Key facts
- Genesis is moving production of its best-selling GV70 SUV from its Montgomery, Alabama plant back to Ulsan, South Korea.
- The decision is driven by Hyundai's rapid growth in the US and tight capacity at the Alabama facility.
- Hyundai Motor Group operates three vehicle assembly plants in Alabama and Georgia with a combined annual capacity of approximately 1 million cars.
- The GV70 is a crucial model for Genesis, with 33,876 units sold in 2025, contributing to a record sales year for the brand.
- Genesis' upcoming flagship model, the all-electric GV90 SUV, will be produced in Korea in the short term.
Genesis, the luxury automotive brand under Hyundai Motor Group, is shifting production of its top-selling North American model, the GV70 SUV, from its manufacturing facility in Montgomery, Alabama, back to Ulsan, South Korea. This decision comes as Hyundai experiences rapid growth in the United States, leading to capacity constraints at its US plants.
Ted Mengiste, chief operating officer of Genesis Motor North America, explained that the move is necessary to free up space at the Alabama plant for incremental production capacity for Hyundai vehicles. The Ulsan complex in South Korea already produces a significant portion of the Genesis lineup and will now consolidate all Genesis vehicle manufacturing.
Hyundai Motor Group has a substantial investment in the American South, operating three assembly plants with a combined annual capacity of approximately 1 million cars, a figure planned to increase to 1.2 million. Despite the GV70's importance to Genesis' US sales, its production volume at the Alabama plant was a small fraction of the facility's 400,000-vehicle annual capacity. In 2025, Genesis sold over 82,000 vehicles, with the GV70 accounting for 33,876 units.
Hyundai Motor Company CEO José Muñoz noted that while the company's principle is to "produce where you sell," lower-volume vehicles may not always justify multiple production locations. The brand's new flagship model, the all-electric GV90 SUV, will also be produced in Korea due to expected volume making centralized production more practical. Genesis anticipates the GV90 will reach US dealerships in the first quarter of 2027.
Mengiste emphasized that this production shift is temporary and does not represent the end of Genesis' US manufacturing presence, stating, "We had to leave some room, but we're coming back. And we've made that declaration."