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Kia Considering To Build New Manufacturing Plant In Mexico
If sources are to be believed, Kia Motors will soon be breaking ground on a new production plant in Mexico.
The exact location is expected to be in Monterrey, with the capacity for the plant set at 300,000 units.
It is believed that the automaker will use the plant to build compact cars, such as Soul or Forte.
The main purpose of the new plant would be to help meet the huge demand for Kia cars in the US.
This was from a pair of different sources who asked not to be identified.
When directly asked about the possibility of a new plant in Mexico, Kia responded by saying that they are considering a number of options to help meet demand in the US, but that nothing has been decided on yet.
Reuters claim that five sources familiar with the situation revealed that Hyundai and Kia had spent considerable time performing feasibility studies on investing in a new plant, with Mexico being just one potential market they were considering.
This comes on the heels of a March announcement, where Hyundai said they were hoping to build a new plant in Chongqing, China.
Suh Sung-moon, an auto analyst at Korea Investment & Securities, said that both Korean manufacturers are now more flexible about the idea of investing in new plants since they have hit limits in their global manufacturing.
He believes that a failure to add new plants could lead to a loss in market share come 2016, which would be the first for over decade.
If Kia do go ahead with a plant in Monterrey, it will represent their first foray into Mexico.
Sources stated that production would begin around 21 months after the initial groundbreaking.
Kia currently operates a manufacturing plant in Georgia, where the Optima and Sorento crossover vehicle are currently made, while Hyundai also has a US-based plant in Montgomery, Alabama.