Hyundai and union slash US Palisade shift to preserve South Korean jobs

Hyundai Motor and its labor union reached a settlement that trims the planned relocation of Palisade Hybrid SUV output from an original 200,000 units to 74,000, a 63 % reduction aimed at protecting jobs at the Ulsan complex. The pact, outlined by the employment stability committee, also maps out the redistribution of other models: plant 1 will stop producing one outlet Kona, with the next-generation Kona built at plants 2 and 3, while plant 3 begins domestic assembly in March and plant 2 will handle the North American version from August.

The Ioniq 5 will move to line 1 of the new Ulsan EV plant by September, and the Genesis GV70 EREV will be produced there from March. Hyundai’s new EV hub, launching mass production in late October, will initially roll out the Genesis GV90, followed by the GV70 EREV and Ioniq 5, with full line-two operation targeted for 2028. Analysts note the arrangement keeps the Palisade’s Ulsan base while giving Hyundai flexibility to expand US output for high-demand SUVs amid frequent domestic labor disruptions.