It’s a good problem, but it’s still a problem.
Since its introduction, the Hyundai Palisade is in high demand. The large SUV was the fourth-best-selling model for the automaker in August 2021. The Palisade’s year-to-date sales total more than 56,700. This is slightly higher than the Hyundai model last year.
It’s not surprising that Hyundai has a difficult time keeping up with demand for the Palisade. According to Korea’s Newsis, the automaker is working on plans to reduce the shortage.
One measure being considered is the production of Palisade at Hyundai’s Alabama manufacturing facility, which also makes the Tucson, Santa Fe and the hot-selling Santa Cruz.
The Staria and Hyunda’s Ulsan 4 currently produce the Palisade. The plant can export 6,000 to 7,500 Palisade units per month to the US, while the demand is between 8,000 and 9,000 units.
Hyundai Motor Union stated that moving Palisade’s production from China to the USA was unacceptable, Newsis reports. In the report, it’s not disclosed why.
Another option is to move around vehicles made in different Hyundai plants in Korea. Ulsan Plant 4 labor union strongly opposes the transfer of Staria to the Jeonju facility. Although the production of the Palisade could be transferred to the Jeonju plant with its high yielding, it’s unlikely as that plant can produce commercial vehicles. The cost of remodeling the plant to make Palisades can be high.
Hyundai is yet to make a decision on its production shortfall issue. Although it’s a great problem, others might argue that it’s still problematic. However, the company won’t make any profit if they can’t deliver.
Facelifted Palisade Coming Next Year: