The new 2013 Hyundai Elantra Coupe with the already wildly popular Elantra sedan.
The good news: American motorists are clamoring for Hyundai products. The bad news: the Korean maker doesn’t have enough to go around, so it is adding a third shift to its Alabama assembly plant in a move that should squeeze out another 20,000 vehicles annually.
It will also add another 877 jobs at the Montgomery facility, one of two assembly lines Korean manufacturers operate in the United States. And Hyundai joins an array of other automakers, domestic and international, who have been adding thousands of jobs in recent months as the U.S. new car market continues a stronger than anticipated recovery.
Manufacturers are expected to report sales later today that, on an annualized basis would reach at least 14.5 million, more than 1.5 million more than in 2011 if that pace were to be sustained. Koreans Hyundai and Kia have been posting some of the biggest gains of any makers; Hyundai set an all-time record last month, but it has been running into serious capacity problems this year.
Hyundai's Alabama assembly plant will add a third shift in September creating 877 new jobs.
The Hyundai Motor Manufacturing Alabama, or HMMA, plant launched production of the then newly redesigned Sonata in December 2009. That model now accounts for a full one-third of total Hyundai sales in the United States.
The plant also took on production of the smaller Elantra in October 2010 following its redesign. That model accounts for another 31% of Hyundai’s U.S. sales – though that figure includes some Elantras imported from South Korea. About 14% of the Alabama plant’s production goes to the Canadian market.
Earlier this year, Hyundai Motor America CEO John Krafcik told TheDetroitBureau.com that barring the ability to expand capacity in Alabama – or get more imports from Korea – his company would likely be unable to maintain its sales momentum and would almost certainly suffer a decline in market share by not keeping up with the overall recovery of the U.S. market.
The Alabama plant produced 338,000 Sonatas and Elantras last year and was already operating two 10-hour shifts with frequent weekend overtime, so the switch to a full third shift won’t bring as much additional output as it might seem possible. And, it is unclear whether the 20,000 more units that will come from the factory, starting in September, will be enough to maintain Hyundai’s market share. But company officials are clearly glad to get whatever they can.
“The continued success of Hyundai’s Sonata and Elantra in North America is a direct reflection of the dedication to quality and craftsmanship” at the plants, said Young Deuk Lim, HMMA chief executive officer. “This commitment is the key reason Hyundai Motor Company chose to continue to invest in the people of Alabama and increase vehicle production in Montgomery.”
The question is whether Hyundai might now consider an additional U.S. plant. HMA CEO Krafcik told TheDetroitBureau.com that is an issue his company has been contemplating — but stressed that the overriding issue is “whether demand can be sustained.” The maker does not want to further expand its operation in Alabama or add another plant unless it clearly will be able to keep them busy into the foreseeable future, he explained.