Demand for the Hyundai Palisade is proving to be so strong that the car manufacturer is said to be looking for ways to increase production of the large SUV.
The Palisade is currently built at Hyundai’s Ulsan Plant 4 in Korea. This site builds between 6,000 and 7,000 units for the U.S. market each month, but according to Korea’s Newsis, U.S. demand sits at between 8,000 and 9,000 units.
The car manufacturer has apparently looked at a handful of different ways to deal with the shortage. One possibility is for it to also start building the Palisade at its plant in Alabama. It is also possible that production of the Staria could be moved from Ulsan Plant 4 to the Jeonju Plant, allowing for an increase in Palisade production at Ulsan.
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However, Newsis claims that the workers’ union at Hyundai’s Ulsan Plant 4 opposes the idea of moving Staria production to the Jeonju plant, believing that the Ulsan factory should continue to produce both vehicles in case the popularity of the Palisade wanes in the future.
The report says that the Jeonju plant has the capacity to produce 100,000 commercial vehicles such as buses and trucks annually but last year produced just 36,000 vehicles. It is reported that Hyundai is currently holding negotiations with its unions to address the matter.
Correction: The original version of this article mistakenly reported that U.S. demand for the Palisade stands at 8,000-9,000 units annually instead of monthly.
