Hyundai to build new engine plant in U.S.

Hyundai announced today its intention to build a new engine plant in the U.S. at its current lone production facility in Montgomery, Alabama. The new facility will cost Hyundai around $270 million and add an additional 520 jobs to the plant. Engines produced at the new facility, which will break ground in September 2008, will supply not only Hyundai's Alabama plant, but also Kia's new plant in Georgia. Considering the numerous labor distputes Hyundai has had to deal with in its native South Korea, moving production outside the country is a move that will hopefully bring the automaker more security in its production process.

As an a aside, Hyundai also set 2009 as the date when it will begin producing hybrids, ramping up to an annual production of 300,000 hybrids by 2015. Currently, the only peek we've had at Hyundai hybrid is the Kia Rio Hybrid recently shown at the Geneva Motor Show.

[Source: Automotive News]

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