Hyundai Motor Company is planning to expand its manufacturing plant in Alabama by investing US$388 million until the first half of next year.
This investment is part of its plan, which was announced in January this year, to invest a total of US$3.1 billion in the United States for five years to come.
The main purpose of the investment is to produce the Smart Stream engines, which were unveiled last year after five years of development. To this end, Hyundai invests US$40 million in its engine head manufacturing plant in Alabama before the start of production scheduled for next year.
Specifically, the Smart Stream G1.6 engine and the Smart Stream G1.6 T-GDi engine produced there are planned to be mounted in the new Sonata and the new Avante, which are to make their debut next year. The Smart Stream G1.6 T-GDi engine is the world’s first continuously variable valve duration (CVVD) engine in which cylinder valve opening is freely controlled for simultaneous fuel economy and driving performance enhancement.
Alabama Governor Kay Ivey and Hyundai Motor Manufacturing Alabama LLC President and CEO Choi Dong-ryeol announced the new investment plan together on May 29. “Hyundai’s significant new investment is a strong testament to the company’s confidence in its Alabama operation and in its highly skilled workforce,” the governor said, adding, “Hyundai is an important member of Alabama’s dynamic auto industry, and this expansion at its Montgomery manufacturing facility will power the global automaker’s drive for future growth in the U.S.”