Kia to announce plans to build new site in Mexico

Article by Christian Andrei, on August 28, 2014

Kia Motors Corp. is set to announce plans to build an assembly plant in the Monterrey area, Mexico, two sources privy with the matter told Automotive News. The announcement will be made at the offices of Mexico's economy ministry, one of the sources said. Another source who was briefed on the plans divulged that the site is expected to be operational in 2016.

News reports had said that Kia will make at least a $1.5-billion investment in the site that will be able to produce 300,000 vehicles annually. A production base in Mexico should allow Kia to improve its ability to supply vehicles to the United States, where its sales and that of Hyundai Motor America have been restricted by limited global capacity in the past two years.

Kia and Hyundai assembly site in Georgia and Alabama are currently operating at or above their official capacity, which means additional site in Mexico would allow the carmakers to build more for the US market.

While it remains unknown which vehicles would be built in Mexico, carmakers have been using the country as a hub for producing small cars. Kia currently builds the midsize Optima sedan and midsize Sorento crossover at its West Point site in Georgia.

Kia could build Forte compact, Soul subcompact or Rio subcompact at the new Mexican plant. The lower labor rates in Mexico allow carmakers to thicken the thin profit they get from small cars sold in the US.

Topics: kis, mexico, plant

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

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
In Japan, Toyota stays in the limelight by always cooking up something new for its famous 86 sports car. A colour orange Toyota 86 performance edition is one that’s hard...
by - December 4, 2016
Back in 2009, Nissan first introduced the Nissan Leaf, the company’s first all-electric vehicle. LEAF stands for Leading Environmentally-friendly Affordable Family car and this particular EV has been considered as...
by - December 3, 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