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Production of South Korean (KIA) Autos in Mexico

April 10, 2014
Production of South Korean (KIA) Autos in Mexico

The South Korean automaker KIA Motors has announced plans to construct a plant in Mexico, according to two sources familiar with the proposed project. If the plan goes forward, this will be KIA’s first manufacturing plant in Mexico. Production would begin approximately 21 months after initiating construction, according to such sources. The plant would be constructed in the city of Monterrey, Nuevo Leon. According to sources, the new plant would have a capacity of 300,000 vehicles per year, and two separate compact vehicles would be produced initially. It is thought that the construction of KIA’s plant in the industrial city of Monterrey, just two hours from the U.S. border, would assist the automaker with meeting demand in the United States, where KIA operates its only North American plant at full capacity in West Point, Georgia. This information is not yet official, and sources indicate that final plans have not yet been made public. Final confirmation from the South Korean company will need to come from Chung Mong-koo, the president of Hyundai Motors and its affiliate KIA. It has also been rumored that KIA desires to avoid expanding too quickly to avoid quality control problems that have affected its Japanese rival Toyota Motor Corp., when such latter company grew rapidly during the decade of 2000-2010. If this new project is confirmed, it would be excellent news for Mexico’s automotive industr

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