Hyundai Moving Santa Fe Production to Kia West Point Plant

Hyundai Motor Co. is considering shifting some production from its factory in Alabama to a recently opened plant run by sister company Kia, Hyundai spokesman Robert Burns said.

Moving some production from Hyundai's Montgomery, Ala., plant to Kia Motor Co.'s West Point, Ga., facility could be a way to maximize the efficiency of both plants, Burns said.

Any final decision would come from the South Korean headquarters of Hyundai, which owns Kia, he said.

"They're evaluating options to make sure we fully utilize the capacity of U.S. production," Burns said.

Hyundai's Montgomery plant currently builds the Sonata sedan and the Santa Fe SUV. Kia's plant in West Point, which began production late last year, builds just the Sorento SUV.

Sales of both companies have risen sharply in the U.S. in the last year. Hyundai sales are up 20 percent year to date, while Kia sales have climbed 13 percent, according to Autodata Corp.

News of the possible shift was first reported by the trade publication Automotive News.

[Source: BusinessWeek]