SEOUL (Reuters) – South Korea’s Hyundai Motor Co (005380.KS) is contemplating constructing its Tucson and Kona sport utility automobiles and its pickup truck at its sole U.S. manufacturing facility to reverse a gross sales droop, Seoul Financial Day by day reported on Friday.
Hyundai goals to supply the Tucson and the pickup at its U.S. plant in Alabama in 2021, the report stated, citing nameless trade officers. The plant at the moment builds Sonata and Elantra sedans and Santa Fe SUVs.
Hyundai advised Reuters it had made no determination about the way forward for SUV manufacturing in america.
“We’re all the time contemplating the probabilities of all merchandise in particular person markets,” it stated in a press release.
To spice up SUV manufacturing, Hyundai would improve the manufacturing capability of the U.S. manufacturing facility to 450,000 automobiles a 12 months, from the present 380,000 automobiles, the report stated.
The corporate is grappling with slumping gross sales of its mainstay sedans such because the Sonata as low oil costs drive demand for petrol-guzzling SUVs and vehicles.
Hyundai posted the largest gross sales fall amongst U.S. carmakers in October, dropping 15 % in a market that slipped 1.2 %.
Hyundai Motor senior govt Michael J. O‘Brien beforehand advised Reuters it deliberate to launch a pickup truck in america, whereas folks acquainted with the matter stated the mannequin was anticipated to be produced in late 2020 and was more likely to be in-built Alabama.
O‘Brien additionally stated the “primary problem” was improve manufacturing, notably of the Tucson, which was “wanting provide.”
He additionally stated the smaller Kona SUV, which might be launched in america early subsequent 12 months, will come from South Korea, “at the least initially.”
Reporting by Hyunjoo Jin in SEOUL and Paul Lienert in DETROIT; Modifying by Stephen Coates
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