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Kia to Spend $1 Billion on New Assembly Plant in Mexico

Motor Trend logo Motor Trend 8/28/2014 Erick Ayapana

Kia continues to grow, and its next big step will take place in Mexico. That’s because the automaker just announced it will build a new assembly plant in northern Mexico, an investment that will cost about $1 billion.

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Construction is expected to start as soon as next month. When the plant is complete and commences production in the first half of 2016, its initial output will be 300,000 units annually. Kia hasn’t confirmed which models will roll down its Mexican assembly line, but it did state that it will be a compact car. It’s current lineup of compacts and subcompacts include the Rio, Forte, and Soul. Kia Vice Chairman Hyoung-Keun Lee; President of Mexico, Enrique Peña Nieto; and Govenor of the State of Nuevo León, Rodrigo Medina de la Cruz.© Provided by MotorTrend Kia Vice Chairman Hyoung-Keun Lee; President of Mexico, Enrique Peña Nieto; and Govenor of the State of Nuevo León, Rodrigo Medina de la Cruz.

Once operational, the plant, located in Monterrey, will boost Kia’s global production to 3.37 million cars annually. The automaker hopes the plant will lead to an increased sales presence in Mexico and Central and South America, while also alleviating supply demands throughout North America. Kia currently has assembly plant in Georgia, though that facility has reportedly reached its capacity limits.

With this announcement, Kia has reversed its stance from a few years ago when it stated it wouldn’t build additional facilities, citing concerns about a decline in quality. That said, Kia isn’t the only automaker to put down roots south of the border -- Honda recently completed construction of its new assembly plant in Celeya, Mexico, which produces the 2015 Honda Fit.

Source: Kia

2015 Kia Forte5 SX T GDI© Provided by MotorTrend 2015 Kia Forte5 SX T GDI
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