The Hyundai Palisade has proven to be quite well-liked by North American customers ever since it first hit the market. In fact, the SUV was North America’s fourth best-selling model in August of last year.
What then is the issue? According to reports, Hyundai is having trouble meeting demand. In fact, the organization is reportedly working on situations that could enable it to satisfy North American demand, according to the Korean news outlet Newsis.
One of those possibilities entails beginning construction on the Palisade at Hyundai’s American manufacturing facility in Alabama, which also assembles other utility vehicles including the Tucson, Santa Fe, and brand-new Santa Cruz.
At the moment, Hyundai’s Ulsan facility in South Korea also makes the Staria van and the Palisade. Although demand for the Palisade is between 8,000 and 9,000 units, the firm only ships between 6,000 and 7,000 of them to the United States each month.
The domestication of manufacturing has challenges. Again citing Newsis, Hyundai Motor Union claims that shifting Palisade manufacture to the United States is unacceptable. Although the cause is not stated, we can infer that it has to do with a concern over losing assets there.
Redistributing the automobiles made at the several Hyundai factories in Korea is an additional approach. For instance, production of the Staria could be moved to the Jeonju factory, despite the union at the Ulsan plant vehemently opposing this. According to sources, assembly of the Palisade might also be shifted to the Jeonju facility. However, there is a snag with that plan: it is set up to make commercial vehicles, so changing it to make room for the Palisade would be quite expensive.
Time is of the essence, but it appears that Hyundai has not yet decided how to address the Palisade’s supply-demand issue. Time truly is money, as they say.
In This Article...
Unions oppose a solution to Hyundai’s Palisade problem, which is a beautiful problem.
In the United States, Hyundai sells for about 7,000 Palisade every month, with a demand of 8,000–9,000 units.
The Hyundai Palisade has proven to be quite well-liked by North American customers ever since it first hit the market. The SUV was actually the automaker’s fourth best-selling vehicle in North America in August of last year.
Then, where is the lovely problem? Hyundai finds it difficult to meet Palisade’s demand. In fact, the corporation is reportedly working on scenarios that could enable it to satisfy North American demand, according to the Korean publication Newsis, according to Auto123.
Producing the Palisade at Hyundai’s US facility in Alabama, which also produces the Tucson, Santa Fe, and the new Santa Cruz, is one of the options under discussion.
In addition to the Staria minivan, the Palisade is now manufactured at the Hyundai plant in Ulsan. Although demand for the Palisade is between 8,000 and 9,000 units, the firm only sells 6,000 to 7,000 of them to the US each month.
According to Newsis, the relocation of Palisade production to the United States was deemed unacceptable by the Hyundai Motor Union. They don’t say why, but we can assume that it has to do with the fact that they don’t want to lose any profits made there.
Redistributing the automobiles made at Hyundai’s different factories in Korea is another of the alternatives envisioned. The union at the Ulsan plant vehemently opposes the potential relocation of the Staria’s manufacturing to the Jeonju plant. The Jeonju plant might possibly be used to assemble the Palisade, but this is doubtful given that Jeonju is set up to produce commercial cars. According to the reports, modifying it to make room for the Palisade would be expensive.
Hyundai has not yet made a choice on its issue, but would be wise to do so soon given that, in the end, earnings are skyrocketing when it cannot fulfill demand.
It’s possible that Hyundai should continue producing Palisade in Korea while also adding US manufacture to the mix. How do you feel? If you were Hyundai’s consultant, what would you suggest?
Locations for Assembly by Generation
There is presently only one iteration of the Hyundai Palisade, which began production in 2018.
The majority of Hyundai Palisades that are sold in the US are produced in Ulsan, South Korea. The majority of Hyundai’s vehicles, including several versions of the Sonata, Tucson, and Santa Fe, are produced at its headquarters.
Additionally, Avtotor manufactures Palisade in Kaliningrad, Russia. One of the biggest automotive manufacturers in the world is Avtotor. Currently, they produce automobiles for Hyundai, Kia, and BMW; in the past, they were also partners with Chevrolet and GMC.
Do you want to know where this Hyundai is manufactured? Where are the body components, headlights, software, and technology made? Check out this article where we examine Hyundai in detail: Here, Hyundai vehicles are produced
I suppose it’s a good problem, but it’s still a problem.
Since its release, the Hyundai Palisade has been in high demand among American automobile purchasers. In fact, in August 2021, the huge SUV was the automaker’s fourth best-selling vehicle. Over 56,700 Palisade vehicles have been sold so far this year, somewhat more than what Hyundai sold the previous year.
Therefore, it is not surprising that Hyundai is struggling to meet the demand for the Palisade. The manufacturer is reportedly developing strategies to reduce the scarcity, according to a report by Korea’s Newsis.
Making the Palisade in Hyundai’s Alabama facility, which also produces the Tucson, Santa Fe, and the current, quickly-selling Santa Cruz, is one of the solutions being evaluated.
It is noteworthy that the Palisade and the Staria are both now being produced at Hyunda’s Ulsan Plant 4. While demand is often between 8,000 and 9,000 units, the plant sends 6,000 to 7,000 Palisade units to the US each month.
The manufacture of the Palisade cannot, according to Hyundai Motor Union, be moved to the US, according to Newsis. The report doesn’t specify the cause.
SERPRESULT
The Kia Telluride, its corporate twin, is manufactured and transported out of West Point, Georgia, whereas the Palisade is made in South Korea.
