Hyundai Motor Manufacturing Alabama will invest about $450 million at its Montgomery plant to build hybrid and range-extender engines for the all-new Tucson and a refreshed Santa Fe. Tucson production starts before 2026 ends.
The investment adds engine variants to the facility, which has received nearly $2.2 billion in total spending since production began in 2005. The funding covers equipment, tooling, and infrastructure for both SUV programs at a plant that employs 4,200 people and currently builds the Santa Cruz.
Building hybrid and range-extender engines locally allows the plant flexibility as demand shifts between combustion and electric powertrains. The project forms part of Hyundai Motor Group's $26 billion U.S. commitment for 2025 to 2028. Hyundai Motor Company President and Chief Executive José Muñoz first outlined the Alabama projects in September 2026.