Hyundai-Kia will end an unofficial cap on NAFTA-area expansion with a new factory in Monterrey, Mexico.
Already considering a new plant in Mexico for its 1 and 3 Series, BMW may also bring MINI production to the line when the factory doors open in the near future.
A long-running lawsuit over the value of the land on which Hyundai’s Montgomery, Alabama plant is located has been settled. The Montgomery Industrial Development Board will pay former landowners $3.45 million to settle their claims. The particulars of the case illustrate the potential hazards faced by advocacy groups when they attempt to incentivize industrial development.
In the span of 24 hours, Australia inked two free trade agreements with both Japan and South Korea. Even though Holden, Ford and Toyota had already committed to ending auto manufacturing in Australia, it’s hard not to see the agreements as the last nail in the coffin of Australia’s once strong auto industry.
Fiat Chrysler Automobiles NV boss Sergio Marichonne, in talks with federal and provincial governments in Canada for loans to help prepare their factories in Windsor and Brampton, Ontario for new vehicle production, may come to a decision about moving forward with plans for where new minivans will be built by the end of March 2014.
With Canada’s federal government set to increase its own Auto Innovation Fund by $500 million CAD, a report by The Globe and Mail’s Greg Keenan now claims that Chrysler will look for as much as $700 million in government funding as part of a $2.3 billion investment in its Windsor, Ontario manufacturing facilities. In addition, the increased sum would also see funds allocated to the Brampton, Ontario plant that builds the Chrysler 300, Dodge Charger and Dodge Challenger
After a two-year break in expansion mandated by Hyundai Motor Company Chairman Chung Mong-koo in order to avoid quality issues experienced by Toyota during their aggressive growing spurt in the 2000s, Hyundai and Kia are both looking through feasibilities studies to determine where to invest in expanding their manufacturing footprint.
Automotive News is reporting that last week’s conference call on Chrysler’s quarterly financials and the structure of the newly merged Fiat Chrysler Automobiles, CEO Sergio Marchionne said that Fiat Chrysler managers were considering whether or not to build a third pickup truck assembly plant to cope with high demand for Ram light and heavy duty trucks. Marchionne had earlier vowed to never build another assembly plant in North America and in the conference call he reiterated his preference to run existing pickup plants in Warren, Mich., and Saltillo, Mexico, “flat-out.” (Read More…)
The Kleine Zeitung newspaper reported on Thursday that the BMW Group will end contract production of Mini cars by Magna Steyr in 2016. Automotive News reports that the Austrian supplier currently builds the Mini Countryman and Mini Paceman. BMW will move production of the two models to BMW’s own Mini factory in Oxford, England, and to Mitsubishi’s former NedCar facility in the Netherlands, where the Dutch group VDL will start Mini production under contract later this year. Magna Steyr’s corporate parent, Magna International, said in a statement that its relationship with BMW will continue through a new vehicle manufacturing contract.