Hyundai plans to expand manufacturing operations in Nuevo Leon, state official says

5 November, 2018

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Government officials from the state of Nuevo Leon revealed last week that Hyundai plans to expand its manufacturing operations through the plant operated by its sister company Kia Motors.

According to a report by the state-owned news agency Notimex, now that the negotiations to modernize trade rules between the United States, Mexico and Canada have settled, Hyundai is studying the possibility of building a second vehicle at the plant located in Pesqueria, Nuevo Leon.

To said report, which cites as source Miguel Angel Cantu, general director of the Corporation for Tourism Development of Nuevo Leon, adds another that indicates that the Korean automaker has decided, after much speculation, to build its first pickup aiming to launching it between 2020 and 2021.

According to The News Wheel, Hyundai still does not define where it will produce the Santa Cruz and is considering not only its own plant in Alabama, but also those of Kia located in Georgia and Nuevo Leon.

It is worth noting that the Santa Cruz, which saw the light in concept form for the first time in 2015, will enter a highly competitive market, which includes the Honda Ridgeline, the Toyota Tacoma, the Chevrolet Colorado and its twin sister the GMC Canyon, as well as the Ford Ranger which is about to enter showrooms across the U.S.

This competition will make its sales limited in the United States, which could be offset by higher deliveries in other markets. That is just the strategy that Kia has followed in its Pesqueria plant due to the low sales in North America of the compact sedans that it produces there.

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