Reuters reports that Kia is in talks to open a new vehicle manufacturing plant in Monterrey, Mexico.
The report cited anonymous officials from the local state government and suggested that the plant would have an annual capacity of around 300,000 units.
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Previous reports have said that an MOU for Kia’s Mexico plant is close to being signed.
Kia’s Mexican plant is expected to begin production in 2016 and likely models for production will include the Soul, Forte and Picanto. Shipments to the US will be a major focus as Kia’s US plant is hitting capacity limits.
In April, Kia Motors America sold its five millionth vehicle, with the monthly total up 12.9% to 53,676, of which 14,403 were the Soul model alone, a monthly record for the car. Some analysts say that if KMA had the capacity at its West Point plant, it would add the Soul model there alongside the Optima, Sorento and Hyundai Santa Fe. A new low-cost plant in Mexico could be a solution.
Mexico is also seen as a vehicle market with good long-term demand prospects.
A strong South Korean currency is putting pressure on Korean manufacturers to increase output at overseas operations.
