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NINETY EIGHT REGENCY

Hyundai halts production at Ala. plant

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Hyundai halts production at Ala. plant

April Wortham

Automotive News

October 5, 2007 - 3:14 pm EST

Hyundai Motor Co. halted production at its Montgomery, Ala., assembly plant today in an effort to reduce inventory of unsold Sonata sedans.

The plant will close again Friday, Oct. 12, and Oct. 19, Hyundai spokesman Robert Burns said. Further shutdowns have not been determined, he said.

"We expect the idle to be temporary," Burns said.

Through the first nine months of 2007, U.S. sales of the Sonata were down 19.6 percent from the year-ago period. Last month, Hyundai sold 6,550 units of the domestically produced sedan, compared with 8,870 in September 2006.

Average daily production of Sonatas at the Alabama plant fell from 711 vehicles in September 2006 to 429 last month.

At the same time, average daily production of the Hyundai Santa Fe crossover rose to 504 units last month from 405 in September 2006. The Alabama plant is the only production site for the Santa Fe, whose U.S. sales rose 54.6 percent in the first nine months of this year compared with the same period of 2006.

This is the first shutdown for the 2-year-old Alabama plant. It employs about 3,300 and has the capacity to build 300,000 vehicles a year.

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cant wait for this sort of thing to start burdoning toyota...

note to hyundai... you can be fleet king if you want... but it comes with a price...

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Interesting. Are they unable to switch production to a different model? Or is the tooling setup for pretty much just the Sonata? The reason you'll never hear this kind of thing happening to Toyota (or Honda) is because their plants are tooled to be able to produce several different models, they can switch production. But if Toyota were to simply open too many plants, it may step on its own foot.

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Interesting. Are they unable to switch production to a different model? Or is the tooling setup for pretty much just the Sonata? The reason you'll never hear this kind of thing happening to Toyota (or Honda) is because their plants are tooled to be able to produce several different models, they can switch production. But if Toyota were to simply open too many plants, it may step on its own foot.

i think toyota already has quite a few plants in production with the assumption of growth, and i think they'll probably flat line for a few years... they need a slew of new vehicles to continue growth, and they dont have but a few refreshes in the next year or two...

toyotas just got the mind set right now of "if build it, they will come"

something GM got over confident a while back...

Edited by Newbiewar
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:rotflmao:

Wasn't the Sonata just remodeled for 2006 and hailed as a serious competitor to the top Asian sedans and declared better than the domestic sedans? Yet it turned into one of the biggest fleet queens almost overnight? And now they have to idle the plant?

:rotflmao:

I can't wait to see sales once the new Malibu goes on sale next year.

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:rotflmao:

Wasn't the Sonata just remodeled for 2006 and hailed as a serious competitor to the top Asian sedans and declared better than the domestic sedans? Yet it turned into one of the biggest fleet queens almost overnight? And now they have to idle the plant?

:rotflmao:

I can't wait to see sales once the new Malibu goes on sale next year.

you know my wife drove one, for a few days when she came saw me once... she was really impressed, and i was like... <_< Just promise me you'll let me go with you, and we must check out everything being offered (2008 malibu) lol

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I still happen to like the exterior...it's Hyundai's best design...even if it is derivative. The interior got old pretty quick though...I guess the MCE will fix that but I fear what the new face will look like.

The problem is that, while good, all of the competition has moved on...even the Avenger has a powertrain with a 6-speed...if I'm not mistaken the Hyundai only has 5 gears. Not that 5 gears aren't enough...but you can't brag about being one short.

Edited by Dodgefan
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for must rental agencies... they can take as many as the auto manufacture wants to give them...

put 6000 miles on them... sell em back to the dealerships...

they can replace a car as often as once a month... its disgusting really...

rarely do i ever see cars with more then 16k miles on them...

but rather more like 7k...

and it looks bad... seeing a brand new 07 suburban on the used car lot, still in the spring of august... consumers are like... people must not like these cars... look someone turned it in already

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<shrugs> Oh well, one less Hyundai on the road. The sun will still rise tomorrow.

I feel bad for those laid off temporarily though.

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LOL, when I went to Calgary for five days in May I had a rental Elantra. Gotta tell you the truth, it was a nice car to drive, really good on gas. As I was travelling around town and into Banff and Drumheller, I noticed Elantras all around me, all with the same Enterprise stickers as I had.

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Then in the long-run I said, yes it's a nice car, but all it's good for is for rental fleet.

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