Hyundai Commits $450 Million to Montgomery Plant

Hyundai Motor Manufacturing Alabama announced a $450 million expansion on Oct. 28 to upgrade its Montgomery facility. The funding targets new equipment and production tools required for the all-new Hyundai Tucson, which is scheduled to begin production before the end of 2026. The plant will also start building a refreshed Santa Fe.

The investment marks the latest addition to Hyundai’s presence in the state, bringing total capital committed to the plant to nearly $2.2 billion since operations began in 2005. The Montgomery site currently employs 4,200 workers and produces the Santa Fe, Santa Fe Hybrid, Tucson, and Santa Cruz. The new capital will expand the range of engines the facility can build, including units designed for hybrid and extended-range electric vehicles.

Mark Rader, president and CEO of Hyundai Motor Manufacturing Alabama, stated that the move strengthens the company’s manufacturing 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 investments ensure the facility remains a central part of Hyundai’s North American operations for the coming years.

Gov. Kay Ivey attended the announcement at the plant alongside Hyundai leaders and state officials. Ivey described the partnership as a winning team, noting that the company has become synonymous with innovation in the region. "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.

The announcement drew high-level diplomatic attention as well. Kyung-wha Kang, the South Korean Ambassador to the United States, joined the event. She described the investment as an example of the alliance between the two nations 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 package is part of a larger financial commitment by Hyundai Motor Group. The parent company pledged $26 billion in U.S. investments between 2025 and 2028. Hyundai Motor Company President and CEO José Muñoz first revealed the details of this specific investment in late September.

Hyundai officials say the upgrades will give the Montgomery facility more flexibility to adjust production lines as customer preferences shift. The plant will continue to produce current models while integrating the new equipment for the upcoming vehicle releases.