In a significant stride towards enhancing production and strengthening its foothold in the SUV market, Hyundai Motor Manufacturing Alabama (HMMA) announces a major investment of $290 million. The venture is set to fuel the production of Hyundai's SUV models, including the all-new fifth-generation Santa Fe.

Of the total investment, a substantial $190 million is earmarked for tooling and equipment upgrades, primarily aimed at facilitating the production of the new Santa Fe. Since its inception in 2006, HMMA has been assembling the Santa Fe and the new generation marks the first complete model overhaul since 2018. The SUV is awaiting its place alongside the Hyundai Tucson and Santa Cruz Sport, as well as both the electric and gas editions of the Genesis GV70 luxury SUV.

Gallery: Hyundai invests $290 million into Alabama plant

“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,” said Alabama Governor Kay Ivey. “I can’t wait to see the exciting new design on roads in Alabama and across the nation.”

In addition to the $190 million investment in the production of the Santa Fe, a further $100 million will be invested into the ongoing production of the Tucson and Santa Cruz. The centerpiece of the investment, however, is the all-new Santa Fe, which gained a bold exterior design, a spacious interior with sustainable materials, and a 12.3-inch panoramic curved display in its latest iteration.

Hyundai will sell the model with two powertrain options in North America. A turbocharged 2.5-liter four-cylinder engine, delivering 277 horsepower and 311 pound-feet of torque, paired with an eight-speed dual-clutch automatic transmission is the flagship option. A turbocharged 1.6-liter hybrid setup generating 177 horsepower and 195 pound-feet of torque offers a more environmentally conscious alternative as a base option. The automaker is yet to announce pricing for the new Santa Fe in the United States.

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