Kia Motors to build a $1.5 billion plant in Mexico

Kia has one manufacturing plant in the US which it shares with Hyundai. But, due to rising demand, Kia has started dialogue with the Mexican economic development to build an assembly plant worth $1.5 billion. This plant will have the capacity to produce 300,000 cars annually. The plan is to produce 2 small cars in the beginning and gradually grow as per the demands. It is located in Monterrey.

Kia is not the only one to build facilities in Mexico as Honda and Mazda have also set up their foothold in the region since Mexico’s industrial base is growing, wages are cheap and its proximity to US. Moreover, with this plant, there is a possibility that South Korea and Mexico can reinitiate bilateral trade talks.