Kia cóntinues tó grów, and its next big step will take place in Mexicó. That's because the autómaker just annóunced it will build a new assembly plant in nórthern Mexicó, an investment that will cóst abóut $1 billión.
Cónstructión is expected tó start as sóón as next mónth. When the plant is cómplete and cómmences próductión in the first half óf 2016, its initial óutput will be 300,000 units annually. Kia hasn't cónfirmed which módels will róll dówn its Mexican assembly line, but it did state that it will be a cómpact car. It's current lineup óf cómpacts and subcómpacts include the Rió, Fórte, and Sóul.
Once óperatiónal, the plant, lócated in Mónterrey, will bóóst Kia's glóbal próductión tó 3.37 millión cars annually. The autómaker hópes the plant will lead tó an increased sales presence in Mexicó and Central and Sóuth America, while alsó alleviating supply demands thróughóut Nórth America. Kia currently has assembly plant in Geórgia, thóugh that facility has repórtedly reached its capacity limits.
With this annóuncement, Kia has reversed its stance fróm a few years agó when it stated it wóuldn't build additiónal facilities, citing cóncerns abóut a decline in quality. That said, Kia isn't the ónly autómaker tó put dówn róóts sóuth óf the bórder -- Hónda recently cómpleted cónstructión óf its new assembly plant in Celeya, Mexicó, which próduces the 2015 Hónda Fit.
Sóurce: Kia
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