Hyundai Motor President Kim Dong-jin announced the company's decision after its board of directors met early Tuesday morning at its Seoul, South Korea headquarters.
"Our decision to build this facility in Montgomery, Alabama, underscores our commitment to the U.S. market," said Mong Koo Chung, chairman of Hyundai Automotive Group. "American consumers have increasingly placed their trust in Hyundai automobiles, as witnessed by our track record of strong sales growth over the last several years."
Alabama Gov. Don Siegelman said he received a phone call shortly before 10 p.m. EST Monday from the president of Hyundai telling him the plant would be built in Alabama. The plant, with some 2,000 employees, has been sought by city and state officials for months.
"This is a tribute to the people of Alabama that a renowned corporation like this would look to Alabama for a place to call home. It's a tribute to the state's world class workers," Siegelman said.
Glendale, Ky., and Montgomery had remained on Hyundai's final list of candidates for the $1 billion plant after it ruled out Mississippi and Ohio.
The four U.S. states had been vying to host the Hyundai plant, which will hire 2,000 people and make 300,000 cars a year beginning in 2005.
Hyundai, South Korea's largest automaker, posted a net profit of $900 million last year, the highest profit in its 35-year history. The company credited brisk sales of expensive luxury cars and sport utility vehicles.
Kentucky Gov. Paul Patton said that Hyundai telephoned him about its decision.
The Alabama Legislature last month approved a $118 million package of incentives to encourage Hyundai to locate its assembly plant near Montgomery.
The incentives, promptly signed into law by Siegelman, include $75 million to train workers for automobile assembly line operations at Hyundai. The remaining funds could be used to assist the automaker in other ways, and acreage near Hope Hull on the southern border of Montgomery was purchased for the prospective Hyundai plant.
In the past decade, Alabama has been selected by Mercedes and Honda for major assembly plants, and the Hyundai plant could give another huge boost to the state's emerging status in the automotive industry.
The Kentucky House passed an incentives package Monday night worth $123 million. Those enticements include money for land acquisition, site development, worker training and a direct payment to Hyundai.
House Majority Leader Greg Stumbo said Kentucky's package was slightly more generous than Alabama's.
Kentucky's auto industry includes General Motors Corp., which makes Corvettes at a plant in Bowling Green, while Ford Motor Co. produces sport utility vehicles and pickup trucks in Louisville. Toyota builds Camrys, Avalons and minivans in Georgetown.
David Bronner, chief executive officer of the Retirement Systems of Alabama and a key player in efforts to attract new business into the state, said the plant would be a major boost for the Alabama economy.
He said the Hyundai facility would strengthen Alabama's growing reputation as a player in the automobile manufacturing industry. Mercedes Benz recently announced it is expanding its plant at Vance in Tuscaloosa County that makes M-Class sports utility vehicles, and Honda has constructed a manufacturing plant at Lincoln in Talladega County where it will make Odyssey minivans.
Hyundai makes the Accent, Elantra and Sonata, among other vehicles. The plant would be Hyundai's second in North America.
The company built a plant in Bromong, Quebec, in 1989, the first overseas auto assembly plant by a South Korean automaker. Hyundai closed the plant in the 1990s because of a dwindling demand for the medium-size Sonata in North America.
"Hyundai is in the process of doing more design and engineering in the United States so that our products will be even better adapted to the American consumer's needs and tastes," said Chung.
http://accesswdun.com/article/2002/4/196612