Hyundai Working to Increase Crossover Production
Dealers Demanding More Crossovers from Car-Heavy Brand
The explosion of crossover sales over the last few years have been great for brands that anticipated the trend early and shifted manufacturing resources to position themselves to take advantage of the trend. However, for manufacturers that didn’t anticipate the tectonic market shift in the direction of crossovers, it’s a mad scramble to reconfigure their manufacturing base in an attempt to meet the demand. Hyundai has seen steady sales growth during its more than three decades in the U.S. market, with most of that being from its Elantra compact and Sonata midsize sedans. Hyundai currently offers the Tucson compact and Santa Fe midsize crossovers, with a model soon to be added to the newly created Genesis luxury brand. Hyundai’s U.S. dealers are reportedly pressuring the automaker to increase production and allocations of the crossover models, which are selling briskly, according to Automotive News.
Hyundai recently added the Santa Fe to its production lineup in Huntsville, Alabama, where the Sonata and Elantra are made. The Santa Fe was previously built at the Kia plant in West Point, Georgia, with long-wheelbase models imported from South Korea. West Point will continue to build the Santa Fe. For the U.S. market, the smaller Tucson is imported exclusively from South Korea at the moment. Last year, Hyundai announced its intention to build a factory in Mexico to better meet demand in the U.S. and Latin America markets.
Source: Automotive News