Kia Motors builds Mexican production facility

Kia Motors officially completed construction of its new factory in Mexico, Thursday, to expand its presence in the North American car market. Korea's second-largest carmaker held a completion ceremony at the plant in Pesqueria, Nuevo Leon, participated in by 500 officials, including Hyundai Motor Group Chairman Chung Mong-koo, Mexico's Economic Secretary Ildefonso Guajardo Villarreal and Nuevo Leon State Governor Jaime Rodriguez Calderon. "The new plant here in Mexico represents the next step in Kia Motors' ambition to become one of the world's leading carmakers," Chung said during the ceremony. "The innovative design and world-class quality of cars produced at the Kia Motors Mexico plant will be embraced by our valued customers not only here in Mexico but also in the Americas." Construction of the plant with an annual production capacity of 400,000 cars began in October 2014, and will boost Kia's global manufacturing capacity to 3.56 million vehicles. Kia Motors and its suppliers invested a total of $3 billion to build the carmaker's sixth foreign production base, and the plant went into partial operation in May assembling the K3 sedan, known as the Kia Forte in overseas markets. The plant is also expected to start producing the new fourth-generation Rio compact sedan by the beginning of 2017. An official said that the Mexican manufacturing plant will be Kia Motors' pivot to the Mexican and Latin American car markets. "A total of 1.35 million cars were sold in Mexico last year, the second-largest car market in Latin America, and the market volume is expected to reach 1.75 million by 2020," he said. "Due to its 20 percent tariffs imposed on import cars, however, Kia Motors has faced many sales difficulties in Mexico, but now we are ready to go." Kia Motors is aiming for a 5 percent market share in Mexico by 2020, while 80 percent of the facility's production is destined for numerous other countries in the region, including the United States and throughout Latin America where demand for Kia Motors' cars is expected to increase. Also, Kia Motors' new facility in Nuevo Leon will contribute greatly to the local economy by hiring a significant number of new employees. By the end of 2017, approximately 14,000 workers are expected to be employed at the factory and its suppliers. An official added that the new production facility will also invest approximately $1 million annually in corporate social responsibility initiatives for the region. These activities will include the donation of vehicles to public security organizations, support for low-income households and the creation of education facilities and scholarships. Source