Hyundai admitted that without production constraints, the compact crossovers would sell more than the Elantra.
According to Hyundai, currently the time belongs to crossovers. Hyundai has been struggling to meet demand for its utility models. The Hyundai Tucson compact has been seeing production constraints.
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Otherwise the crossover would be outselling Hyundai's perennial volume model, the Elantra. Hyundai Motor America CEO Dave Zuchowski just admitted the fact.
Hyundai has therefore come up with a plan. The wide-reaching plan makes sure Hyundai dealers are stocked with the models people want to buy. The first step of the plan is to up the output of existing crossover models.
As a result Hyundai has inserted tools at its Montgomery, AL, factory to build Santa Fe Sport models. The factory will build crossovers alongside the Elantra and Sonata.
It will increase Santa Fe Sport annual production capacity by about 50,000 units. Even the new Tuscon is being expanded with extra 50,000 or so units of capacity in 2016. It should be noted the Tuscon just went on sale in 2015.
The second part of Hyundai’s plan constitutes introducing new crossover models. Hyundai is already working on a B-segment crossover. The new B-segment will rival Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke.
It’s no surprise the competition is heating up since people want more crossovers. The demand on all luxurious subcompact, compact, midsize, and full size crossovers has been increasing. reported AutoBlog.
The third part of Hyundai’s plan is to get rid of unpopular models such as the Azera. The elimination of the slow-selling sedan will help free up capacity as well as showroom space.
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Getting rid of the Azera also creates a more definite delineation between the Hyundai line-up and the Genesis brand. Hyundai’s plan is based on the continued popularity of crossovers.