Hyundai Motor is set to expand its stake in South America further by extending to build another plant in Brazil. The plant will have a capacity of about 100,000 vehicles in production, which will improve the company’s facility to create in Latin America and will continue to increase relations with the continent.
The plant is going to be located near Sao Paulo.
Hyundai and its affiliate, Kia, has said that it has been looking to build a second plant in Brazil since early 2007. Relationships with Hyundai and Brazil have been good as of late, with the car company looking to increase its foothold in a continent that purchases an awful lot of its products. By adding a second plant, Hyundai remains close to the people and should be able to accurately match production with demand.
Hyundai declined to give further details but Maeil Business Newspaper reported that the new plant will produce “flex-fuel” cars, which can run on both gasoline and ethanol. Construction of the plant is said to be completed by 2011, with full production capacity set to be reached shortly after that.
News of the plant improved Hyundai’s already-rising stock prices and improved the portfolio of the company by displaying its diversity. With hopes for growth in the region of increasing importance, Hyundai’s move is admirable. Hyundai dealer outlets in South America traditionally do well, leading to increased international interest in the continent.
October 13th, 2008 at 7:07 pm
This is excellent news for Hyundai and their auto dealers.
John