Kia Motors announces billion-dollar assembly plant in Nuevo León Another automotive manufacturer has joined the ranks of those who have chosen Mexico to set up shop. Kia Motors Corp. will build its first plant here with a billion-dollar investment, producing 300,000 vehicles a year after it begins production in 2016, said company vice-chairman Lee Hyoung-Keun at a news conference with President Peña Nieto today in Mexico City. Kia’s plans further cement Mexico’s position as one of the world’s major automobile manufacturing countries, and means that nearly all the major automakers will be represented in the country. It will also trigger large investments from Korean auto parts companies, forecast industry consultant Armando Soto of Kaso & Asociados. Peña Nieto said those additional investments are expected to total $1.5 billion. The president made note of the fact that “a transnational company as prestigious as Kia Motors chose Mexico” while having the option of investing in any country in the world. “This shows the confidence global investors have in the present and future Mexico.” The new plant will be located in Pesquería, near Monterrey, in Nuevo León, making it the state’s first automotive assembly plant. No information was offered regarding the models the plant will produce but one analyst thinks the Forte compact and the Rio subcompact. Ed Kim, of AutoPacific Inc., said those models are currently only made in Korea. Kia is partly owned by Hyundai Motor Co. The Mexican Automobile Industry Association says production in this year might surpass 3 million vehicles, a record, given the opening recently of new Nissan, Honda and Mazda plants. -
Posted on: Thu, 28 Aug 2014 00:45:20 +0000
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