Kia Rumored to be Building new Factory in Mexico

2015 Kia Optima (Credit: © Kia)

Kia is rumored to be following a recent trend of automakers that are locating new production facilities just south of the border in Mexico. The South Korean automaker might be looking to set up shop in the country as part of a move to increase its vehicle supply in North America, a problem that has plagued the company lately. In fact, some Kia dealerships have even gone so far as to accuse the automaker of not supplying enough vehicles to even begin to meet the public’s demand.

According to the shadowy rumors, the new factory would kick out an additional 300,000 vehicles each year. Just what models would be assembled at the facility isn’t exactly clear right now. The automaker does already produce the Optima Sedan in the United States, more particularly at a factory located in Georgia. It appears that the company sees an advantage to shifting more of its production to the North American region.

While there are many rumors about where Kia intends to build a new factory, the most credible of the bunch comes from Reuters. The news organization claims that the new Kia facility will be located in Monterrey. Once ground is broke, the new facility would begin producing vehicles in under two years’ time.

The South Korean automaker is also supposedly looking to establish a production facility in China, which as quickly become the single most important automotive market in the world. Automotive industry experts agree that Kia and Hyundai both need to expand their manufacturing footprint further, since they have reached their production capacity limit. If they fail to expand production through new facilities, Kia and Hyundai both look to lose market share in a big way.

With a new production facility in Mexico, expect to see many more Kias on roads in the United States in roughly two years.