Kia to announce plans to build new site in Mexico

Article by Christian A., 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.

If you liked the article, share on:

Topics: kis, mexico, plant

Comments

Recommended

Last year was probably one of the busiest years for the European New Car Assessment Programme, with a total of around 70 cars tested. But amongst that huge pack of...
by - January 16, 2018
For the longest time, women in Saudi Arabia were restricted from doing what men were able to do freely. And one of the most pressing issues was driving. In the...
by - January 16, 2018
Automakers that have teamed up with Formula 1, like Mercedes-AMG, develop the coolest road-going supercars just like the Project One. Aston Martin and Red Bull, on the other hand, have...
by - January 15, 2018
There is nothing more exciting happening this month than the 2018 Tokyo Auto Salon - especially with all the concepts that are being uncovered. Apart from the Toyota GR Super...
by - January 15, 2018
The very first time we ever saw Bentley’s SUV, the Bentayga, was back in September 2015 when it came out with the impressive W12 engine. A year after that, it...
by - January 15, 2018
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