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Hyundai expanding US plant capacity for SUV production

With cheap gasoline still driving CUV and SUV sales, three anonymous sources are reporting to Automotive News that Hyundai is looking to expand production at its Montgomery, AL factory with an eye towards production of high-riders. The Montgomery factory is currently responsible for Elantra and Sonata production, although as both sedans have faced slagging sales, Hyundai is seemingly taking a second look at its production priorities. "It's a new assembly line right next to the current Alabama line. State of Alabama is negotiating final terms," one of the sources told AN. The other two sources, meanwhile, indicated that while the company has been mulling expanded production in America, a final decision hadn't been made yet. As for what vehicle could join the Elantra and Sonata on a new line in Alabama, Korea Investment and Securities auto analyst Suh Sung-moon told AN the Santa Fe could move from its current home at the Kia facility in Georgia, although the Montgomery factory could also accommodate production of the compact Tucson (it's unclear if Suh was referencing the next-generation Tucson that debuted in Geneva or the current model) or even a pickup truck, were Hyundai to go such a route. Meanwhile, AN reports that Korea's Yonhap News Agency expects the Montgomery facility to be able to produce 300,000 vehicles, including an SUV, by 2017. While Hyundai declined Automotive News's inquiries, we have our ear to the ground for any official information from the South Korean marque.

2016 Hyundai Sonata Hybrid and Plug-In First Drive

Hyundai is coming to the plug-in hybrid sedan party a bit late. No surprise there. Company execs are fully aware of that fact and were eager to say, "Hey, no big deal," at a media briefing on the new 2016 Sonata Hybrid and Plug-In Hybrid in California last week. The press materials for the new cars offered lots of comparison charts that "proved" (using numbers) that the Hyundais are all-around better than their midsize competition. While Hyundai is at the forefront of the hydrogen fuel cell game in the US with the Tucson Fuel Cell Vehicle, the Korean automaker has a lot of ground to make up when it comes to plug-in vehicles. Good thing, then, that the Sonata is a smooth operator and solid performer out on the road. If you're going to show up late, you better make a dramatic entrance. While I much prefer the distinctive shape of the sixth-generation Sonata, there's nothing inherently bad about the new style in the current models. The Hybrid and PHEV update the seventh-gen look of the 2015 Sonata with more aerodynamic front and rear ends, new rocker panels, distinctive headlights and taillights, and eco-spoke alloy wheels. All of these changes reduce drag, dropping the coefficient from 0.27 in the gas-only car to 0.24 for the hybrids. You know what other vehicle has a 0.24 cD? The Tesla Model S. We asked why the standard Sonata doesn't get this slippery update and were told that the improvements came along after the gas model's design had been locked in, but there is a chance some of these changes will find their way to the non-electric vehicle in a future facelift. After spending a day with the new Sonatas, I can say that Hyundai is most welcome at the plug-in vehicle party. The Honda Accord PHEV and Ford Fusion Energi don't get the attention or sales they deserve, and there are some who will say Hyundai got all dressed up for a shindig that's not really worth attending (ever-stricter fuel economy regulations beg to differ). But the more the merrier, in my opinion. And since the Sonata PHEV will indeed be available in all 50 states (with a big caveat) later this year, it won't be long until we see if Hyundai can inject some life into the scene. The main problem is that we don't yet really know how the PHEV compares in terms of MSRP, since Hyundai isn't releasing pricing until some point closer to launch. The automaker did say it expects the PHEV to qualify for a $4,919 tax credit from the federal government.

We visit Hyundai's Nurburgring test center

Understanding the achievement and the message of Hyundai Motor Group having a European Technical Center at the Nurburgring might be easier if we look at what Hyundai has done in the US. In 1985 Hyundai Motor America set up shop in California. The first car sold here was the 1986 Excel, a rebodied Mitsubishi Mirage with a Hyundai interior treatment. This was the first Mirage, which also served as the Chrysler Colt in hatchback form and circled back as the Mitsubishi Precis so Mitsu could get around Japanese automakers' voluntary export quotas of the time. The Excel made such an impression on reviewers and buyers that in Car and Driver's 1986 review they wrote that "'astounding' is not too strong word" to describe the company's progress, and said, "Our guess is that Hyundai will be a major force in the US car market almost from the moment it opens its doors." Hyundai sold 168,882 Excels in the US in its first year, back when the Ford F-Series led all comers with 544,969 sales. That's what happened. The company sold 168,882 Excels in the US in its first year, back when the Ford F-Series led all comers with 544,969 sales, the Chevrolet Celebrity came second of all vehicles with 408,946 sales, the Honda Accord seventh with 325,004 sales. The Excel sold even better the following year, and the year after that. Three years on, buyers began to discover that one of the things the Excel did best was disintegrate. It's been called "fantastically crappy," Popular Mechanics would later say the Excel "deserved to fail," and they decomposed so thoroughly that you'll have a hard time finding one in any junkyard. Buyers got so allergic to the Flying H badge that sales declined for ten consecutive years. By 1999, when Hyundai's model range was four times larger than it had been in 1986 – Accent, Elantra, Sonata, Tiburon – the brand sold just 90,217 cars in the US. Two important things happened around that nadir. In 1998, as a way of reassuring potential customers, Hyundai became the first automaker to introduce a 10-year, 100,000-mile warranty. In 1999, Mong-Koo Chung became the CEO of Hyundai Motor Company, promoted from 11 years as CEO of Hyundai Motor Service, a role that put him in charge of global warranty claims. Having spent all those years of his life wading through that carnage, he swore when he took the top spot that he'd get the situation fixed. In 2014 the JD Power Initial Quality Survey ranked Hyundai the leading non-premium brand.