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Kia Opens $1 Billion Factory in Mexico
Kia Motors Corp. has officially launched production at its $1 billion assembly plant in Pesqueria, Mexico.
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Kia Motors Corp. has officially launched production at its $1 billion assembly plant in Pesqueria, Mexico.
Construction of the factory began in 2014. But the opening was delayed when Jaime Rodriguez, the new governor of Nuevo Leon where the facility is located, condemned the tax breaks granted by his predecessor as “excessive” and “illegal.” Rodriguez trimmed the incentives earlier this year to 10.5% of the project investment from the original 28%.
The facility has been described as having capacity to make about 300,000 vehicles annually. But today’s Korea Herald puts the factory’s capability at 400,000 units. Kia will use the plant to supply markets in North and South America, but it hasn’t announced which models it will make there.
The new factory hikes Kia’s global production capacity to nearly 3.6 million vehicles, with 2 million of the total represented by factories outside Japan, the Korea Herald reports. The ratio marks the first time Kia has had most of its capacity located overseas.
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