Kia Denies Report It Plans to Build US Plant image

Today, April 24th, Kia denied a report published by Financial News which says that the automaker plans to build a facility in the US.

The South Korean newspaper Financial News published a report according to which Hyundai Motor Group, which includes Kia Motors, is in talks with Georgia state officials to build the ‘KMMG 2’ plant, which would manufacture 150,000 vehicles annually. The report was also saying that the company will break ground sometime between April and June this year.

Kia already has a facility in Georgia , which manufactures the Sorento SUV, the Optima sedan and the Hyundai Santa Fe SUV, with a total capacity of 360,000 vehicles annually. Hyundai has a plant in Alabama, where it builds the Elantra compact and the Sonata sedan.

“The report is all groundless,” a Kia Motors spokesman said.

The newspaper is saying that Kia wanted to build this planned since 2010, but has to postpone the plan due to global economic uncertainty. Hyundai, which is the 5th largest automaker in the world, has slowed capacity additions over the last two years, learning from Toyota’s mistake which faced a massive recall crisis in 2009-2010 partly due to aggressively increasing capacity.

Source: Reuters