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Hyundai Opens First U.S. Plant in Montgomery, Alabama

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Khatir Soltani

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What's going on in the auto industry these days anyway? GM is building cars in Korea and badging them as Chevys while Korea's

GM is building cars in Korea and badging them as Chevys while Korea's Hyundai Motor Co. is starting to build its Sonata (shown) and Santa Fe in the U.S. (Photo: Trevor Hofmann, Canadian Auto Press)
Hyundai Motor Co. is starting to build cars in the U.S.

Hyundai's second plant in North America, after a failed attempt in 1993, when the company had to shut down its Canadian assembly facility after U.S. sales nosedived due to quality issues, should fair much better.

After all, Hyundai is now considered one of the most reliable new vehicle manufacturers sold into the North American market, according to Consumer Reports and J.D. Power and Associates, two of the most respected third party analytical firms in the auto industry.

That newfound reputation for quality and longtime name for value has resulted in month over month sales records, making the

Hyundai's newfound reputation for quality and longtime name for value has resulted in month over month sales records. (Photo: Trevor Hofmann, Canadian Auto Press)
addition of a new production facility critical for continuing growth, by protecting earnings from exchange rate fluctuations while allowing the automaker to bypass importation quotas and increase market share.

Hyundai's first U.S. plant, a $1.1 billion USD investment, recently opened in Montgomery, Alabama. Capable of producing up to 300,000 midsize Sonata sedans and Santa Fe sport utilities per year, the new facility will go a long way to strengthen Hyundai's ties to one of its strongest markets, and in so doing expand its footprint as a global automaker.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada