Kia to build Forte compact and a small car at Mexico plant
On Thursday, while in Seoul, officials of Kia Motors stated that the company is looking at making its Forte Compact and another unidentified small car which is targeted at countries local market. The officials also stated the production of these cars will take place at its assembly plant which is located in Mexico.
Last year, Kia Motors, a South Korean automaker, signed a deal that will see them build its first factory in Mexico which is set to start production come the first half of 2016 in Nuevo Leon, a vibrant state in Mexico.
While citing people, who are familiar with the matter, Reuters, at that time, reported that, initially, Kia Motors plans to produce the Rio Subcompact as well as the Forte Compact at the plant in Mexico.
Kia Motors has stated that the creation of $ 1 billion plant in Mexico is in line with the company’s future goals and that it will help in boasting its annual production capacity which is at 300,000 vehicles.
In addition to that, it will also help in boasting the carmakers total global manufacturing capacity to reach an impressive 3.37 million vehicles, this will include 1.69 million vehicles produced by plants which are located at the home-country of the carmaker and 1.68 million cars produce overseas.
Many analysts have viewed the move by Kia Motors to create a huge plant in Mexico as a way of the company to strengthen the presence of their brand in the North, Central as well as South America where the carmaker has in the recent years experienced a healthy and steady sales growth.