Hyundai Investing $190 Million To Build New Santa Fe In Alabama

May 27, 2023

The redesigned Hyundai Santa Fe will go into production later this year and feature two different engines

Hyundai has announced plans to invest $290 (£227 / €267) million into their manufacturing plant in Montgomery, Alabama.

The bulk of the funds will go towards gearing up the plant to build the 2024 Santa Fe, which was fully unveiled last week. Hyundai didn’t go into many specifics, but $190 (£149 / €175) million will be used for tooling and equipment upgrades. The crossover will then go into production later this year.

The remaining $100 (£78 / €92) million will be used to support ongoing production of the Tucson and Santa Cruz. While the automaker didn’t elaborate, Hyundai is working on a facelifted Tucson and we can expect an updated Santa Cruz to follow shortly thereafter.

More: 2024 Hyundai Santa Fe Fully Revealed, Will Offer Two Engines In America

Governor Kay Ivey welcomed the news as she said, “Hyundai’s nearly 4,000 Alabama employees have been making some of the highest awarded vehicles in America for nearly two decades, and the production of the completely redesigned Santa Fe mid-size SUV is another exciting milestone for the company’s Montgomery manufacturing facility. I can’t wait to see the exciting new design on roads in Alabama and across the nation.”

The Santa Fe will go on sale in the United States next year and feature a bold new design as well as a longer wheelbase. The latter helps to create a more accommodating cabin with additional room in the second- and third-row.

Speaking of the interior, customers will find a classier cabin with a Panoramic Curved Display that consists of a 12.3-inch digital instrument cluster and a 12.3-inch infotainment system. They’re joined by a 6.6-inch lower display, a dual wireless smartphone charger, and a speedy 27W USB-C charging port. Other highlights include a UV-C sterilization tray and a “bilateral multi-console” that can be opened by both front and rear passengers.

In North America, the Hyundai Santa Fe will be offered with two different engines including a turbocharged 2.5-liter four-cylinder developing 277 hp (207 kW / 281 PS) and 311 lb-ft (422 Nm) of torque. Customers will also be able to opt for a hybridized 1.6-liter engine with 178 hp (132 kW / 180 PS) and 195 lb-ft (265 Nm) of torque.