Kia May Idle Plant in China

Kia Motor Corp. says it is studying whether to suspend production at one of its factories in China because of the slumping market there.

Kia says it may idle a plant in Yancheng with capacity to make 140,000 vehicles per year. The facility, along with two others in the city have combined annual capacity to make 890,000 vehicles.

Kia’s announcement follows a similar move announced last week by parent Hyundai Motor Co., which intends to idle one of its three assembly plants in Beijing this spring.

Kia’s sales in China of domestically produced cars reportedly rose 7% to about 390,000 units last year. But that total is 40% below the brand’s sales peak of 650,000 units in 2016.