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Kia Will Invest $3 Billion Dollars in Mexico

April 10, 2015
Kia Will Invest $3 Billion Dollars in Mexico

The Korean automaker Kia announced an investment of $3 billion dollars in a plant located in the state of Nuevo Leon. The geographic position of Mexico, as neighbor to the U.S., the largest consumer in the world, as well as the structural economic reforms, were cited as reasons for the investment, which will create 3,000 new direct jobs, and an estimated 7,000 supplier jobs. Mr. Soon Nam Lee, the vice-president of Kia Motors, stated that the production which will begin in 2016 and will be at full capacity by 2018, with production being allocated 60% to North America, 20% to South America and the remaining 20% to Mexico. Kia is already a player in the Mexican market and currently has plants located in Korea, United States and Slovakia. In Mexico, 21 dealer distributors operate in 10 cities across the country. Such dealerships will sell the Sportage, Sorento and Forte models beginning in July 2015. The Optima model, which successfully debuted at the New York Auto Show, will arrive in November. The company hopes to reach a 5% share of the Mexican market. Kia is confident this project will be a success, with Mexico being a partner with the United States and Canada in NAFTA, as well as a party to numerous trade agreements with countries in South America, the Pacific Rim and the European Union. The Kia executive, Soon Nam Lee, told NOTIMEX that investing in Mexico is a good business deal, as evidenced by the major global automotive companies that have established themselves in Mexico, which has made the automotive sector in Mexico: “one of the most dynamic and an important generator of employment and trade for the country.”

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