Mexican Media Brands
Report: Ex-Governor in Mexico to be Charged with Corruption in Kia Plant Deal
The former governor of Mexico’s state of Nuevo Leon and 30 other officials, family members and friends will be charged with corruption for granting excessive tax breaks for a Kia Motors Corp. assembly plant project, in Pesqueria, a government source tells Reuters.
#legal
Share
The former governor of Mexico’s state of Nuevo Leon and 30 other officials, family members and friends will be charged with corruption for granting excessive tax breaks for a Kia Motors Corp. assembly plant project in Pesqueria, a government source tells Reuters.
The group is accused of draining the state’s treasury of 3.6 billion pesos ($196 million) in potential revenue, according to the news service.
In 2014 Medina’s administration awarded Kia taxes breaks worth 28% of Kia’s $1 billion investment in the factory. Kia has since accepted the demand by Nuevo Leon’s new governor, Jaime Rodriguez, to reduce the tax allowance to 10.5%.
In June Rodriguez described as “excessive” and “illegal” the original incentive package, which waived taxes for 20 years and required the state to pay for the plant's utilities and a party to dedicate the facility.
The Pesqueria factory is scheduled to open later this year. The plant will have the capacity to supply as many as 300,000 vehicles to markets in North and South America. Kia has not yet announced which vehicles will be built there.
RELATED CONTENT
-
On Automotive: An All Electric Edition
A look at electric vehicle-related developments, from new products to recycling old batteries.
-
On Zeekr, the Price of EVs, and Lighting Design
About Zeekr, failure, the price of EVs, lighting design, and the exceedingly attractive Karma
-
GM Seeks to Avert U.S. Plant Shutdowns Linked to Supplier Bankruptcy
General Motors Co. says it hopes to claim equipment and inventory from a bankrupt interior trim supplier to avoid being forced to idle all 19 of its U.S. assembly plants.
