Hyundai considering U.S. production shift to keep up with demand

Thanks to strong demand for some of Hyundai's U.S.-built products, the Korean automaker is contemplating a stronger integration between the company's Montgomery, Alabama and West Point, Georgia factories.

Hyundai's lone U.S. plant - located in Montgomery, Alabama - is currently running at full capacity, struggling to keep up with U.S. demand for the Sonata sedan and Santa Fe SUV. The plant already runs six days a week on 10 hour shifts, leaving Hyundai little choice but to look to another plant to increase production.

Luckily for Hyundai, Kia - Hyundai's affiliate - recently opened a new plant in West Point, Georgia. Although the West Point facility is having some capacity issues of its own - the Georgia-built Sorento is currently on pace to sell over 100,000 units in a 12 month period - Hyundai is strongly considering moving some Santa Fe production to the plant.

As the Santa Fe and Sorento share a number of components and U.S. suppliers, the transition could prove to be rather smooth. It remains to be seen, however, if the shift would allow Hyundai to fully keep up with demand. Both plants were designed with a 300,000 unit annual capacity.

Until recently Hyundai and Kia ran their plants as completely separate entities, but it appears those walls could be coming down in the name of profitability and efficiency.

References
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