AUTOMOBILE

Hyundai Mulls Palisade US Production To Meet Strong Demand

The Hyundai Palisade has been enjoying a strong demand from American car buyers ever since its arrival. In fact, the large SUV is the automaker’s fourth best-selling model in August 2021. Year-to-date sales of the Palisade amount to over 56,700, which is a tad more than what Hyundai sold last year.

That said, it comes as no surprise that Hyundai is having a hard time keeping up with the demand for the Palisade. According to a report by Korea’s Newsis, the automaker is currently devising plans to curb the shortage.

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One of the measures being considered is producing the Palisade in Hyundai’s Alabama manufacturing plant, which makes other utility vehicles such as the Tucson, the Santa Fe, and now the fast-selling Santa Cruz.

Of note, the Palisade is currently being produced in Hyunda’s Ulsan Plant 4 alongside the Staria. The plant exports 6,000 to 7,000 Palisade units to the US per month, while demand ranges between 8,000 to 9,000 units.

However, Hyundai Motor Union said that moving the Palisade’s production to the US is not acceptable, Newsis reports. The reason’s undisclosed in the report.

Another solution being considered is to shuffle around the vehicles produced in various Hyundai plants in Korea. The Staria could be transferred to the Jeonju plant, something that’s strongly opposed by Ulsan Plant 4 labor union. The production of the Palisade can also be transferred to the high-yielding Jeonju plant, but that’s highly unlikely because that plant is equipped to produce commercial vehicles. Remodeling the plant to make Palisades could mean hefty investments.

Hyundai has yet to reach a final decision regarding its production shortage issue. It’s a good problem, some might say, but still a problem nonetheless since the company isn’t going to profit if it couldn’t deliver.


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