More Capacity: Hyundai Increasing U.S. Production Capabilities

Hyundai’s sales have been red-hot as of late, but the South Korean automaker’s sales might have actually been hindered by its U.S. production capacity. Hyundai is tackling the problem head-on by announcing plans to increase production capacity in the United States.

John Krafcik, CEO of Hyundai Motor America, addressed Hyundai’s U.S. production problem at the Management Briefing Seminar in Traverse City, Mich., yesterday.

“We know we have to grow U.S. production,” he said, but declined to give any details on how it will be done. Krafcik went on to say that Hyundai will announce its formal plans within the next month or so.

As of now, Hyundai’s sole U.S. plant, located in Montgomery, Ala., builds the 2011 Sonata sedan and 2010 Santa Fe crossover. The Sonata has proven to be extremely popular since its release and has been one of Hyundai’s top-selling models over the past few months. Hyundai sold over 17,000 Sonatas in July, causing the factory to run overtime but still fall short of meeting consumer demand for the car.

On August 1, Hyundai only had a 37-day supply of vehicles, down from 41 at the beginning of July. Both of Hyundai’s vehicle supply figures are well below the industry average of 60 days.

Source: Automotive News (Subscription required)


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2011 Hyundai Sonata

2011 Hyundai Sonata

MSRP $19,395 GLS (Manual) Sedan


22 City / 35 Hwy

Safety (NHTSA):


Horse Power:

198 @ 6300