Hyundai pours $450 million into Montgomery plant for new cars and engines

Hyundai Motor Manufacturing Alabama will spend $450 million on its Montgomery facility. The company made the announcement on Oct. 28. The money covers new equipment, production tools, and plant improvements. It also expands the range of engines workers can build, specifically those for hybrid and extended-range electric vehicles.

Production of the all-new Hyundai Tucson is scheduled to begin before the end of 2026. The plant is also preparing to build a refreshed Hyundai Santa Fe. Mark Rader, president and CEO of Hyundai Motor Manufacturing Alabama, said the investment strengthens the facility's capabilities. "Today marks another significant milestone in Hyundai’s commitment to Alabama and to the future of manufacturing in the United States," Rader said. He added that the changes ensure the plant remains a cornerstone of Hyundai’s North American operations.

The Montgomery operation has been running for 21 years. Production began in 2005. Since then, Hyundai has invested nearly $2.2 billion in the facility. The plant currently employs 4,200 people. It produces the Santa Fe, Santa Fe Hybrid, Tucson, and Santa Cruz. Hyundai stated that the new projects give the facility more flexibility to adjust production as customer preferences shift.

State and national officials attended the Oct. 28 announcement at the plant. Gov. Kay Ivey was joined by Alabama Commerce Secretary Ellen McNair and South Korean Ambassador Kyung-wha Kang. Ivey described the partnership as a winning team. "Since its founding in Montgomery 24 years ago, Hyundai Motor Manufacturing of Alabama has become synonymous with cutting-edge design and endless innovation in performance," Ivey said. She noted that the investment will propel the partnership to greater heights.

Ambassador Kang highlighted the alliance between South Korea and the United States. She described the investment as an outstanding example of the ROK-U.S. alliance in action. "Hyundai Motor’s additional investment announced today reaffirms this strong partnership and further deepens the integration of our two countries’ automotive industries," Kang said.

The $450 million figure is part of a larger corporate strategy. Hyundai Motor Company President and CEO José Muñoz first announced these investments in late September. They are part of Hyundai Motor Group’s $26 billion commitment to U.S. investments from 2025 through 2028. Rader credited the dedication of the team and the support of state and local partners for making the facility one of the most productive in North America.

The next step for the plant is the start of Tucson production. That is set to happen before the end of 2026. The Santa Fe refresh will follow as production lines are adjusted for the new engine types.