Hyundai to increase Tucson output

High demand in the U.S. prompts increased production.

Hyundai announced Friday that it will add Tucson production at the South Korean manufacturing facility where it currently assembles sedans in order to meet skyrocketing CUV demand in the United States.

According to Reuters, Production of the overhauled Tucson has been ongoing in South Korea since March, but until recently factory output was dedicated to home-market deliveries. Export production is now underway.

Hyundai recently initiated the process of expanding U.S. production capacity at its Alabama facility, but while the Tucson is assembled there, it is not necessarily the vehicle that will benefit from the expansion.

Details regarding the monetary investments and new jobs have yet to surface, but the Santa Fe and Tucson are both viewed as likely candidates. The Alabama facility already builds the Elantra and Sonata, while the Santa Fe is assembled at Kia's Georgia plant.

Hyundai has been hesitant to expand production capacity since chairman Chung Mong-koo initiated a quality-focused shift in 2012. Insiders early last year suggested the company was finally considering new plants, but the US was viewed as unlikely to win out against Mexico or China.

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