Kia Motors denies media reports of plans to build factory in Georgia, US

Article by Anita Panait, on April 26, 2013

South Korean carmaker Kia Motors dismissed a report by local newspaper Financial News that it is planning to construct a new plant in the United States by 2014 to expand its capacity, which is said to not be enough to boost its sales growth in the country. The newspaper reported Wednesday that Hyundai Motor Group, which includes Kia Motors and Hyundai Motors, is holding talks with Georgia state officials to build a new plant, "KMMG 2," that could produce up to 150,000 vehicles annually.

The South Korean newspaper added in its report that groundbreaking ceremonies for the plant will be between April and June 2013 at the earliest. Kia operates a plant in West Point, Georgia that has a production capacity of 360,000 vehicles.

The West Point site, manned by over 3,000 workers, builds the Optima sedan, Sorento sport utility vehicle (SUV) and Hyundai's Santa Fe SUV over three work shifts. Hyundai, on the other hand, operates a plant in Alabama, producing the Sonata sedan and the Elantra compact.

A Kia Motors spokesman said the report of Financial New is “all groundless.” A spokeswoman for the Georgia department of economic development disclosed that it has no active project with Kia, but that it is willing to support an expansion. West Point Mayor Drew Ferguson denied knowing of any such plans.

In November 2012, Kia said it would make $1.6 billion in investments over 16 years on new machinery for the Georgia site. According to Financial News’ report, Kia internally decided in 2010 to construct the new production facilities in Georgia, but postponed the plan due to global economic uncertainty. Hyundai and Kia are struggling to stave off falling sales and market share in the US, which are mainly caused by stretched production capacity and increasing competition.

If you liked the article, share on:

Topics: kia, united states, plant

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 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