Filed under: Plants/Manufacturing, Kia
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.
Kia calls reports of second US plant 'groundless' originally appeared on Autoblog on Thu, 25 Apr 2013 10:00:00 EST. Please see our terms for use of feeds.
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