Thursday, July 18, 2024
NewsHyundai Invests US $290 Million to Expand its Alabama Plant

Hyundai Invests US $290 Million to Expand its Alabama Plant

Hyundai will invest US $290 million in its Alabama plant to produce the new Santa Fe and support production of other models.

  • $190 Million will go to Prepare for the new 2024 Santa Fe.

  • $100 Million will support continued production of the Tucson and Santa Cruz.

  • The Genesis Electrified GV70 is the first fully-electric model built there.

Hyundai Motor America announced a major expansion to its Alabama factory earlier today, mostly in order to prepare it for the launch of the all-new 2024 Santa Fe.

This manufacturing plant will receive US $290 Million in total, with $190 million being earmarked for the tooling, employee training, and physical expansion required to produce the fifth generation of the Santa Fe.

Another $100 million will be used to support the continued production of the Tucson compact SUV and Santa Cruz pickup. This means that production rates for these models are likely to be increased in response to strong customer demand.

Other models built at the same facility include the Elantra sedan as well as the Genesis GV70 and Electrified GV70, the first fully electric model to be built at the Montgomery plant since its opening in 2005.

Hyundai Motor Manufacturing Alabama | Photo: Hyundai

As evidenced by the division of the new investment sum, the Santa Fe is a very important product for the plant which has built every generation except the first one, starting in 2006.

The factory which employs about 4,000 workers is one of the largest job creation centers in Alabama and it has already received 16 expansions since its opening, totalling US $3.377 billion.

In addition to this facility, the automaker is working on a new manufacturing plant to be located in Georgia which will become its first factory dedicated solely to the assembly of electric vehicles.

Curiously given the automaker’s very close relationship, Hyundai and Kia don’t share many assembly plants, which explains why the former’s Alabama plant doesn’t manufacture Kia vehicles and the latter’s West Point, Georgia facility is not part of Hyundai’s plan to increase its manufacturing presence in the United States.

Hyundai Motor Manufacturing Alabama | Photo: Hyundai

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