Hyundai Motor Group announced today it would boost the output of its All-New Tucson SUV by adding production at a South Korean plants that currently makes sedans in order to meet demand from local and overseas markets including the United States.
[ads id=”0″ style=”float:left;padding:9px;”]Hyundai & Kia has been suffering slowing sales and earnings, partly due because of capacity constraints for its popular SUVs.
Hyundai said it had agreed with its South Korean union to start making 50,000 of its redesigned Tucsons annually at a second factory in Ulsan, which produces the Elantra compact.
The South Korean carmaker currently makes the new Hyundai Tucson only at another factory in Ulsan, which is unable to meet demand.
The company launched its revamped Tucson in South Korea in March and this month started production for exports to North America, Australia and Asia. Tight supply for the Tucson has led to a two-and-a-half month backlog for exports, the company said.
Hyundai Motor’s U.S. chief last year said he expected to double U.S. sales of the new Tucson from 45,000 thanks to greater availability from South Korea.
Sales of the existing Tucson in the U.S. fell 6 percent to 15,147 vehicles during the first four months of the year in a market that has grown 5.4 percent.
Source: [AutoNews]
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