Hyundai to Relocate to Fountain Valley

In an effort to accommodate expansion and find a permanent headquarters for its U.S. operations, Hyundai Motor America said today that it plans to move from Garden Grove to Fountain Valley.

On Monday, the company submitted a proposal to the Fountain Valley City Council to buy 18 acres of real estate in Fountain Valley, remodel an existing two-story building and build a five-story building and other facilities.

The company currently leases six buildings in Garden Grove.

The proposed move is necessary to handle the company’s planned expansion, Hyundai spokesman Ted Kade said. Since 1985, when Hyundai opened its first U.S. offices in Garden Grove, the staff has grown to 500 and will probably grow to about 750 by 1992.

“The proposal is still subject to negotiation,” Kade said. “But we have a very strong interest in the location and we feel it could suit our needs.”

Since entering the U.S. market three years ago, Hyundai has grown to become the fourth largest foreign car importer, behind Toyota, Honda and Nissan. Hyundai, headquartered in Seoul, is South Korea’s largest car producer.

Although the company will not be a major source of sales tax or property tax revenue, local community leaders have expressed an interest in the prestige of having Hyundai relocate to Fountain Valley.