By on February 3, 2010

Canoe.ca reports that Hyundai are considering the option of a new production plant in Canada, provided the brand’s sales growth continues its upward momentum. “In Canada, if our volumes grow to the point we could support a plant we would consider it”. President and Chief Executive of Hyundai Canada, Steve Kelleher said. But, he warned, “for manufacturers there is a real urge to grow sales and put up plants to meet that growth, but if you do it too fast you lose the focus on what got you to where you are in the first place, and that’s quality.” Goodness, what could he possibly be referring to?

Mr Kelleher did give some tangibles, saying that if Hyundai’s market share were to grow to 10-15%, it would be enough to make a plant viable. Hyundai are not far off that goal; their market share rose to 7.5% from 6% a year ago. And it wasn’t just manufacturing Hyundai are bullish in. Hyundai are also adding more dealerships across Canada to facilitate the good growth they’ve experienced. “For Hyundai the sales growth is sustainable,” Kelleher said. Car makers in Canada had better figure out a gameplan, soon, because Hyundai aren’t waiting for anybody.

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19 Comments on “Hyundai Mulls New Canada Plant...”


  • avatar
    Contrarian

    What delicious irony. Hyundai tweaking Toyota on quality. The car world keeps changing.

  • avatar
    rockit

    Hyundai can now funnel even MORE cars into fleets now! Huzzah!!!

  • avatar
    Gardiner Westbound

    January Canadian Hyundai and Kia sales are up over 30-percent. The big surprise, however, is Audi. Up 128-percent!

    http://tinyurl.com/y9v99wm

  • avatar
    Deaks2

    Hyundai had a plant in Canada, just south of Montreal way back in the late-80’s/early-90’s. It built the Solar (remember those?) and first gen Sonata.

    Then they closed it a few years in and reneged on repaying the tax credits that they were advanced. It left a sour taste with Canadian governments for working with Hyundai…

    • 0 avatar
      mikey

      I do recall that Deaks2. But right now,if it means more jobs lets weloome them in.

      Attention Hyundai: The weather isn’t nearly as nice as what your used to in the deep south. We have a different accent eh!

      However IMHO the beer is a lot better.

    • 0 avatar

      +1 .. the short memory we have…

    • 0 avatar
      Contrarian

      Well, the high volume CDN beer is somewhat better then the high-volume US beer, but they drink more wine in Quebec anyway, n’est pas?

    • 0 avatar
      Lemmy-powered

      Mikey, I have worked closely with most of the automakers and I can tell you that Mr. Kelleher & Hyundai have come to know the Canadian auto business extremely well in the past decade. The key is that they learn from their mistakes and NEVER take success for granted.

      I don’t drive a Hyundai, but as a Canadian I sure as hell applaud any automaker that puts heated seats in its lower models. I don’t remember Chevy doing that.

    • 0 avatar
      mikey

      Oh yeah..I had a Grand Am GT with all the bells and whistles,and the coldest leather seats ever created. So my better half,who never gets involved in car stuff, ever,made it really clear. “If you have to have leather seats,they had better come equiped with heat.”

      So my Chevy does indeed have heated seats.

    • 0 avatar
      FromBrazil

      Oh really? They did that in Canada, too? Here the Federal and state govnments of Bahia extended credits to Asia Motors, which was subsequently taken over by Hyundai. Hyundai has refused to pay back said credits saying they’re were given to Asia and not them. Ummm.

      So they now make good cars, but are not really that honest then. Wonder what would happen if they had a Toyota-like fiasco on their hands…

      As an example, Daimler, when they bought Chrysler, closed a factory in Paraná state, which produced Dakota pick ups. At first Daimler alleged they had nothing to do w/ the previous deal, but the Paraná gov didn’t flinch or budge and Daimler coughed up the money. And they did the same in my home state, Minas Gerais, that extended credits to them for a plant. When the factory failed ’cause the car never reched the volumes envisioned (1st gen Class A), they threatened to close it. My state didn’t flinch either and levied fine upon penalty on them and has been paid back. THe factory by the way is still open and produces CLCs for export. Though Daimler has to pay a penalty every so often as they don’t employ the number of people the original agreement demanded as a condition.

  • avatar
    tparkit

    Sounds like Hyundai wised up. Only a pack of navel-gazing, PC fools would open facilities in the Banana Republic of Quebec. Ask WalMart.

  • avatar
    50merc

    Hyundai’s got it together. I’m looking at Mazda5 and Elantra Touring. The latter is just as well equipped and has a better warranty but the sticker is less, plus has a $1500 rebate. Even a 2010 Sonata, with $2500 rebate, can be bought cheaper than Mazda5. Mazda doesn’t even have a rebate on 5’s and only meager incentives for other models. I don’t understand why Mazda is sitting on its hands.

    Right on, Mikey. Modern industrialization, better stuff at lower cost, economic growth, jobs and prosperity. I love it.

  • avatar
    Emro

    Well, there are plenty of large, empty, industrial buildings here in southern Ontario… ring Dalton!

  • avatar
    tuckerdawg

    I drive an 06′ Elantra hatchback and I’m pretty satisfied with it. I was impressed with the dash fittings when I took it out to install a stereo. Not very exciting but that saves me on a lot of traffic tickets. If it was a manual I would be ok with that but automatic is so boring… I might pay a premium for mazda next time but overall hyundai is appealing well to the mass market.

  • avatar
    Detroit Todd

    I drive an 06′ Elantra hatchback

    I’m so sorry.

  • avatar
    TCragg

    Hey, Hyundai. Why not set up shop in St. Thomas? As of next year, we’ll have two empty assembly plants for you to choose from!

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