By on October 11, 2016

2017 Genesis G90 Front (Release)

The newest premium automaker on the block could cozy up to its downmarket parent company in Alabama.

Fledgling Korean luxury brand Genesis is expected to bring production of two models to the U.S. in three years, WardsAuto reports, likely setting up shop at Hyundai’s existing Montgomery plant.

Right now, there’s only two models in the Genesis stable — the G80 (formerly the Hyundai Genesis) and full-size 2017 G90, which saw its first U.S. sales in September. A compact G70 bows next, aimed at the BMW 3 Series and its rivals. When fully fleshed out in 2021, the Genesis lineup will boast six vehicles, including two utility models and a luxury coupe.

Citing its partner, AutoForecast Solutions, WardsAuto claims the next-generation midsize Genesis G80 starts stateside production in September 2019. A D-segment crossover utility vehicle follows in November 2019.

Existing Genesis models call Ulsan, South Korea home.

The obvious choice of location is Hyundai’s 2-million-square-foot Montgomery, Alabama assembly plant. The automaker could either expand the facility to accommodate production of the new vehicles, or build a standalone facility on its property. If the new brand’s retail and sales model is any indication, Genesis executives will push for the standalone building. (This premium player likes keeping distance between itself and its parent.)

Hyundai officials talked about expanding the plant’s capacity last year, but that never came to pass. While the official explanation had to do with weak overseas sales — China specifically — the Genesis spin-off announcement came soon after.

[Image: Hyundai Motor America]

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38 Comments on “Genesis Production Bound for Alabama: Report...”


  • avatar
    threeer

    Good news for my (current) home state. Roll Tide (or War Damn Eagle, depending on your preference).

  • avatar
    Kyree S. Williams

    That makes sense. Mercedes-Benz currently builds its SUVs (GLC, GLE / GLE-Coupe, GLS) in Alabama, for worldwide consumption. BMW also has a plant in nearby South Carolina for the X3, X4, X5, X6, and Z4. Hell, Hyundai itself already has a plant in Alabama, which makes the Sonata and Elantra.

  • avatar
    SCE to AUX

    Let’s see if Alabama coughs up money as readily as Ontario.

  • avatar
    PrincipalDan

    Oh the delicious irony in being more likely to be able to buy a furrin’ brand automobile assembled by Americans than an “American” car assembled by Americans.

    • 0 avatar
      JohnTaurus_3.0_AX4N

      Lincolns and Cadillac build in the US, and Ford, FCA and GM still build many cars here. I find it deceptive to minimize there presence.

      Taurus (until mid-2017, no replacement)
      Fusion (shared with Mexico)
      MKZ (shared with Mexico)
      Continental
      Mustang
      MKC
      F-Series including half ton and Super Duty as well as added recently, Medium duty
      Transit
      Escape
      E-Series (what’s left)
      Explorer
      Expedition
      Navigator
      Focus (Ranger)
      C-Max (Bronco)

      Silverado half and HD (now sorta shared with Canada)
      Sierra half ton and HD
      Cruze
      Colorado
      Canyon
      Equinox
      Tahoe
      Traverse
      Escalade inc. ESV
      Yukon inc. XL
      Suburban
      Acadia
      Camaro
      Corvette
      ATS
      Express
      Savana
      LaCrosse
      Malibu

      Compass (Patriot)
      Ram pickup
      Cherokee
      Grand Cherokee
      Wrangler
      200 (soon departed, unknown replacement)
      Dart (soon departed, unknown replacement)

      That’s all I can think of right off hand. A healthy portion of the big 3 line-up is made in the US, with most that aren’t are built in Canada. Most engine and trans components are shared between the two as well.

      Yes, some are built in Mexico now or will be eventually, but Toyota, Honda, VW (several Germans, can’t remember if its BMW, M-B or both) and Mazda all build in Mexico. Many of them and more build in the US (Mazda no longer does that I’m aware).
      GM is the second automaker after Volvo to import a Chinese made model, but the point is, its a global industry, one in which the US and their big 3 within it play a large part.

      • 0 avatar
        JimZ

        “Fusion (shared with Mexico)
        MKZ (shared with Mexico)”

        Fusion is out of Flat Rock to make room for Continental. MKZ has never been built anywhere but Hermosillo.

        • 0 avatar
          JohnTaurus_3.0_AX4N

          I hesitated to put MKZ because I wasn’t sure. I knew they got inspected there at launch I believe.

          I wonder what will replace Taurus and MKS in Chicago. The Mexican plant hasn’t been able to meet Fusion demand in the past. They probably won’t just build Explorer there.

          • 0 avatar
            gtemnykh

            Also worth mentioning that all Silverado/GMC crew cabs are henco en Mexico, likewise Ram has a lot of production South of the border. Seeing as these are some of the top selling vehicles in the US, it’s a mistake to omit the fact.

          • 0 avatar
            JimZ

            sedan sales are declining across the board; it’s likely they didn’t need the added capacity of Flat Rock for Fusion anymore.

            I think Taurus is going to go on for a while, now that it’s taken on the “cop car” role.

          • 0 avatar
            Lorenzo

            I haven’t seen a Taurus “cop car”. I’ve seen plenty of Explorer black and whites, though.

          • 0 avatar
            Drzhivago138

            I see about a dozen Interceptor Utilitys for every one Interceptor. Or maybe I’m just seeing the same ones over and over.

  • avatar
    Asdf

    Meanwhile, GM is importing cars from China…

    • 0 avatar
      threeer

      Would rather a Hyundai from Alabama than a Buick from China (and a hamburger today for payment on Tuesday).

