Kia In Talks With Mexican Officials Over $1.5B Nuevo Leon Plant
July 28th, 2014 12:52 AM Share
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.
Published July 28th, 2014 8:00 AM
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This says it all,” 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.” Another step in the race to the bottom of the barrel concerning wages. If Kia finds a need for more production to satisfy auto demand in the USA, then why not build or expand a plant in the USA? Kia does not seem to have a problem selling cars here, it seems building cars here is the problem.
While a Mexican factory would indeed augment Kia's North American production output, I don't think it's entirely truthful to state that building two small cars in Mexico would augment the output of the West Point, GA factory that builds Optimas and Sorentos (not small cars).
I will not say anything original. If the car is made in Mexico I'm not buying it.
I ain't surprised at KIA needing more production. I got a laugh at AOL Autos claiming that the Optima is 'overlooked'. Really? Here in Chicago, if KIA isn't building them, the cars may be breeding. Ubiquitous is an understatement ..