Seoul: Kia Motors Corp, Korea’s No. 2 carmaker, said yesterday it plans to build a new production plant in Mexico to meet demand in the vast North American market.
The company, a part of Hyundai Motor Group, said it expects a memorandum of understanding (MoU) to be signed with the state of Nuevo Leon that will permit a plant to be built in Monterrey. “An MoU should be signed next month, with construction to start soon after,” a corporate source said. Once work starts, the plant should be able to churn out cars starting from 2016.
The plant, not far from the border with the US, will be Kia’s first production facility in the country. The carmaker operates a plant in West Point, Georgia, in the United States, as well as having factories in Slovakia and China.
Kia said the plant will have a capacity to make 300,000 vehicles annually. It will produce compact Soul, Forte subcompact and Picanto minicompact car. The new plant will not only expand Kia’s presence in Mexico, but ship cars over the border to US. QNA
