After a string of recent announcements from automakers, Kia may be the next business to break ground on a factory south of the border. The Korean company is reportedly nearly finished with negotiations to build a $1.5-billion plant near the city of Monterrey in the Mexican state of Nuevo Leon. The state's secretary of economic development confirmed the news to Reuters and anticipated talks to be completed in the first two weeks of August. Unnamed insiders also said that the location was aiming for an annual production capacity of 300,000 vehicles.

Rumors from a month ago first suggested the possibility of the new factory. It would reportedly build two models of small cars, and assembly could potentially begin as soon as 21 months after breaking ground. Currently, Kia only has one North American plant, in Georgia, that builds the Sorento and Optima.

In the last few years, Mexico has become of hotbed of North American automobile production. Mazda, Honda and Volkswagen all recently opened new or expanded factories to build cars there. There are even more on the way with a joint venture plant from Mercedes-Benz and Infiniti and BMW's announcement of its own $1 billion undertaking in Mexico.

Autoblog reached out to Kia for official confirmation of the Mexican factory, and the company emailed the following prepared statement to us:

"As one of the world's fastest growing automakers in recent years, Kia Motors Corporation is currently evaluating various options for the establishment of a new overseas manufacturing plant in order to secure future growth for the brand. As a part of these efforts, and to better cope with the ongoing supply shortage situation in the Americas region, Mexico is being considered as a possible location of our next overseas production facility."



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    • 1 Second Ago
  • 13 Comments
      knightrider_6
      • 4 Months Ago
      As long as it is not in the moocher states (Tennessee, South Carolina, Kentucky, Georgia, Alabama...) I approve
        engr00
        • 4 Months Ago
        @knightrider_6
        You mean good states that don't allow the garbage UAW?
        churchmotor
        • 4 Months Ago
        @knightrider_6
        Don't forget the bankrupt state of Michigan and the city of Detroit. They just handed out a huge chuck to GM. Along with the billions the rest of this country has been forced to hand over to the criminal UAW in bailouts.
          Genericbeer
          • 4 Months Ago
          @churchmotor
          City of Detroit yes, state of Michigan no. Maybe do some fact-checking first before you spout off.
      jack smith
      • 4 Months Ago
      "Kia negotiating to build $1.5B auto plant in Mexico" I suppose KIA's quality will then be equal to VW's? So to any of you thinking of buying a new KIA in the next few years, keep an eye on the glovebox door, other misc. interior parts and the transmission for rapid and prone failures.
        Carlos
        • 4 Months Ago
        @jack smith
        Don't be a fool; those are design problems, not manufacturing plant issues.
      davebo357
      • 4 Months Ago
      Good for Kia that they're expanding, but the Optima being built in the U.S. was a selling point for me. At least it's greener to have them built on the continent than shipping them all over.
      TopGun
      • 4 Months Ago
      Canada likely not even in the running. Guess I'm not smart enough to figure out why concentrating on exporting low value resources is better than high value manufacturing, Prime Minister Harper.
        Larry Litmanen
        • 4 Months Ago
        @TopGun
        OK, has Harper actively stopped high value manufacturing? He simply promotes export of what he has, resources take the most attention in the media because that's what makes up of the majority of exports. Do you understand how dumb you comment is, because he talks about one thing most of the time that does not mean he completely ignores everything else.
        Joseph K
        • 4 Months Ago
        @TopGun
        Suuuuuuuure, because when someone says Audi or BMW, the first thing you think is "poor manufacturing". There are a whole investigation about resources before an investment of that magnitude, do not trust me, trust them.
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