Kia Motors said today that it has reached an investment agreement with the Mexico government to build a manufacturing plant in Monterrey in the northeastern state of Nuevo León. Construction planned to begin in late September.
When completed during, the first half of 2016, the plant will add 300,000-units, which will increase Kia’s total global manufacturing capacity to 3.37 million cars per year – 1.69 million vehicles at domestic Korean plants and 1.68 million at overseas plants.
Kia said it plans to produce a range of yet-to-be confirmed compact models at the new plant.
Mexico was chosen as the site for Kia’s next overseas plant because it is one of the remaining major global markets where Kia does not have a sales presence. Mexico imposes high tariffs on imported cars from Korea.
Mexico has many trade agreements – such as NAFTA- with 40 countries. The U.S. will be an export market.
Kia also says it will use the $1 billion plant to strengthen the brand’s sales presence throughout the entire Central and South America region while freeing up supply from Kia’s domestic plants to address supply shortage issues in other regions of the world.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
