construction of a new manufacturing plant is a major risk, unless you’re absolutely certain that you can sustain the momentum of sales growth that you’re currently experiencing. Hyundai executives aren’t going to rush into any decisions, and will take the remainder of this year to compile the information necessary to make a go / no go decision on a new plant. A formal decision isn’t expected until some time in 2012, but I suspect that Hyundai can move very quickly is the right answer is “build”. If sales continue to grow at 25% annually, the company won’t have much of a choice but to expand manufacturing in the U.S., but that’s a good problem to have.
Source: Autoblog
Kurt Ernst has been passionate about automobiles and driving nearly his entire life. His early years were shaped working in the family service station, though his real passion was auto racing. After graduating from the University of Colorado, Kurt spent a year club racing with the Sports Car Club of America, before focusing on a business career in marketing and project management. Later, his passion for writing and the automotive hobby found him freelancing for a variety of automotive news sites, including Automotive Addicts and Motor Authority, where his work was syndicated and appeared in several national publications. Recognized as an expert in the automotive field, Kurt joined Hemmings Motor News as an Associate Editor in 2013, and in the years since has progressed to Editor, Hemmings Daily; Managing Editor for Hemmings Motor News, Hemmings Classic Car, Hemmings Muscle Machines, and the Hemmings Daily; and now, Managing Editor, Hemmings Auctions. Kurt was instrumental in organizing the Hemmings Motor News Concours d’Elegance from 2013-2019, and has served as a judge at this event and The Vintage Racing Stable Concours d’Elegance. A Skip Barber Racing School graduate and prolific writer, Ernst is also skilled in copyediting, project management, brand development, and public relations.
