Kia confirms possibility of new manufacturing site in Mexico

Article by Christian A., on July 9, 2014

Kia has confirmed in a statement that is considering building its next overseas assembly site in Mexico. The confirmation comes following several unconfirmed news reports about the possibility of Kia setting assembly operations in the country.

For instance, Reuters reported in June, citing unnamed sources, that Kia planned to break ground “soon” on a plant in Monterrey, Mexico, with an annual production capacity of 300,000 units. Kia said in its statement that it is currently evaluating various options – including a site in Mexico -- for the establishment of a new overseas site to secure future growth for the brand.

Kia provided no timeline for a decision. Kia said in the statement that it will make a formal announcement and provide details of the investment plan if and when a final investment decision is made.

Both Kia and Hyundai have their US plants in Georgia and Alabama operating at or above their capacity levels, which means that the affiliates does not have enough ability to cater to the growing demand for light vehicles in the country, causing them to lose market share.

A new manufacturing in Mexico would ease the unofficial moratorium on new sites set by Hyundai Motor Group chairman Chung Mong-koo. The chairman has focused on improving quality and brand reputation, instead of sales growth, after Toyota’s recall crisis made the South Korean carmaker wary of growing too fast.

Should it decide to build a plant in Mexico, Kia would join hordes of carmakers investing to set manufacturing footprint in the country, which has become an attractive proposition thanks to its lower labor costs, proximity to the US and numerous free-trade agreements.

Automotive News reported last week that newly announced or just-opened sites will add around 1.5 million units of production capacity in Mexico by 2019.

Topics: kia, mexico, production

If you liked the article, share on:

Comments

Recommended

Could this be a special version of Ferrari’s much acclaimed LaFerrari? No matter how we look at it, the patent images for this sports car from Ferrari indicate its striking...
by - February 23, 2017
How fast can a 2017 Chevrolet Camaro ZL1 actually go? Considering the amount of power lurking underneath its line-laden bonnet, the 2017 Camaro ZL1 is capable of achieving a top...
by - February 23, 2017
As it turned out, we’ll be seeing Toyota’s new super supermini at the 2017 Geneva Motor Show in March. It’s time we all get to meet the new Toyota Yaris...
by - February 23, 2017
Opel revealed it has sweetened the pot for 2017 Insignia Grand Sport customers with the Opel Exclusive program. Through this program, the brand hopes to introduce a wide selection of...
by - February 22, 2017
Fireball Performance Cars has been known to make the fastest sixth generation LT1 Camaros in the world. Once again it has managed to walk the talk as it hit a...
by - February 22, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries