Kia in talks with Mexico over new site in Nuevo Leon

Article by Christian Andrei, on July 24, 2014

Kia Motors Corp. is holding discussions with Mexico for plans for at least $1.5-billion new auto assembly site at the state of Nuevo Leon. According to Rolando Zubiran, secretary of economic development in Nuevo Leon, disclosed that talks over the site were ongoing way between the state, the Mexican federal government and Kia.

Zubiran remarked that Nuevo Leon is hoping that talks would be concluded in the first two weeks of August. According to people privy with the matter, the Nuevo Leon site – to be built at the city of Monterrey -- will be able to build around 300,000 vehicles.

Zubiran remarked that details of the agreement were still being discussed. Reuters, citing sources in South Korea, reported that the site will initially build two small cars.

The Nuevo Leon site is expected to help Kia meet increasing demand in the United States, complementing production of its sole plant in the country. Likewise, the site located in West Point, Ga., is being shared between Kia and affiliate with Hyundai.

Once the deal materializes, Kia would join Honda Motor Co. and Mazda Motor Corp. as some carmakers building assembly site in Mexico for smaller light vehicles.

The site would be the latest in a series of major investments announced or being done by global carmakers in Mexico in recent months, hoping to benefit from the country’s proximity and free-trade access to the US, low wages, and growing industrial base.

A person privy with the talks said Kia’s assembly site could pave way for South Korea and Mexico to resume stalled bilateral free trade talks. [source: automotive news - sub. required]

Topics: kia, mexico, plant

If you liked the article, share on:


Login or Create new account to add a comment!


So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016
We’ve seen quite a lot of intriguing stories in the age of Internet (where the most interesting part was revealed before the story unfolds). Some are from movies and novels...
by - October 26, 2016
Many people have long known that the new 2018 RS5 was being developed by Audi AG. Enthusiasts the world over were excited when a prototype was seen running on the...
by - October 26, 2016
It was only recently when BMW officially debuted the new 2017 5-Series Saloon (G30) online. At that time, this range revealed that it had driving dynamics that was the best...
by - October 26, 2016