This undated photo provided by Hyundai Motor Co. shows a production line of Palisade SUVs.
SEOUL, Aug. 30 (Korea Bizwire) — Hyundai Motor Co.’s labor and management have made the strategic decision to repurpose a sedan production line in response to the growing demand for SUVs.
Sources familiar with the industry confirm that this decision was reached on Tuesday during a meeting of the Employment Security Committee at the carmaker.
The move is a response to the current market dynamics, where the SUV production line is experiencing high demand due to the global popularity of SUVs, while production lines for passenger cars are encountering reduced volumes and concerns about job security.
Consequently, the production timeline will see North American Palisade production commence next March on Line 1 at Ulsan Plant 5.
Additionally, production of the Tucson model will be ramped up in the second half of next year at Ulsan Plant 3.
These dedicated production lines will receive Palisade volumes from Line 1 at Ulsan Plant 4, as well as Tucson volumes from Line 2 at Ulsan Plant 5.
It’s worth noting that earlier, in light of the backlog of SUV orders in North America, Hyundai Motor North America had reportedly explored the possibility of establishing a new plant in Canada if the Ulsan plant was unable to meet the increased demand for SUVs.
In this context, the labor union has been actively advocating for the safeguarding of domestic jobs by means of work-sharing arrangements rather than the establishment of new overseas plants.
Coordinating production across domestic plants necessitates the consent of the union’s members.
The union is optimistic about the growth trajectory of Palisade sales, anticipating an increase from 225,000 units in 2025 to 252,000 units in 2026.
Similarly, Tucson sales are projected to rise from 290,000 units to 313,000 units over the same period.
Kevin Lee (kevinlee@koreabizwire.com)
