Kia to build a new plant in Mexico
- The Korean carmaker Kia (Hyundai-Kia group) announced the construction of a new plant in Mexico, at Monterey. • The plant will start producing vehicles in the first quarter of 2016 and will have a capacity of 300 000 units.
- Building a plant in Mexico will initially enable Kia to supply the United States market, accounting for nearly 80% of Kia sales in the Americas (North and South), where the manufacturer has doubled its sales between 2004 and 2013, from 270 000 units to 535 000 units. Secondly, Kia wants to expand in major Central and South American markets, where it currently has a very limited presence (Chile is the largest market in South America with just over 30 000 units sold in 2013 ).
- Kia has not yet disclosed the models that will be produced at the plant, simply stating that it would be compact cars (from segments B and C). However, one can deduce that it will be the best selling compact models sold in the USA and currently produced in South Korea, namely the current or alternate models of the Soul (MPV from segment-B), Forte (sedan - segment C), Rio (sedan - segment B) and Sportage (SUV - segment C). These four vehicles were sold in 2013 to almost 330 000 units across the Americas, which fully justifies the capacity of the future plant.
- In 2013, the Kia manufacturer produced nearly 2.8 million vehicles worldwide with capacity of just over 3 million units. By 2016, Kia will have 11 plant - excluding CKD plants: three in China, two in Russia, one in Slovakia, 3 in South Korea, 1 in the USA and soon 1 in Mexico.
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