Kia Motors Building Its First Plant In Mexico

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Kia Motors is looking to expand its presence in the North American market by building a huge plant in South America.
The company says… it will be a great access point… which will help Kia take better advantage of a growing industrial base.
Kim Ji-yeon has the details.
Korea′s second largest automaker, Kia Motors Corporation, plans to build its first factory in Pesqueria, Mexico,… just 2-hundred kilometers south of the U.S. state of Texas.
The company will invest more than one-billion U.S. dollars in the plant, which will cover 500-thousand square meters of land.
The assembly plant is expected to start producing 300-thousand Forte compact cars and Rio subcompacts in a year.
“So this additional 300-thousand will help us to be one of the leading automotive manufacturers in the global market.”
Mexico has been a great attraction for the automotive industry.
Local demand for cars is around one-million units a year… and labor is cheap and highly productive.
The country also boasts great access to markets in the U.S. and Canada as Mexico is a member of the North American Free Trade Agreement.
Due to this, auto giants including General Motors, Volkswagen, Toyota and Nissan have already built assembly lines in the country.
Mexican President Enrique Pena Nieto says Kia′s expansion in the region will help boost investment in the country.
“Kia′s commitment is to induce more investment from auto-part companies of one-point-five-billion U.S. dollars.”
Korean automakers have to pay duties of up to 20-percent when directly exporting to Mexico, due to lack of a free trade agreement between the two countries.
But now, with a plant in Mexico, Kia expects to raise the proportion of its global production from 44-percent to rival that of other automotive giants, which hover around 75-percent.
Kim Ji-yeon, Arirang News.

Comments

Juan Gayosso says:

Mexico is part of North America

Enrique Paredes says:

Mexico is NOT South America. Ignorant newsreader!!

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