Genesis GV70 production moves to the U.S.

Genesis' top-selling GV70 is joining its battery-powered counterpart, the Electrified GV70, on the luxury brand's modest roster of U.S.-assembled vehicles. It will be Genesis' second U.S.-built model.

The compact crossover will be produced at Hyundai Motor Manufacturing in Montgomery, Ala., which also builds the Hyundai Elantra compact sedan, the gasoline and hybrid versions of the Santa Fe, the Tucson compact crossover and Santa Cruz compact pickup.

Hyundai Motor Manufacturing Alabama CEO Ernie Kim said in a statement that since the Electrified GV70 went into production in February, the team has kept the Genesis customer's "highest expectations in mind" and that they are "ready to launch the broader GV70 lineup with the same commitment to safety and quality."

The gasoline-powered GV70 started production in late May. All Alabama-built GV70s will be distributed to U.S. dealers. There are no plans to export.

The factory, which has an annual production capacity of 400,000 units, underwent a $300 million upgrade last spring to add a battery installation space for the Electrified GV70. Part of the investment also went to modify the assembly line of the hybrid version of the Santa Fe midsize crossover.

Adding an electric vehicle to the plant's mission was one challenge, but the bigger evolution was introducing luxury vehicles to Montgomery's complexity.

In addition to training employees on battery installation and safety protocols, they were also schooled in techniques critical to giving greater attention to fit and finish on the high-end Genesis models. Those products, for example, require a different paint process from the plant's mainstream products.

Building the GV70 in the U.S. is part of parent Hyundai Motor Group's strategy to localize production close to its consumer base.

Hyundai sees a bright future for Genesis. Hyundai Motor America CEO Jose Muñoz has said that the premium brand is poised to hit sales of 100,000 before the end of this decade. Genesis closed 2022 with sales of 56,410.

Since its launch in 2021, the GV70 has been getting positive responses from consumers and critics, which has helped Genesis define itself as a bona fide luxury brand in the U.S. market .

The GV70 also has helped speed Genesis’ growth. In May, the nameplate logged sales of 2,047, representing an increase of 73 percent over May 2022, according to data from the company. Through the first five months of this year, GV70 sales topped 9,525, an increase of 34 percent compared to the same period last year.

When Genesis starts phasing out internal combustion engines in 2025 on its way to becoming an all-EV brand by 2030, the Electrified GV70 is expected to take the GV70's place. The EV went on sale in March as the first Genesis to be assembled in the U.S.

Genesis has rolled the electric version out incrementally; it is now available in 23 states. Year to date, it has posted sales of 393.

Genesis also sells the GV60 compact crossover, a dedicated EV, and the Electrified G80, the electric variant of that midsize sedan.

More Genesis EVs are on the way for the U.S. market. Hyundai Motor Group is constructing a massive $5.5 billion EV and battery complex outside Savannah, Ga., that it calls the Metaplant. Muñoz has said that Genesis will benefit most from the Metaplant.

That factory will have the capacity to build 300,000 EVs and is expected to produce six models for Hyundai and Genesis as well as Kia, which shares the same parent while operating as a separate company.

Until then, the Alabama plant will remain the advance plant for the luxury brand in the U.S. market.