The Hyundai Palisade, left, and Kia Telluride flagship crossovers are updated for 2023. The Palisade goes sportier, while the Telluride will offer new off-road trims.
Hyundai Motor Group grabbed the spotlight at an under-attended New York auto show last week to unveil product and manufacturing plans for the Hyundai, Kia and Genesis brands while also revealing plans to invest in U.S. electric vehicle manufacturing.
Many automakers skipped the return of the show — canceled since the outbreak of the coronavirus in 2020.
So Hyundai, Kia and Genesis — all brands that appear to be weathering the current downturn in new-vehicle sales — seized the opportunity.
Speaking at the Automotive Forum in New York on the eve of the show, Hyundai Motor America CEO Jose Muñoz announced the automaker will build the hybrid version of the Hyundai Santa Fe midsize crossover and the Genesis Electrified GV70 compact crossover at its plant in Montgomery, Ala.
On Automotive News' "Daily Drive" podcast, Muñoz said the company will also build an assembly plant in the U.S. for EVs and batteries.
The moves are part of a $7.4 billion investment that Hyundai Motor Group previously said it will make in the U.S. by 2025 to produce EVs, upgrade factories and develop smart mobility technologies.
The Santa Fe Hybrid will go into production in October and mark the start of the Korean automaker's electrified vehicle production in the U.S.
The new models for the Alabama plant will require a $300 million investment and create 200 jobs, Muñoz said.
Assembly of the electric Genesis will begin in December. Hyundai's Elantra compact sedan, gasoline Santa Fe, Tucson compact crossover as well as the Santa Cruz compact pickup are also built at the Alabama factory.
Hyundai already has the Kona Electric, a battery-powered version of its Kona subcompact crossover that was freshened for the 2022 model year.
The recently debuted Hyundai Ioniq 5 electric crossover has been well received by consumers and auto critics.
During the New York show, an international jury of journalists named the Ioniq 5 World Car of the Year. It is the first in a line of forthcoming EVs that will be part of the Ioniq subbrand.
Sibling brand Kia also is emphasizing electric. The EV6, which shares a platform with the Ioniq 5, has been attracting consumer interest, and a larger Telluride-sized crossover, the EV9, will be the next to launch in the U.S. Kia America COO Steve Center told Automotive News that production of the EV9 would begin in the fall of 2023.
At the show, Kia introduced its second-generation Niro subcompact crossover, confirming it will come to North America, offering a gasoline-electric hybrid, plug-in hybrid and fully electric variant.
Kia and Hyundai both revealed midcycle makeovers of their flagship three-row crossovers — the Kia Telluride and Hyundai Palisade, both of them kid-haulers that have been successful since their 2020 model year debut.
The Telluride posted a 25 percent increase last year, with sales of almost 94,000. The Palisade closed the year up 5 percent, topping 86,500 sales.
Amid slow industry first-quarter sales, the Palisade fell 0.9 percent to 21,025, but the Telluride squeaked out a 1 percent year-over-year bump, topping 22,000 sales. It was one of the few vehicles in Kia's lineup to post a gain.
But Center said Kia doesn't want to take anything for granted and is committed to an "overall strategy to keep products fresh."
"Telluride has brought more than 75 percent of customers that are new to the brand," Center said.
In response, Kia announced in New York that it will increase production of the Telluride by 20 percent at its West Point, Ga., facility, where the K5 midsize sedan, Sportage compact crossover and Sorento midsize crossover also are assembled.
The freshened 2023 Telluride will offer two new off-roading-focused trims — the X-Line and the X-Pro — as well as a larger 12.3-inch touch screen, exterior styling tweaks that give it a more chiseled appearance and an enhanced suite of safety technology.
Changes to the 2023 Palisade have pivoted its styling in a sportier direction and afforded a new rugged appearance package trim called the XRT (also found on the Tucson and Santa Fe). A Tow mode was added to all-wheel-drive models.
Known for its upscale interior, the Palisade also gets a larger 12-inch screen along with a revamped cockpit that includes a new digital gauge cluster, a reshaped steering wheel and horizontal air vents. There are third-row heated seats, outward-expanding second-row headrests and seven fast-charging USB-C ports spread throughout. More safety technology was added to the already-robust menu of advanced driver-assistance tech.
Neither Kia nor Hyundai disclosed pricing for either updated vehicle, and Kia did not give an on-sale date. The 2023 Palisade will go on sale this summer.
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