• May 19, 2006
As the fallout from the Korean government's investigation into Hyundai Motor Co. begins to impact company operations, both Hyundai and subsidiary Kia Motors have postponed construction of new manufacturing facilities in Europe and the U.S.

Kia Motors said Thursday that it was delaying its $1.2 billion Georgia facility indefinitely, and a spokesperson said the company could no longer guarantee that production at its first U.S. plant would begin as scheduled in 2009.

In a separate announcement, Hyundai Motor, which only today signed an agreement with the government of the Czech Republic to build a $1.28 billion factory, said it was delaying the start of construction for the Czech facility.

By most accounts, it would appear that the indictment of Hyundai's chairman, and the pending indictment of his son, the president of Kia, is creating the leadership vacuum feared by analysts. It will be interesting to see how long it takes both marques to get back on track.

[Source: Reuters]


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    • 1 Second Ago
  • 7 Comments
      Pam
      • 8 Years Ago
      wow, huge blow to Kia, I just bought new Sportage in 05 and love it. Comfortable little SUV, hope this doesn't take long. New plant in US would be great.
      • 8 Years Ago
      Ask the people of Quebec about how their Elantra plant went...
      • 8 Years Ago
      Wow tough blow for Kia/Hyundai..

      Ok, what up with post like #2, it's like AutoBlog has commercials now... Blog Spam?? ;-)
      • 8 Years Ago
      Could it be that the now jailed Hyundai CEO issued bounced Czechs?
      • 8 Years Ago
      • 8 Years Ago
      when the cats away, the mice wont get to play !
      • 8 Years Ago
      More likely a Hyundai ploy to pressure the SK government to back off the indictments of their leader as he is so "crucial" to the company....