Hyundai has a nice problem with its Palisade | Car News

Considering the fact that its arrival on the sector, the Hyundai Palisade has proven to be quite well-liked with North American potential buyers. In point, this past August, the SUV was the fourth greatest-marketing model in North America.

So what is actually the challenge? Hyundai is reportedly struggling to continue to keep up with demand from customers. In point, in accordance to Korean information outlet Newsis, the organization is currently functioning on eventualities that could allow it to meet up with North American demand from customers.

1 of those people eventualities consists of beginning to build the Palisade at Hyundai’s U.S. plant in Alabama, wherever other utility vehicles these as the Tucson, Santa Fe and new Santa Cruz are assembled.

The Palisade is currently developed at Hyundai’s Ulsan plant in South Korea along with the Staria van. The plant exports between 6,000 and 7,000 models of the Palisade to the U.S. each and every month, but demand from customers is between 8,000 and nine,000 models.

That’s named having a nice challenge. But it truly is a challenge even so.

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There are obstructions to bringing output stateside. Hyundai Motor Union claims that shifting Palisade output to the U.S. is not appropriate, yet again in accordance to Newsis. The explanation is not disclosed, but we can guess that it has to do with a worry of dropping property there.

Another remedy would be to redistribute the vehicles developed in the distinct Hyundai factories in Korea. Output of the Staria, for illustration, could be transferred to the Jeonju plant, nevertheless that is strongly opposed by the union at the Ulsan plant. Assembly of the Palisade could also be moved to the Jeonju plant, nevertheless the challenge there is that the plant is outfitted to create industrial vehicles, and there would be considerable cost in changing it to accommodate the Palisade, in accordance to experiences.

Hyundai has seemingly not still built a determination on how to resolve the provide-demand from customers challenge for the Palisade, but time is of the essence. As they say, time is cash.