Hyundai to shift Santa Fe production to Georgia
Hyundai to shift US production of new Santa Fe to build more units of popular 2011 Sonata mid-size sedan.
Hyundai’s all new 2011 Sonata sedan is smashing record sales in its category. Since it came out the market in February this year, it has been selling so many units that production is having a difficult time to keep up.
In March and April alone, more than 18,000 units were moved in. Hyundai is yet to release the Sonata’s new turbo and hybrid models later this year and so they are preparing to produce more of this bestselling sedan.
The US-built Hyundai vehicles – Sonata and Santa Fe SUV – are doing perfectly well in the US market that this Korean-based auto manufacturer cannot accommodate production of both models in its Montgomery, Alabama factory, which is Hyundai’s one and only production plant in the US.
With the Montgomery plant already running 6 days a week on 10 hour shifts, Sonata production can barely keep up with the demand of the market, which is why Hyundai is contemplating to move the production of the Santa Fe elsewhere.
You gotta wonder where Hyundai would go to build the Santa Fe, which in itself, is doing quite as well in the market. Hyundai has no worries, though. Sister company, Kia Motors, has recently opened a new factory in West Point, Georgia specifically for the production of the Georgia-built Kia Sorento, and Hyundai is contemplating to move production of the Santa Fe there. This is a very wise move since, in the first place, the Santa Fe and Sorento share many components and US suppliers.
The challenge is that the West Point plant is also quite full as it is set to produce and sell over 100,000 Kia cars in 12 months. The new plant was designed with an annual capacity to produce 300,000 units, equaling that of the Montgomery factory.
With the current market pressure to produce so many Sonata units, it is most likely that Hyundai will decide to move the Santa Fe to West Point before fall this year when the new Sonata models will be introduced.
Until recently, Hyundai and Kia, although allies, produce their cars separately. It appears, however, that they soon would need to work together more closely to satisfy market demands.
May 11th, 2010 at 12:41 am
they are doing (Hyundai and Kia) same thing in Europe where the hundai Czech republic plant build some Kia’s and the Slovakia plant do some ix35 for Hyundai!
i think they need a third plan in north america for compact or sub-compct , so whatout when the K5/Optima/magnentis start prod in Usa, they will be another shortage in Kia Georgia plan!
May 11th, 2010 at 11:47 am
Great find ConceptVBS. Also thanks Admin for posting this article. Hyundai’s volume is ramping up and so is their market share, which is expected to be around 5.5 percent by the end of this year.
Quite impressive when you consider that they are currently sitting at a 4.4 percent slice. Both Honda and ‘yota are nervously looking over their shoulders, their sales growth remains flat if not unimpressive.
May 11th, 2010 at 1:53 pm
and a new engine from China for the Elantra the Nu engine!
May 11th, 2010 at 2:52 pm
Hyundai need the cooperation of Posco Steel in Mexico to gain access to their really high strength steel. The imagine the elantra and sante fe with over 600 + MPA tensile strength steel. Better than any other auto maker, which also use the Korea steel maker for their cars.
May 12th, 2010 at 5:37 pm
If Sonata 2011 and future K5 Magentis/optima 2011 continue/become big sellers in north america.
How can they produce Elantra in america with no room to produce them, dont forget Santa Fe and Sorento are U.S. build .
It take 4 or 5 years from announcement to start a new plant.
May 13th, 2010 at 1:32 am
Santa Fe and Sorento from Georgia, Sonata and Elantra from Alabama. Sounds like Optima/K5 will continue from South Korea Kia plants! Done deal!
May 13th, 2010 at 3:05 am
yop that the deal,
The kia plant was supposed to produce optima/K5 and Sorento!
but i doubt they can build Elantra on the same track as the Sonata… if and only if the Elantra migrate to the Sonata chassis… a possibility!
do someone have correct dimension of the future Lantra? and compare.
July 10th, 2010 at 5:35 pm
If the Santa Fe and the Genesis Coupe use the same 3.8 engine, and the Santa Fe plant is being moved, will that also affect the Genesis Coupe? I believe that the 3.8s are shipped to Korea to produce the Genesis Coupe.
July 10th, 2010 at 6:23 pm
I think the Sante Fe uses a different engine than the 3.8. I think it is a 3.5.