Hyundai to Build 80% of US-Sold Vehicles in America by 2011
Hyundai Motor America will manufacture the majority of its US-market cars domestically, with the Sonata and other top sellers leading the shift.
Hyundai Motor America expects that by 2011, around 80% of the vehicles it sells in the United States will be built at its US manufacturing facilities. The company’s chief executive, John Krafcik, confirmed the target, citing a focus on domestic production for Hyundai’s best-selling models.
Krafcik said Hyundai would build its three best-selling cars in the US, contrasting the company’s strategy with rivals who continue to import popular models. Hyundai’s Alabama plant has already ramped up output of the Sonata sedan, producing 24,111 units in July 2010, an 80% increase on the previous July. The plant is also preparing for increased production of the Santa Fe, with assembly of that model shifting from South Korea to the US as part of the localisation drive.
US Manufacturing Ramps Up for Key Models
The Montgomery, Alabama facility is central to the plan. In July 2010, the plant produced more than 24,000 Sonatas, reflecting strong demand for the saloon in the American market. At the same time, the plant built just one Santa Fe as Hyundai phased out Korean production for the US and prepared to transfer the crossover’s assembly to its US operations. The Santa Fe will join the Sonata and Elantra as the core of Hyundai’s American-built line-up.
The shift is designed to reduce costs, bypass currency fluctuations, and respond more quickly to American consumer preferences. Local production also helps Hyundai avoid potential trade barriers and import tariffs, a growing concern for global manufacturers selling into the US market.
Impact on Hyundai’s Position in the US Market
Building cars in the US gives Hyundai a marketing advantage against competitors who continue to import large numbers of vehicles. Krafcik specifically contrasted Hyundai’s approach with Ford, which builds its best-selling car for the US in Mexico. For American car buyers, locally built models can mean shorter delivery times and a perception of greater commitment to the US market.
The increased production at Hyundai’s US plants also supports local jobs and supply chains, particularly in Alabama and Georgia. As the Santa Fe’s production moves to the new Georgia facility, Hyundai’s American manufacturing footprint is set to expand further.
Hyundai’s US-Built Models for 2011
- Sonata (saloon)
- Elantra (compact)
- Santa Fe (crossover SUV)
Hyundai’s target to build 80% of its US-market vehicles domestically by 2011 marks a major shift for the brand, which only a few years earlier relied heavily on imports from South Korea. With the Sonata, Elantra and Santa Fe leading the way, Hyundai is positioning itself as a major local manufacturer in the US market.
