In discussing how Kia planned to use a focus on quality to raise its brand perception and take the fight to BMW and Audi instead of Toyota, a recent article in Automotive News Europe said one of the primary constraints was production capacity; Kia simply doesn't have the ability to make enough cars to meet its aims with the plants it has.

The CEO of Hyundai-Kia is said to be reluctant to build more plants because of that focus on quality and the fact that its suppliers are stretched to the limit. The effects of that position are being felt right now with both makers losing market share, as in the case of Hyundai not being able to make enough of its Veloster Turbo for the US market.

A South Korean newspaper apparently reported last week that Kia was planning to build a second factory in Georgia with capacity for up to 150,000 units annually, and that the company would break ground as soon as this month on "KMMG2." Kia has responded to the news by saying, "The report is all groundless." The mayor of West Point, site of the current KMMG plant, said he didn't know anything about such plans, nor did the Georgia department of economic development have knowledge of a new Kia factory.


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  • 15 Comments
      Drakkon
      • 1 Year Ago
      Groundless? So they will suspend their plant from balloons?
      mary.keana
      • 1 Year Ago
      LOL, KIA going after BMW and Audi. OMG, it's April 25, not April 1
        • 1 Year Ago
        @mary.keana
        [blocked]
      desinerd1
      • 1 Year Ago
      "raise its brand perception and take the fight to BMW and Audi instead of Toyota" That should be easy to do. Here's the winning formula: 1) Take money out of R&D budget and spend it on marketing. 2) Remove features. 3) Lower the quality of materials used 4) Cut down the warranty in half 5) Double the price 6) Hire more arrogant salesmen at the dealerships
        desinerd1
        • 1 Year Ago
        @desinerd1
        7) Make dozens of variants of the each model. 8) Use fancy French and Italian words like "Avant" and "Gran Turismo" for the uglier models 9) Offer sport packages which make the car look "prettier" without improving performance or handling. 10) Nickle and dime your customers.
      Lars
      • 1 Year Ago
      Taking the fight to BMW and Audi. Count me in the column of believers.
      OH NOBLE ONE!!!
      • 1 Year Ago
      Kia is a nice car for the buck...
      Logicpad
      • 1 Year Ago
      I owned all 3 brands .. Newer models of Audi BMW and Kia in past 3 - 4 years. Kia seems to have potential though its still a long way.
      FIDTRO
      • 1 Year Ago
      "In discussing how Kia planned to use a focus on quality to raise its brand perception and take the fight to BMW and Audi instead of Toyota" Don't know how Crapdai/Kia can think of taking on Audi and BMW when they can't even beat Toyota yet.
      ferps
      • 1 Year Ago
      So what exactly is the brand-positioning difference between Hyundai and Kia? From what I understand Kia was supposed to be lower-end, but isn't anymore. Is it the old Ferdinand Piech idea of having one sporty brand and one classic luxury brand?
      Groagun
      • 1 Year Ago
      I predict that within 6-24 months, a plant will be announced and shovels will be in the ground.
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