New reports suggest Hyundai plans to invest $173 million in its Hyundai Motor Manufacturing Alabama plant to expand engine production capacity. According to Automotive News, the move will create 214 new jobs and increase engine capacity by 300,000 units annually.
The Montgomery, Alabama factory will add production of the “Nu” 1.8-liter four-cylinder engine, which is used in the 2011 Hyundai Elantra. It will also provide increased capacity for assembly of the “Theta” 2.4-liter four-cylinder engine used in the Hyundai Santa Fe, Hyundai Sonata, Kia Optima, and Kia Sorento. The expansion should be completed by fall 2011 and Nu-series engine production should begin by March 2012
HMMA currently builds the Elantra and Sonata, as well as the “Theta” series of engines. The Hyundai Santa Fe, Kia Sorento, and Kia Optima are built at the Kia Motor Manufacturing Georgia plant in West Point, Georgia.
The move will help Hyundai keep up with demand for its fuel-efficient vehicles. According to AN, Hyundai may consider opening a new plant somewhere in the southern U.S. to provide even more capacity. Possible locations include sites in Alabama, Mississippi, and South Carolina.
Source: Automotive News