Hyundai’s Ulsan, Korea, manufacturing facility started producing the new 2023 Hyundai Palisade in May 2022, and cars are already on display in American stores. For 2023, there are five trim levels in the lineup. The manufacturer’s suggested retail price (MSRP) for the entry-level SE trim is just under $35,000 before destination charges, taxes, and fees, and the MSRP for the top-of-the-line Calligraphy trim is somewhere near $50,000.
The XRT trim was added by Hyundai for the 2023 model year. It features black leatherette seats, a dark-toned grille, and distinctive 20-inch alloy wheels. With a hands-free liftgate, heated power front seats, tri-zone automatic climate control, wireless phone charger, and Digital Key 2, the SEL is one of the most expensive models. The SEL trim’s starting price is around $38,000.
This evaluation focused on a 2023 Palisade Calligraphy, which Hyundai product planner Melvyn Bautista referred to as the lineup’s finest value. Luxury amenities including an Ergo Motion massage driver’s seat, Nappa leather upholstery, a video full-display rearview mirror, and reverse parking collision-avoidance aid are all standard on the Hyundai Calligraphy. The single extra feature on the test car with the opulent Calligraphy trim was a set of carpeted floor mats ($215). Prior to taxes and fees, the total cost was $52,310 after the $1,295 destination charge.
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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?
Hyundai’s Palisade Problem Is a Nice One, But It Is Still a Problem
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.
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.
Hyundai is struggling to keep up with demand for the Palisade.
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.
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.
Who makes the engines for Hyundai Palisades?
There are presently only three engine choices for the Hyundai Palisade. A 3.5 and 3.8L Lambda II V6 engine is one of these. In the moment, these engines are produced at the Hyundai Motor Manufacturing Alabama facility in Montgomery, Alabama. One of Hyundai’s biggest American locations is this one. Here, Lambda engines are not the only thing produced; some models are also assembled.
Additionally, a R II diesel engine is available for the Palisade. The R II diesel engines are also produced in Gurugram, India, where Hyundai also builds its diesel engines.
Why is the Hyundai Palisade so well-liked?
The Hyundai Palisade from 2023 excels in almost every area. It includes a classy and roomy interior, a comprehensive list of standard technological and driver-assistance technologies, an intuitive infotainment system, and a smooth ride and handling. One of its few drawbacks is its average gas mileage.
Hyundai Palisade dependability
- For the 2020 model year, the Hyundai Palisade made its way to American soil, taking the place of the Santa Fe XL as the brand’s largest vehicle.
- Only one recall and 90 complaints have been reported to the NHTSA for vehicles from 2020 and 2021. None are so serious as to shorten the SUV’s lifespan.
- Popular automobile websites have provided positive dependability reviews for the Hyundai Palisade. J.D. Powers gives the SUV a score of 78 out of 100, and Repair Pal gives it 3.5 out of 5 stars.
- The Palisade appears to be a gem in comparison to competitors like the 2020 Ford Explorer, which has already been subject to 12 recalls and nearly 300 complaints.
- In the end, more sales data on the Hyundai Palisade are required to be certain, but early reports indicate that 200,000 miles are quite likely to be reached.
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.
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.