[Colin]

Hyundai debuted the HCD-15 Santa Cruz concept at the 2015 Detroit Auto Show. With smaller trucks, like the Chevrolet Colorado, GMC Canyon and the upcoming Toyota Tacoma, Hyundai is looking at getting final approval for the Santa Cruz to compete in this growing segment.

Hyundai Motor America CEO Dave Zuchowski told TheDetroitBureau.com that "There is a very high probability we get the approval of the truck soon." Final approval still has to come from Hyundai corporate headquarters in South Korea.

The Santa Cruz was almost universally liked by focus groups. It got a 90% approval rating from potential buyers in product clinics. The exception to this approval were Texans, who weren't such big fans of the small pickup.

The production Santa Cruz may differ quite a bit from the concept as a platform still hasn't been decided on, though the Tucson platform seems likely. One thing that looks likely to stay from the concept is the slide-out bed extension.

So we should all be on the lookout for when final approval comes in from Hyundai's South Korean HQ.

Hyundai Likely to Build Santa Cruz Pickup, New B-Segment SUV | TheDetroitBureau.com

 

[Dex]

Actually thats interesting. They're research polls are asking about the concept truck. 90% approval rating in terms of what? They can't even offer them concrete details...



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[Santana]

And platform has yet to be decided as yet, but it makes sense as once they do that it will have the internet running wild with the info they can already run with along with knowing it's been green lighted.

 

[Tory]

And platform has yet to be decided as yet, but it makes sense as once they do that it will have the internet running wild with the info they can already run with along with knowing it's been green lighted.

a lot of sources are saying it will be the tuscon so that should say something for the possibility of that platform being used.

 

[Dex]

ey did you hear that hyundai is ordering more tucson production... Isn't SC supposed to be based on tucson?



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[BahamaTodd]

Yes its supposed to be based on the Tucson. Hyundai is adding Tucson capacity to one of their plants in Korea, but that wouldn't help the SC. If the chicken tax sticks around, and if the Tucson continues to sell really well, Hyundai will need to produce them in the US.

 

[Colin]

SO does that tax apply to the Santa Cruz but not the Tucson?

Does Hyundai have a factory that we know of in the US or Mexico that would be a good place to build the Santa Cruz?

 

[Santana]

Yes its supposed to be based on the Tucson. Hyundai is adding Tucson capacity to one of their plants in Korea, but that wouldn't help the SC. If the chicken tax sticks around, and if the Tucson continues to sell really well, Hyundai will need to produce them in the US.

Just seen that today and adds more weight to it, which has me thinking that all we just need to hear is that it will indeed be part of that production increase.

 

[BahamaTodd]

SO does that tax apply to the Santa Cruz but not the Tucson?

Does Hyundai have a factory that we know of in the US or Mexico that would be a good place to build the Santa Cruz?

Even though the Tucson and Santa Cruz could end up being almost identical under the sheet metal, the tax only applies to the SC because it has a bed.

Kia is building a new plant in Mexico but that will only be for small cars. There's nowhere else as of now.


The 2016 Tucson just went on sale in other countries and there is already a 3 month waiting list. Hyundai had to add production to another plant in Korea that only builds sedans because they are desperate for capacity. They are going to have an especially tough time meeting demand once sales start in the US.

The popularity of the Tucson will be a major factor in the decision for the SC. If the chicken tax sticks around, the SC will have to be built in North America. Hyundai will be forced to make a large expansion or build a new factory in the North America. Considering Hyundai wants to continue to expand their truck and SUV lineup, its almost guaranteed that they will need to build a new North American factory. Keep in mind that the Kia Sportage also shares the platform with the Tucson and is due for a redesign. The Tucson, Sportage, and Santa Cruz would be a good starting line-up for a new plant.

As far as timing goes, I can see this happening to coincide with the mid-cycle refresh for the Tucson in 2-3 years. That's about the time it takes to build a new factory.

 

[Dex]

The language used is interesting:

Hyundai announced Friday that it will add Tucson production at the South Korean manufacturing facility where it currently assembles sedans in order to meet skyrocketing CUV demand in the United States.


According to Reuters, Production of the overhauled Tucson has been ongoing in South Korea since March, but until recently factory output was dedicated to home-market deliveries. Export production is now underway.

Hyundai recently initiated the process of expanding U.S. production capacity at its Alabama facility, but while the Tucson is assembled there, it is not necessarily the vehicle that will benefit from the expansion.

Hyundai to increase Tucson output | New and Used Car Reviews, Research & Automotive-Industry News & LeftLaneNews

I believe they can get around the chicken tax by completing final assembly in the states. Thats how Ford and Daimler had been getting around the chicken tax on imported commercial vans.



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[Santana]

I like that last line

it is not necessarily the vehicle that will benefit from the expansion.

As it gets green lighted, i'll be on the look out for what they expect monthly or annual volume to be.