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Thanks to a strong 2010 followed by an incredibly strong start in 2011, Hyundaiis looking to boost its production capacity in order to keep up with strong demand for its largely refreshed U.S. lineup.
One key aspect of the necessary expansions in order to continue to meet demand will come in the form of an expanded and upgraded engine plant in Alabama, which the automaker says will yield 214 new jobs thanks to the $173 million investment. A Reuters report says that the plant will begin producing the Nu engine in March 2012, among others, with construction at the facility set to finish before the close of 2011.
The Nu engine will be replacing the Lambda engine, finding its way under the hood of the all-new Elantra compact car, which is also manufactured at the Alabama plant. The changes will also boost capacity for the Theta engine used in the Santa Fe and Kia Sorrento crossovers.
“The enhancements to the engine plant will not only increase our engine capacity by 300,000 units per year, it will also provide us the opportunity to implement new manufacturing technologies,” said Young Deuk Lim, president and CEO of Hyundai Motor Manufacturing Alabama LLC.
As it stands now, Hyundai’s Alabama plant is being pushed to its limits building the brand’s two best sellers, the Sonata and Elantra. Because of the current brisk sales pace, Hyundai operates the plant up to 20 hours per day, sometimes spilling into Saturday as well.
Hyundai is also considering adding an entirely new plant in the general region if sales continue to improve, but a final decision isn’t expected until at least July.