Hyundai is investing $450 million in its Montgomery manufacturing plant to prepare for new vehicles and expand its ability to build engines for hybrid and extended-range electric vehicles.
Hyundai Motor Manufacturing Alabama announced the investments Oct. 28, with production of the all-new Hyundai Tucson scheduled to begin before the end of 2026. The plant is also preparing to build a refreshed Hyundai Santa Fe.
The investment will pay for new equipment, production tools and plant improvements. It will also expand the types of engines workers can build, including those designed for hybrid and extended-range electric vehicles.
“Today marks another significant milestone in Hyundai’s commitment to Alabama and to the future of manufacturing in the United States,” said Mark Rader, president and CEO of Hyundai Motor Manufacturing Alabama. “These investments strengthen our manufacturing capabilities, support future vehicle production, and ensure HMMA remains a cornerstone of Hyundai’s North American manufacturing operations for years to come.”
Hyundai said the changes will give the Montgomery facility more flexibility to adjust production as customers’ vehicle preferences change.
Gov. Kay Ivey joined Hyundai leaders, Alabama Commerce Secretary Ellen McNair, South Korean Ambassador Kyung-wha Kang and other state and community representatives for the announcement at the plant.
The Montgomery operation employs 4,200 people and produces the Santa Fe, Santa Fe Hybrid, Tucson and Santa Cruz. Hyundai said the latest projects bring its investment in HMMA to nearly $2.2 billion since production began in 2005.
“Since its founding in Montgomery 24 years ago, Hyundai Motor Manufacturing of Alabama has become synonymous with cutting-edge design and endless innovation in performance,” Gov. Ivey said. “Hyundai and Alabama are a winning team, and this substantial investment to enhance Hyundai’s well-known automotive line will propel our successful partnership to even greater heights. The future of Hyundai in Alabama is brighter than ever.”
Hyundai Motor Company President and CEO José Muñoz first announced the investments in late September. They are part of Hyundai Motor Group’s $26 billion commitment to U.S. investments from 2025 through 2028.
Kang said the additional investment builds on the partnership between South Korea and the United States.
“Hyundai Motor’s investment in the United States, HMMA in particular, is an outstanding example of the ROK-U.S. alliance in action—a partnership in which our two countries pursue shared prosperity for our people,” said Kyung-wha Kang, Ambassador of the Republic of Korea to the United States. “Hyundai Motor’s additional investment announced today reaffirms this strong partnership and further deepens the integration of our two countries’ automotive industries.”
“Alabama continues to be a vital part of Hyundai’s success story,” said Rader. “The dedication and skill of our Team Members, along with the strong support of our state and local partners, have helped make HMMA one of the most productive automotive manufacturing facilities in North America.”
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
