Hyperdrive

Hyundai’s Controversial Alabama Plant Is Now Driving Its US Growth

The South Korean automaker’s rapid pivot to EVs involves a shift in its US manufacturing base.

A Hyundai Sante Fe SUV on the assembly line at the Montgomery, Alabama, factory.

Source: Hyundai Motor Manufacturing Alabama LLC

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Hyundai’s most productive car plant sits on a former cotton plantation on the southern edge of Montgomery, Alabama, where it pumps out Tucson crossovers, Santa Fe SUVs and other models on three shifts, 24 hours a day, sometimes seven days a week.

The factory and its popular models have propelled the South Korea automaker and its affiliate Kia into the No. 4 spot in US sales for the first time in 2023, surpassing Jeep and Ram owner Stellantis NV. Its high levels of output, close-knit supply chain and low labor costs have buoyed Hyundai Motor Co.’s profit margins, which are among the best in the global auto industry.