"Hyundai’s most productive car plant sits on a former cotton plantation on the southern edge of Montgomery, Alabama, where it pumps out Tucson crossovers, Santa Fe SUVs and other models on three shifts, 24 hours a day, sometimes seven days a week.
The factory and its popular models have propelled the South Korea automaker and its affiliate Kia into the No. 4 spot in US sales for the first time in 2023, surpassing Jeep and Ram owner Stellantis NV. Its high levels of output, close-knit supply chain and low labor costs have buoyed Hyundai Motor Co.’s profit margins, which are among the best in the global auto industry.
But this crown jewel has been tarnished by its low wages, a major engine recall and lingering fallout from the use of child labor in its local supply chain. And Hyundai’s future success in the US will rely less on its Alabama operation as it plans a rapid shift to electric vehicles despite uncertain demand and government support given the potential return to power of former President Donald Trump.
“Hyundai has to be careful not to grow too fast for its own good,” said Sung Hwan Cho, a former executive vice president at the carmaker and current president of the International Organization for Standardization. “A stalk that sprouts too quickly will tumble over.”
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