With the need to increase supply to meet U.S. demand, Kia is in talks with Mexican officials about building a new factory in the country.
Reuters reports the $1.5 billion facility would pump out 300,000 units annually, and would be located in Monterrey. The output would consist of two small vehicles to start, augmenting the output at Kia’s sole plant in the Southeastern United States.
Nuevo Leon secretary of economic development Rolando Zubrian, along with other state and federal officials, began talks last week with the automaker, and hopes a deal would be made sometime during the first two weeks of August. The plant may also pave the path toward a resumption of bilateral free trade negotiations between South Korea and Mexico.