Genesis Moves GV70 Production Back to Korea as Hyundai Needs More U.S. Capacity

Genesis is moving production of the GV70 SUV, its best-selling model in the U.S., from Hyundai’s Montgomery, Alabama, plant back to Ulsan, South Korea. The move effectively consolidates Genesis vehicle production in Korea for now, where Hyundai already produces much of the Genesis lineup. Genesis’ U.S. manufacturing footprint is being put on hold temporarily to make room for Hyundai production.

Genesis Motor North America COO Ted Mengiste attributed the move to Hyundai’s rapid growth in the United States. Hyundai reported a record 450,568 vehicles sold in the U.S. in the first half of 2026, up 3% from a year earlier, after setting a full-year sales record in 2025. Mengiste said capacity became tight at the Alabama plant, prompting GV70 production to return to Ulsan so Hyundai could gain incremental production capacity.

The GV70 represented a small share of the Alabama plant’s output, but it is central to Genesis’ U.S. business. Business Alabama Magazine reported that the plant produced under 23,000 GV70 vehicles, while the facility has total annual capacity of 400,000 vehicles. Genesis sold 33,876 GV70s in 2025, helping the brand reach a sales record of more than 82,000 vehicles, a 10% year-over-year increase.

The move comes months after Genesis said expanded U.S. production would support its next phase of North American growth. In April, the company announced plans for 22 new or significantly enhanced models through 2030 and connected that strategy to Hyundai Motor Group’s previously announced $26 billion U.S. investment. Hyundai Motor Company CEO José Muñoz said the company’s basic principle is to produce where it sells, but lower-volume vehicles may not justify multiple production locations.

Genesis’ new all-electric GV90 SUV will also be produced in Korea and is expected to reach U.S. dealers in the first quarter of 2027. Muñoz said the GV90 will not be produced in America in the short term, partly because expected volume makes centralized production more practical. Mengiste said moving GV70 production back to Korea does not mark the end of Genesis’ U.S. manufacturing footprint, adding that the brand intends to return.