Kia is reportedly set to unveil plans for an assembly plant in Mexico
Numerous commercial agreements and low labor costs have helped build an excellent business climate in Mexico, which has in turn made the country a prime destination for automakers that are looking to establish new car manufacturing plants in North America.
South Korea’s Kia Motors is the latest automaker to express interest in building a regional facility in Mexico, according to reports. Mexican President Enrique Pen Nieto will reportedly officially unveil the project sometime today.
There isn’t any specific information yet, such as what models will be produced at the plant. However, it was revealed that the investment would surpass the most recent on in Mexico, a $1.3 billion factory project that was jointly developed by Daimler and Nissan.
“Having a Korean company enter Mexico will mean that practically all global automakers will be represented in the country,” said Armando Soto, president of Kaso y Asociados, a Mexico City-based auto industry consultant. “It will also trigger large investments from Korean auto-parts companies.”
Read more about the story at Automotive News.