Where Will the Hyundai Palisade Be Built in 2023? In South Korea, Hyundai is building the 2023 Palisade.
What ought Hyundai to do?
What then should Hyundai do? The Korean Car Blog claims that Hyundai struggles to produce enough Palisades at its Ulsan facility in South Korea. Additionally, this is the sole facility where Hyundai’s SUV is made.
About 6,000–7,000 Palisades are produced by Hyundai per month for export to the US. But in order to follow directions, it requires more. Each month, it sells about 9,000 units. Due to an established supply, Hyundai has been able to do this. But it is quickly running out.
As it seeks to find out how to meet demand, the manufacturer is weighing its choices. It can move some Palisade production to its assembly facility in Alabama. Or it might transfer all Palisade manufacturing to other facilities outside the area.
In what country is the 2022 Hyundai Palisade made?
The Kia Telluride, its corporate twin, is manufactured and transported out of West Point, Georgia, whereas the Palisade is made in South Korea. Hyundai appears to be taking its time delivering 2021 versions of the popular SUV to American dealerships.
Which Hyundai models are produced in America?
The Hyundai Elantra car, Santa Fe and Tucson SUVs, and our first-ever Santa Cruz Sport Adventure Vehicle are all proudly assembled by the team at Hyundai Motor Manufacturing Alabama.
Does Palisade come from Korea?
The Hyundai Palisade is in such high demand that the automaker is reportedly exploring for methods to raise output of the huge SUV.
Currently, Hyundai’s Ulsan Plant 4 in Korea is producing the Palisade. Each month, this facility produces between 6,000 and 7,000 units for the American market, but according to Korea’s Newsis, the country’s demand is actually for 8,000 to 9,000 units.
The automaker reportedly considered a variety of solutions to address the issue. One possibility is that it will also begin constructing the Palisade at its Alabama facility. Additionally, it’s conceivable that manufacture of the Staria may be transferred from Ulsan Plant 4 to the Jeonju Plant, enabling Ulsan to expand Palisade output.
The workers’ union at Hyundai’s Ulsan Plant 4 reportedly opposes the notion of shifting Staria production to the Jeonju plant because they think that the Ulsan facility should continue to produce both cars in the event that the Palisade’s sales decline in the future.
According to the report, the Jeonju facility has the ability to create 100,000 commercial vehicles, including buses and trucks, per year but only produced 36,000 last year. According to rumors, Hyundai is presently negotiating a solution with its unions.
Correction: The original version of this story stated incorrectly that the demand for the Palisade in the United States is between 8,000 and 9,000 units per year, not per month.
Is the Kia Telluride a US-made vehicle?
A mid-size crossover SUV with three rows of seating, the Kia Telluride has been produced and sold by Kia from 2019. The Telluride, which sits above the smaller Sorento, made its concept car premiere in 2016 and will make its production debut in the spring of 2019 as a 2020 model. Its engine, transmission, and wheelbase are all shared with its sister car, the Hyundai Palisade, as are other technical details. The Telluride, which bears the name of the Colorado town of Telluride, is the biggest car Kia has ever produced here.
The Telluride was recognized as the SUV of the year by Motor Trend and the 2020 World Car of the Year.
Why is the Hyundai Palisade so well-liked?
For the South Korean manufacturer, the Hyundai Palisade’s popularity is unprecedented. In consumer surveys and according to testers, it consistently ranks in the top two or three. However, Hyundai wasn’t content to sit on its laurels, thus the 2023 Palisade has undergone significant revisions. Additionally, it receives stronger offroad features in addition to a redesign and interior enhancements.
Palisade sales account for a large portion of Hyundai’s record-breaking sales results. And a large portion of those sales can be attributed to the SUV purchasers’ appeal to the spacious cabin, performance, and details. However, its design is also driving sales. So it’s unexpected that it’s getting such a significant renovation. We now have more details on what else is happening in addition to Allison Barfield’s outstanding post displaying the stolen photographs.
Who manufactures the Palisade car?
Hyundai’s Palisade SUV strives for a class-above experience and almost succeeds, especially in upper trims where its interior can be mistaken for one of the luxury models from the Genesis brand. Despite how it feels and looks, it is not a Genesis; rather, it has a platform in common with the superb Kia Telluride. The standard drivetrain is a smooth-running 3.8-liter V-6 paired with an eight-speed automatic; front-wheel drive is the default setting, but all-wheel drive is also an option. There is a ton of high-tech driver assistance technology and contemporary infotainment connectivity features included as standard equipment. Up to eight passengers can be accommodated in the cabin’s basic three-row seating arrangement, which is both spacious and comfortable. We gave the Palisade an Editors’ Choice award because it is an all-around well-rounded SUV with a premium feel.
What Hyundai models are produced in Korea?
- Kona/Kona EV by Hyundai.
- Hyundai in Tucson
- Korean Accent (global)
- Elantra GT by Hyundai.
- Veloster from Hyundai.
- Ioniq by Hyundai (Hybrid, EV, Plug-In)
- Samsung Nexo.
- Korean Palisade
What about the Hyundai Palisade’s reliability?
The 2020 Palisade receives a 78 out of 100 reliability grade from J.D. Powers. Model scores from 2020 and 2021 are comparable.
How can you tell whether a Hyundai was made in the US or Korea?
Here’s an easy way to get started: just read the VIN, which is the vehicle’s serial number. Cars built in the United States begin with a 1, 4, or 5. Japan-built vehicles have VINs that start with a J.