Hyundai to Invest About $450 Million in Montgomery Plant for Hybrid Engines and New Tucson, Adding 53 Jobs

Employers

Hyundai Motor Manufacturing Alabama will invest nearly $450 million to expand production at its Montgomery assembly plant, adding engine capacity for hybrid and extended-range electric vehicles and preparing the factory to build new versions of two of its best-known SUVs, state officials announced Wednesday, Oct. 28.

According to the office of Gov. Kay Ivey, the project, which the governor’s office referred to as Project Game Changer, will create 53 new full-time positions with an average hourly wage of $30.03, or about $62,467 a year. Those are planned positions; the announcement did not give a hiring timeline.

The plant already employs 4,200 people, so the new jobs represent a modest addition to the workforce. The larger significance for workers is what the plant will build: the investment is designed to keep the Montgomery operation in line for future models and powertrains as the auto industry shifts.

What the plant will make

The Montgomery site will expand engine production to support hybrid and extended-range electric vehicle (EREV) technologies, according to the Alabama governor’s office and the Alabama Department of Commerce. The plant will also be prepared for future production of the refreshed Santa Fe and the all-new Tucson, which state officials described as two important products in Hyundai’s global lineup. A caption on the governor’s release said the plant’s expanded lineup will include the next-generation Tucson, including hybrid variants, and the newly redesigned Santa Fe, along with new multi-engine production that includes hybrid engines.

“These investments will support new vehicle production, expanded engine manufacturing capabilities and advanced propulsion technologies that provide customers with greater choice and flexibility as the automotive industry continues to evolve,” HMMA Chief Operating Officer Mark Rader said.

The company did not say when production of the new engines or vehicles would begin.

Two investment figures

The state’s two official accounts describe the dollar amount slightly differently. The governor’s release and the Commerce Department’s article put the investment at “nearly” or “about” $450 million. The caption on the governor’s release, however, lists a capital investment of $412,885,541 alongside the 53 jobs. The release does not explain the difference. Neither source disclosed the value of any state or local incentives.

With this expansion, HMMA’s total investment in Montgomery reaches nearly $2.2 billion since production began in 2005, according to the state.

A large existing employer

The governor’s office said the plant and its suppliers have an annual economic impact of more than $5 billion, and that the facility contributes about $100 million in state tax revenue and more than $12 million in local tax revenue each year. Economic-impact figures of that kind are modeled estimates, not counts of direct jobs.

“This latest investment will strengthen our manufacturing capabilities, support the development of advanced automotive technologies and help prepare our workforce for the next generation of vehicles,” Alabama Commerce Secretary Ellen McNair said.

Montgomery Mayor Steven L. Reed said in the Commerce Department’s account that HMMA “has created opportunities for thousands of families” with more than 4,200 team members.

What it means for workers

For the Montgomery area labor market, the announcement matters more for job security and skills than for headcount. The 53 new roles are a small increase at a plant of 4,200, but the commitment to build future engines and models in Montgomery ties the existing workforce to Hyundai’s next product cycle, as McNair’s remark about preparing the workforce for the next generation of vehicles suggests.

The average wage cited by the state, $30.03 an hour, is an average for the new positions only and does not describe pay across the existing workforce. Job seekers interested in the new roles should watch HMMA’s own hiring channels, since neither the company nor the state said when recruiting would start or which job categories the 53 positions would cover.

Sources

Featured photo: Hyundai Motor Manufacturing Alabama's facility in Montgomery, Alabama, photographed Sept. 16, 2015. Photo: ClaudeH, via Wikimedia Commons (CC BY-SA 4.0). Cropped from the original.

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