2nd Factory in US
Hyundai Motor will start construction of a second plant in the U.S. in order to mass produce sport utility vehicles (SUVs), which have a high level of preference among American consumers. The factory will have an annual production capacity of 300,000 units.
According to sources in the auto industry on March 11, Hyundai Motor internally confirmed a plan to establish the second plant with an annual production capacity of 300,000 units nearby Hyundai Motor Manufacturing Alabama in the southeastern part of the U.S. within this year, and start mass producing from 2017.
The reason why Hyundai Motor pushes ahead with the construction of the second plant in the U.S. is that the U.S. auto market is rebounding. In particular, demand in the SUV market is rapidly rising.
The sales of SUVs in the U.S. market during January to February of this year stood at 885,000 units, a 14.5 percent increase from the previous year. Most vehicle classes showed a remarkable increasing trend. Not only did mid-sized SUVs increase 19.5 percent, but also full-sized SUVs increased 18.7 percent, and high-class SUVs 17.2 percent. Under the circumstances, as many as 16,511 units of Hyundai Motor’s Santa Fe SUVs were sold, a 20 percent increase, during the same period.
Hyundai Motor’s first plant in Alabama and Kia Motors’ plant in Georgia have already increased the annual production capacities to 360,000 units each through three shifts. This is why Hyundai Motor decided to build the second plant.
Regarding this, an official from Hyundai Motor said, “Factory construction overseas is something we review on a regular basis, taking a look at the changes in the global demands. There is nothing decided yet.”