Hyundai Santa Fe production returning to Montgomery - joins Sonata and Elantra on assembly line
MONTGOMERY CO., AL (WSFA)
It's been more than than five years since the Santa Fe SUV was built at Montgomery's Hyundai plant, but that will soon change.
Hyundai officials announced Thursday afternoon that production of the vehicle is moving back to Alabama's capital city.
The company stopped making the Santa Fe in Montgomery in August 2010, choosing instead to move it to the West Point, GA KIA plant so the Montgomery plant could focus on continued production of the popular Sonata sedan and the addition of the newly redesigned Elantra sedan.
Hyundai Motor Manufacturing Alabama, capable of churning out 400,000 units per year, will begin production of the Santa Fe Sport in the summer, along side the other two model lines.
“We’re thrilled to bring back another pillar of the Hyundai lineup to our production mix here at HMMA,” said Chris Susock, vice president of production, HMMA. “We’ve been extremely proud to build both Sonata and Elantra on our assembly line for Hyundai in the U.S. and we will continue our tradition of quality and productivity with the addition of the Santa Fe Sport in 2016.”
Supply and demand, the driving force behind the decision aided by the Montgomery plant's flexibility.
“With the fuel economy and the fuel prices going down and lowering, of course the demand for SUV's has really spiked so for Hyundai to be successful in the market it’s important that we're able to supplement that demand,” said Susock.
The plant was designed to be able to uptake at least five different models, adjusting the assembly line to meet market demand. Officials say the Santa Fe was being built at Kia of Georgia but their volume capacity is limited, something HMMA and its employees will be able to utilize.
“It's important for us as a plant is that we utilize the capacity at 100% or better out of our facility, gives our team members the job security, keeps them working, should do well for us in the future,” said Susock.
The relocation of a pillar in the Hyundai lineup is also strengthening this pillar in the community.
“Seeing what it means to the community over $4.8 billion annually of impact to this state from Hyundai and the suppliers it is such a blessing and we're just so honored to be the home of Hyundai in North America,” said Ellen McNair, Senior Vice President, Montgomery Chamber of Commerce. “It gives them an opportunity to continue have their vehicles moving up the food chain as far as a percentage of the market and growth and things like that so this is really good news for Hyundai and this is really good news for Montgomery,” said Montgomery Mayor Todd Strange.
Company leaders say the plant will begin retooling and reprogramming of robots and other logistical projects in the coming months to prepare for the additional production line. 2016 production targets for the Sonata, Elantra and Santa Fe Sport have not yet been determined.
“We’re very happy Hyundai has been able to make this change, which will result in more great Santa Fe crossovers available to our dealers and customers,” said Dave Zuchowski, president and ‘CEO of Hyundai Motor America. "The new production will help us meet the growing demand for one of our most popular products."
The Montgomery plant started production of the Santa Fe in 2006 and produced 416,854 vehicles before its production moved to Georgia.
In December, Hyundai Motor America announced its best year ever with sales up five percent compared to 2014's numbers.
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