Hyundai Considers Building Another US Factory
luvsmiling, March 12, 2015, 10:36 a.m.
Hyundai Motor plans to build a second U.S. factory with an annual production capacity of 300,000 vehicles, it emerged on Wednesday. The plan comes as the recovering U.S. economy is boosting demand for new vehicles. Hyundai does not want to lose market share due to failure to keep up with the demand.
"We are looking for a suitable site and closely examining business conditions," a Hyundai executive said. The company is looking into a site in Alabama, where its U.S. factory is now located, as well as a few others.
The second U.S. factory is likely to produce SUVs as the leisure vehicle is in great demand. Some 885,000 SUVs were sold in the U.S. in the first two months of the year, a 15 percent increase on-year. Hyundai is only producing the Avante and Sonata sedans at its factory in Alabama, while its SUVs are manufactured at affiliate Kia’s factory in Georgia or exported from Korea. With the new factory, Hyundai’s global production capacity will reach 9.2 million vehicles in 2018.