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:

Comments

Login or Create new account to add a comment!

Recommended

Nikola Motor’s hydrogen-powered semi-trailer truck is highly appealing with its many advancements but don’t expect it to arrive in the near future. In November 2016, Toyota announced the possibility of...
by - December 5, 2016
Usually, it is up to resourceful spy photographers to take clear pictures of vehicle prototypes, especially those that have aroused a lot of interest. The same is true for Project...
by - December 5, 2016
The much-anticipated debut of the new Wrangler will surely happen. As it approaches, we’ve gathered all the latest information released so far. Of course, most are expecting that the next...
by - December 5, 2016
Nissan has announced the pricing for its new commercial pickup line. So for those who have been waiting for Nissan’s official price list (plus a little more info), read on… ...
by - December 5, 2016
Sorry folks, the AMG-fied Mercedes-Benz X-Class will remain in the fantasy world. According to some news, the AMG big boss has finally spoken up about why an AMG X-Class is...
by - December 5, 2016
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