      • 0 avatar
        Corollaman

        Or a Camry from Ky than a Journey from Mexico

        • 0 avatar
          PrincipalDan

          Growing up in Ohio I remember when Honda started to build Accords there. A friend of my father’s purchased one and this was when you were still likely to get crap for buying Foreign cars in the UAW strong Midwest.

          Whenever someone threw shade at him for buying Japanese the guy would open up the door and proudly show them the “Made in the USA” sticker on the door jam.

        • 0 avatar
          JohnTaurus_3.0_AX4N

          Because Toyota would NEVER import from Mexico. Oh no, they’re all about apple pie and could never be guilty of selling us cars (and trucks!) made in Mexico. Bless them.

    • 0 avatar
      bd2

      Frankly, the whole GM importing from China thing is a bit overplayed.

      GM is importing what are relatively low sales volume models (Envision and the hybrid version of the CT6) where it would not make financial sense to spend the $$ on retooling to open another production line in the US.

      It’s like GM not opening a production line of the Impala in Korea (despite the demands of the union there) – plenty of production of the Impala in US to supply the Korean market (where the Impala is selling well).

      • 0 avatar
        MBella

        Yes, midsize crossovers are not popular at all. GM is trying to be under the radar with the car, and slowly build up production.

        • 0 avatar
          bd2

          The Envision is a compact, not a midsize CUV.

          And GM is thinking maybe 40k-50k in annual sales (IHS Automotive predicted 38k in first full year of sale).

          Best sales month for the Envision thus far was last month at 1,648.

          Even if sales increased to 2k/month – that means annual sales of only 24k.

          But let’s say that GM does hit the 40k sales figure with the Envision.

          Last year in China, GM sold over 150k of the Envision and this year will probably sell around 200k.

          Why wouldn’t GM build the Envision in its largest market and export to others?

          If the US/NA demand for the Envision increased to warrant starting a production line here – then that’s a good problem to have (but probably won’t ever happen for the reasons below).

          But as it is with the downsizing since the bankruptcy, it’s not like GM has excess capacity laying around (at least in the US).

          GM just announced that it would be adding a 3rd shift to its Spring Hill facility to increase supply of the XT5 and Acadia.

          And there will be at least 2 new Cadillac crossovers that GM will need to find production capacity for in the US/NA, including the one that will compete in the same size segment as the Envision.

          • 0 avatar
            Drzhivago138

            Buick does advertise the Envision as a “small luxury SUV,” but doesn’t use the term “compact.” It’s really only small in comparison to the Enclave. With its dimensions, the Envision is about the same size as the Equinox/Terrain, which are textbook 2-row midsize CUVs.

      • 0 avatar
        Asdf

        Not overplayed at all. It’s likely to be the beginning of a trend. First we’ll see a so-called “low-volume” car imported, to see whether it’s accepted in the marketplace. Then, when the precedent is set and consumers are used to the idea, more Chinese-made cars will be imported.

  • avatar
    mikey

    @ Principal ….I was picking up a case of beer, a few months ago. I fellow retiree ,that I barely knew, started in on me, about me, about my choice in vehicles. My 2015 Mustang was parked beside his Mexican built 2014 extended cab Silverado. I asked him if you show me your “union label, I’ll show you mine”.

    Conversation over !

  • avatar
    mikey

    @CoreyDL….Yes it was, but i did make my point : )

  • avatar
    bd2

    Would make sense as the US market is expected to be the largest for the next G80 and the upcoming crossover based on the same platform.

  • avatar
    gtemnykh

    I’m starting to see ’15 Genesis sedans in the mid $20s with 30k-ish miles, wow that’s quite a bit of car for the money.

    • 0 avatar
      Macca

      It really is. A friend of mine purchased a first-gen Genesis (base V6, maybe around a 2010 or so) in 2014. It had been a rental car, but I was amazed how well the interior had held up from that abuse. I think it was $15-17k if I remember right.

      He’s not exactly fastidious about his cars, and after two years of his ownership the interior remains in impressive condition. About the only concern I’ve noticed is that the padding in the door armrests has flattened a bit. It’s still solid on the road, quiet, and almost entirely free of rattles and creakiness. Seeing a somewhat neglected example six years on leaves me with the impression that these are screwed together pretty well. That said, I haven’t extensively researched reliability.

      Another colleague has a first-gen R-spec that he’s driven 100k miles since new. It has been pretty well cared for and is in great shape. The V8 sounds good when it’s opened up, but the suspension does seem too brittle for the car. That seems to be Hyundai’s biggest difficulty, hence the Lotus intervention.

      I would consider a new G80, especially if they’d offer the V8 with AWD. The depreciation might be a bit steep, but if you keep your cars I can’t imagine this being a huge concern.

      • 0 avatar
        gtemnykh

        I’m specifically looking at the 2nd gen ’15+ cars, the gen 1s seem to have a reputation for harsh riding suspensions that precedes them. Pass!

        • 0 avatar
          CoreyDL

          The ghost of DeadWeight concurs.

        • 0 avatar
          dal20402

          1st gen does not feel premium anymore the second you drive over the first bump.

          Reviewers have said the 2nd gen has better suspension tuning but I have yet to drive one and remain skeptical given that other Hyundais still have ride/handling issues. I’ve rented far fewer cars over the last year or so as nearly all of my recent travels have been to central cities. I’ll keep trying to self-upgrade to a Genesis.

      • 0 avatar
        onyxtape

        My dad bought a 2010 (or 2011?) barebones Genesis for $28k new. It’s a pretty sweet deal. Though it’s clear that Hyundai still had some ways to go before it reaches Japanese quality at the time. There were about half a dozen warranty repairs in the last 5-6 years that we’ve never had with our Japanese purchases in the past.

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