Hyundai will have to produce more in the US

Posted on Wednesday, 12 September 2012 , 13:09:45 byEmil

Filed under hyundaikoreanussaleselantrasuvHyundaiAsianAmerican

Hyundai will have to produce more in the US


It is true, all dealers the same worries: not being able to sell the cars they have on the parking lot or not being capable of producing enough if demand is too big. Hyundai is one of the carmakers that will have to produce more for the North American market. According to CEO John Krafcik the company has a very tight inventory and this is why they have problems keeping up with demand. The US production will increase with 19% starting this month and until the end of the year. The carmaker had to add a third shift at the Alabama plant. Apparently this will be enough to produce approximately 20.000 Elantra and Sonata models. Hyundai also has to increase production of the new Santa Fe sport. They will have to manufacture extra 36.000 units between August and the end of the year at the Georgia plant. The company started having these problems because of the recent strikes at the South Korean plants. They experienced a shortage of 5.000 to 10.000 US-bound vehicles, but with the help of the Elantra and Sonata, the carmaker will manage to end the year well. The models manufactured in South Korea for the North American market are the Accent sub-compact, the Veloster coupe, the Tucson crossover and the Genesis sedan. The work contract will look a bit different starting March next year. Three hours per worker will be lost, but the company decided to increase their wages. This way exports are less competitive. To make it clear, here is an example. The Ulsan plant has an annual output of 1.5 million units. The extra hours introduced would decrease production by 234.000 vehicles per year. Hyundai will have to make a considerable investment of $264.6 million to improve productivity in the Korean factories and for example, reduce the training session.