Kia Building Plant in Mexico to Produce Small Cars

Kia is gearing up to begin producing a range of small cars at a new $1-billion plant in Monterrey, Mexico.

Production is scheduled to begin in the first half of 2016, and Kia says that the plant will produce a “range of new small cars,” although they did not get into specific nameplates. Odds are, the Forte will be the first vehicle built at the plant, possibly followed by the Sportage.

Kia has been experiencing a supply shortage in the United States which this new plant intends to solve with an initial annual capacity of 300,000 units. Kia also plans to leverage the new production location to try and expand in the South American market.

SEE ALSO: 2014 Kia Forte5 Review

Mexico has been attracting lots of production from new automakers lately thanks to the country’s low labor costs and free-trade agreements with over 40 countries.

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