Kia Motors plans to build its first plant in Mexico

 
The plant, to be constructed in Monterrey, will have a capacity of 300 thousand vehicles and will initially produce two small cars, which could help meet the demand in the United States.

Seoul-the South Korean automotive Kia Motors plans to soon begin construction of a plant in Mexico, said Monday two sources familiar with the matter told Reuters, a further sign that the company and its subsidiary Hyundai Motor Co are relieving an unofficial suspension on the growth of its capacity.

The plant, which will be built in Monterrey, will have a capacity of 300 thousand vehicles and will initially produce two small cars, one of the sources told Reuters. The installation could help meet the demand in the United States, where the only plant of Kia in the country operates at maximum capacity.

The sources declined to be identified because the plans are not yet public. Asked about a new factory in Mexico, a spokesman for the company told Reuters that Kia is considering several options to solve capacity constraints in the United States, but that has not yet taken a decision.

Makes approximately two years, Chung Mong-koo, Chairman of Hyundai Motor and its subsidiary Kia, it stopped unofficially its capacity expansion, worried that South Korean group could face the type of quality problems affecting Japanese rival Toyota Motor Corp when it grew too aggressively in the 2000s.

Kia spokesman declined to comment on whether Chung had relaxed its ban on building new factories.

The Monterrey plant would be the first KIA in Mexico and production break approximately 21 months after the start of construction, said one of the sources.


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http://www.elfinanciero.com.mx/empresas/kia-motors-construira-primera-planta-en-mexico.html

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