South Korea-based Kia Motors Corp. plans to construct a $1.5 billion assembly plant in Mexico, a senior automotive industry source in Mexico City told Automotive News.
The plant is scheduled to begin operating in 2016 and would “likely bolster Kia’s ability to supply vehicles to the U.S. market,” the trade publication said.
The automaker assembles the Optima sedan and Sorento crossover at its Kia Motors Manufacturing Georgia Inc. in West Point, Ga. The plant went online in 2009, has since produced more than 1.2 million vehicles.
Irvine-based Kia Motors America Inc. is the marketing and distribution arm of Kia Motors Corp. for the North American market. Its Chief Executive Byung Mo Ahn also oversees company’s manufacturing operations in Georgia.
Other automakers, such as Honda Motor Co., Daimler AG, Audi AG, BMW AG, Mazda Motor Corp., and Nissan Motor Co., have established manufacturing operations in Mexico in the past six months or have announced plans to do so according to the Wall Street Journal, bringing the total to $9 billion in new automotive projects for the area.