Hyundai to Add SUV Production in Alabama

Hyundai Motor Co. says it will begin building the compact Santa Fe Sport SUV this summer at its auto plant in Montgomery, Ala., to help meet strong U.S. demand for the model.

The five-passenger model currently is assembled in America by affiliate Kia Motors Corp. at a factory in Georgia. That facility also builds Kia’s Sorento SUV and Optima sedan.

In Alabama, the Sport will join the Sonata and Elantra sedans currently produced there. Hyundai will continue to supply its larger seven-passenger Santa Fe SUV from South Korea.

A source tells Reuters the Alabama factory is targeting output of 30,000 Sports in June-December. The plant’s overall annual capacity of 400,000 vehicles won’t change. An analyst says the facility will likely reduce output of slow-selling Sonata sedans to make room for the Sport.