Kia In Talks With Mexican Officials Over $1.5B Nuevo Leon Plant

Cameron Aubernon
by Cameron Aubernon

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.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Challenger2012 Challenger2012 on Jul 28, 2014

    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.

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    • CJinSD CJinSD on Jul 30, 2014

      @thelaine NLRB?

  • Cdotson Cdotson on Jul 28, 2014

    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).

    • Kyree Kyree on Jul 28, 2014

      Right. My grandmother bought one of these 2014 Souls in May, and hers has a VIN beginning with a K, indicating that it was built in Korea. I'm guessing that Kia would have a better competitive edge if it were built somewhere in this region.

  • Slavuta Slavuta on Jul 28, 2014

    I will not say anything original. If the car is made in Mexico I'm not buying it.

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    • VoGo VoGo on Jul 30, 2014

      @Marcus36 Slavuta, Maybe you should consider learning about Mexico before you write this garbage and get labeled a racist. Mexico boasts one of the best educational systems for engineers in the world. Mexico ranks first globally for the number of hours worked by employees. There is a thriving middle class focused on education and hard work. As others pointed out, nearly every major auto manufacturer already has a thriving plant in Mexico, or is building one. If you go to Mexico City and see the business community first hand, you'll get a much stronger view of reality than the usual US media portrayals of gardeners and undocumented workers.

  • Mechaman Mechaman on Jul 30, 2014

    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 ..