Hyundai investing $290 million for new Santa Fe, other upgrades

The Hyundai auto assembly plant in Montgomery announced Wednesday it is investing $290 million to upgrade production, with most of that in preparation for a new version of one of its most recognized vehicles.

Hyundai Motor Manufacturing Alabama President and CEO Ernie Kim announced the expansion at a press conference with Gov. Kay Ivey, Montgomery Mayor Steven Reed, and other officials.

HMMA said $190 million will be for tooling and equipment upgrades to prepare for a fifth-generation Santa Fe SUV. Another $100 million will be to support ongoing production of the Tucson SUV and the Santa Cruz, which the company calls a sport adventure vehicle.

HMMA has assembled the Santa Fe since 2006. The new version will be the first full model change since 2018.

“When Hyundai rolls out a new design off its world-class automobile assembly line, America takes notice,” Ivey said. “No doubt they are watching again today, as we lift the curtain to reveal yet another cutting edge creation of Hyundai engineering.”

HMMA Vice President Robert Burns said the new Santa Fe will be available at dealerships early next year and will have a larger cabin and a longer wheelbase to accommodate three-row seating, among other upgrades.

The new Santa Fe is the second new vehicle HMMA has rolled out this year. In February, the plant introduced its first electric vehicle, the Genesis Electrified GV70 SUV.

HMMA, Hyundai’s only assembly plant in the United States, began production in 2005. The plant makes a hybrid Santa Fe, the Tucson SUV, the Santa Cruz, the Genesis Electrified GV70 SUV, and a gas-powered GV70.

Burns said because of the additions to SUV production at HMMA, the Elantra sedan is no longer made at the Montgomery facility and is produced in Korea.

The Montgomery plant, with about 4,000 employees, makes engines for the vehicles it produces and for the Kia plant in West Point, Ga.

“Our relationship with the state, city, and county has only grown stronger over the past 20 years,” HMMA CEO Kim said. “And today’s announcement is another example of why Alabama is an automotive powerhouse in the southeast.”

Reed said the Hyundai expansion would have wide-ranging benefits.

“We’re grateful for this investment that you continue to make in our community,” Reed said. “And on behalf of our city, our city council and all of the employees of the city of Montgomery, we’re grateful that you call Montgomery home.”

“It’s not only a tremendous boon the city of Montgomery, it’s a tremendous boon to our entire region.”