Hyundai Motor Ratchets Up U.S. Presence
with Manufacturing Facility
in Alabama

HMMA to churn out 300,000 Sonatas yearly

Hyundai Motor has shifted into high gear its bid for a leap into a global automaker as it has officially dedicated its U.S. manufacturing facility in Alabama last month as the first Korean automaker to do so in the United States, the world? largest automobile market and home of automobile manufacturing.
Among the participants of the grand opening of Hyundai Motor Manufacturing Alabama, LLD (HMMA) on May 20 were Hyundai Chairman Chung Mong-Koo and Alabama Gov. Bob Riley, along with State and Federal Officials . The $1.1 billion plant has been under construction since 2002, and is the company's first U.S. manufacturing facility. The plant employs more than 2,000 team members with high-paying jobs and full benefits. Additionally, sixty-four suppliers have located businesses throughout North America to support Hyundai's new plant. Altogether, these suppliers are expected to create 5,500 additional jobs with a combined capital investment of $500 million.
" This new manufacturing facility reaffirms Hyundai's commitment toward investing in the U.S. economy, as well as its commitment toward U.S. consumers," said Chairman Chung during the ceremony. "American consumers have recognized Hyundai? quality, and this plant will enable us to better serve them." The 2-million square-foot manufacturing plant resides on 1,744 acres of land and includes a stamping facility, paint shop, vehicle assembly shop, a two-mile test track and an engine shop, where the all-new Hyundai 3.3-liter V6 engine is produced. In May, the facility marked the official start of production with its first saleable 2006 Sonata. HMMA will produce 300,000 vehicles per year at full capacity. "For the past three years, Hyundai has been a great neighbor here in the state of Alabama,"said Gov. Riley. " I speak for every resident in the state when I say, we are proud to have Hyundai in Montgomery, and we are even more proud to play a role in the company's growth here in the U.S. and throughout the world. This plant is Hyundai's most advanced plant to date.
All of Hyunda's knowledge in the areas of quality and productivity has been applied to the production techniques in operation at the new Alabama plant.
HMMA's Stamping Shop includes two stamping presses, which deliver 5,400 tons of pressure, making them some of the most advanced in the world. All material flow from the Stamping Shop into the Welding Shop is 100-percent automated.
After arriving by electro-monorails from the Stamping Shop, more than 250 robots in the Welding Shop move the material, weld and seal, converting stamped steel into vehicles by complete automation. Automation prevents possible damage to the steel and helps ensure quality and consistency.
In the Paint Shop, each vehicle body is thoroughly cleaned and a zinc-phosphate coating is applied. This coating allows the water-based electro coat to adhere to the car body. The body is submerged in a cathode dip bath to provide corrosion resistance, and then rotated 360 degrees through each tank (completing twelve full rotations throughout the entire system) to eliminate any air bubbles in body cavities. The vehicle is primed and then painted with a topcoat, which is the final color of the vehicle. With the help of high-speed atomizers and electrostatic charges, the body is given the smoothest finish possible. Final phases of the paint process include application of a final clear coat (which gives the vehicle its shine and gloss), passage through a drying oven, and inspection under intense lighting to ensure there are no imperfections in the finish. One hundred percent of the actual paint application is automated and all paint is water based, which is safer for the environment.
HMMA includes an onsite Engine Assembly Plant for machining and assembly of the V6, 3.3L Lambda engine. The Sonata's engine is entirely new and the most powerful V6 Hyundai has ever produced. The all-aluminum 3.3L V6 generates 235 horsepower and 224 foot pounds of torque.
The General Assembly area includes more than 7,000 feet of state-of-the-art conveyors that adjust to the height of each individual team member to allow for optimum position for installation and reduction of physical fatigue. This also improves quality, as parts are easier to install.
The Final Evaluation area includes a roll test, a high-pressure water test booth and a 2.3 mile test track with a variety of road surfaces to ensure every vehicle is built and performs to meet Hyundai's high quality standards. Designed specifically to meet the needs of the American consumer, the Sonata is the result of three years of intensive, collaborative development at Hyundai's global R&D operations, including those in Michigan and California.
The 2006 Hyundai Sonata, introduced at the 2005 North American International Auto Show, features refined, sophisticated styling and a comfortable interior package so roomy that its U.S. government size classification is "large car," a full class above Toyota Camry, Honda Accord and Nissan Altima.

Sonata sets a new standard for safety with six standard airbags (front and seat-mounted side airbags for both driver and front passenger; plus side-impact air curtains for front and rear outboard passengers), added head restraints, traction control and standard ABS, and for the first time in the mid-size sedan segment, standard Electronic Stability Control (ESC).
The 2006 Hyundai Sonata was designed to achieve five-star ratings in all National Highway Traffic Safety Administration (NHTSA) frontal and side-impact test conditions.
The plant brings Hyundai's commitment to the North American market full circle. Since 2001, Hyundai has invested more than $200 million in design and testing facilities throughout the U.S. With a $30 million design center in Irvine, Calif., a $60 million proving ground in California City, Calif., and a $117 million technical center in Ann Arbor, Mich., Hyundai is able to bring vehicles to life from design, to testing and now to production in the United States.
Tucson and Accent each top small SUV and car segments
Hyundai Motor garnered two segment winners in the 2005 Strategic Vision Total Quality Study. In the influential U.S. market study, Tucson and Accent (tied with Focus and Mazda3) topped the Small SUV and Small Car segments respectively. In addition, 3.61 percent of Hyundai owners reported no problems with their new vehicles, slightly ahead of the industry average, 73.43 percent.
" Hyundai is certainly doing a lot right to grow its position in the U.S. market and provides another blueprint for domestics with its superior interior craftsmanship reported by its owners,?said Daniel Gorrell, Partner-in-Charge of Strategic Vision's automotive division. "Hyundai is within striking range of Toyota and Honda with respect to problems reported. With resolve, Hyundai may match these two quality leaders soon." Hyundai set a new benchmark for the Small SUV segment with its Tucson. Tucson owners rated it higher on roominess, quietness and innovation and reported that it provided them a feeling of refinement, which is typically not present in vehicles in this segment. The Accent offered its buyers superior craftsmanship, style and thoughtfulness.
The Total Quality Study surveyed over 40,000 new-vehicle buyers who purchased their new 2005 vehicles during the October-November 2004 time period. Buyers were asked an extensive array of questions about their complete ownership experience including buying, owning, and driving their new vehicles.


Hyundai Motor Chairman Chung Mong-Koo shakes hands with Alabama Gov. Bob Riley during a ceremony marking the dedication of Hyundai Motor U.S. manufacturing facility in Alabama, the United States. In May, the facility marked the official start of production with its first saleable 2006 Sonata. HMMA will produce 300,000 vehicles per year at full capacity.

Dignitaries, including Korean Minister of Commerce, Industry and Energy Lee Hee-beom, Hyundai Motor Chairman Chung, former U.S. President Bush, are on hand during the dedication ceremony.

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