By on March 12, 2015


Per inside sources, Hyundai is planning to increase SUV production in the United States in an effort to capture more consumers amid low fuel prices.

Reuters reports the automaker’s sales of the Elantra and Sonata have slowed as some consumers in the U.S. spend their money on SUVs and crossovers, prompting the company’s shift toward more SUVs. The expansion would come in the form of a new assembly line in Alabama, augmenting the line in Kia’s Georgia facility where the Santa Fe is assembled, and exports of the Tucson from Hyundai’s factories in South Korea.

Korea Investment & Securities auto analyst Suh Sung-moon adds that, aside from Hyundai’s need for a second U.S. plant, Santa Fe production could be moved to Alabama, with the Tucson and a truck — possibly in the vein of the Santa Cruz concept from the 2015 Detroit Auto Show — joining the former. Overall production is expected to be 300,000 units annually, with the first vehicles to leave the line in 2017.

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