Mexican State Seeks Break on “Excessive” Incentives for Kia Factory

The Mexican state of Nuevo Leon says it is within days of resolving efforts to ease tax incentives that two years ago helped convince Kia Motors Corp. to erect a $1 billion plant there.

Governor Jamie Rodriguez, who took office in October, says the state’s previous administration illegally waived Kia’s obligation to pay state taxes for 20 years, Reuters reports. “They’re going to put me in prison for allowing it,” Rodriguez declares.

South Korean President Park Geun-hye visited Mexico on Monday in part to resolve the issue. Rodriguez says discussions have been positive and constructive.

Kia’s factory in Pesqueria, which is scheduled to open within a few months, will have annual capacity to eventually make 300,000 vehicles per year for the North and South American markets.