Genesis, Hyundai Motor Group's luxury brand, is putting its US manufacturing footprint temporarily connected clasp to make room for its genitor company, Business Insider confirmed connected Thursday.
Ted Mengiste, main operating serviceman of Genesis Motor North America, said successful an question and reply that Hyundai is moving accumulation of the GV70 SUV — the brand's best-selling exemplary successful the US — retired of its Montgomery, Alabama, works and backmost to Ulsan, South Korea.
The move would efficaciously consolidate Genesis conveyance accumulation successful Korea, wherever Hyundai has its largest manufacturing facility. The Ulsan analyzable already produces overmuch of the Genesis lineup.
Mengiste attributed the determination to Hyundai's maturation successful the US. Hyundai reported a grounds 450,568 vehicles sold successful the US successful the first half of 2026, up 3% from a twelvemonth earlier, aft mounting a full-year income grounds successful 2025.
"Hyundai's increasing very quickly successful the United States, and our works successful Alabama produced Hyundais and Genesis," he said. "But capacity became truthful tight for Hyundai that we took our GV70 accumulation backmost to Ulsan to let for incremental accumulation capacity for Hyundai."
The Seoul Economic Daily first reported the move successful July, citing manufacture sources.
The move comes months aft Genesis said expanding US accumulation would beryllium portion of its adjacent shape of North American growth. In April, the institution announced plans for 22 caller aliases "significantly enhanced" models done 2030 and tied the strategy to Hyundai's multi-billion-dollar finance successful the US.
Genesis said that its "growing US accumulation footprint" and accrued parts localization would thief support sustained growth.
"These caller models, precocious powertrains, and expanded accumulation initiatives build connected Hyundai Motor Group's antecedently announced $26 cardinal finance successful the United States," the institution said successful a connection astatine the time.
Hyundai Motor Group has had a decadeslong finance successful the American South and operates 3 conveyance assembly plants successful Alabama and Georgia, pinch a full yearly accumulation capacity of astir 1 cardinal cars. The institution plans to summation the fig to 1.2 cardinal arsenic it expands its caller Georgia Metaplant.
Genesis represented a mini portion of Hyundai's Alabama output. The Business Alabama Magazine reported successful March that the works produced nether 23,000 GV70 vehicles. The works has a full capacity to build 400,000 vehicles annually.
Still, the GV70 is simply a important portion of Genesis' US business. The institution sold 33,876 GV70s successful 2025, helping Genesis group a income grounds of much than 82,000 vehicles — a 10% year-over-year increase.
Hyundai Motor Company CEO José Muñoz said astatine a media roundtable connected Thursday that the company's basal manufacturing rule is to "produce wherever you sell." However, he added that lower-volume vehicles can't ever warrant aggregate accumulation locations.
Genesis' caller flagship model, the all-electric GV90 SUV, which was unveiled connected Wednesday, will beryllium produced successful Korea. Munoz said the exemplary won't beryllium produced successful America "in the short term," successful portion because the expected measurement makes centralized accumulation much practical.
Genesis expects the GV90 to scope US dealers successful the first 4th of 2027.
Mengiste said during the question and reply that moving GV70 accumulation backmost to Korea did not people the extremity of Genesis' US manufacturing footprint.
"We had to time off immoderate room, but we're coming back. And we've made that declaration," he said.
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