Kia Motors to build a manufacturing unit in Georgia

Kia Motors to build a manufacturing unit in Georgia

Kia Motors is the South Korea’s second largest automaker and they are now planning to establish a car manufacturing plant in West Point, Georgia. This plant would be located near parent Hyundai Motor Co.’s U.S. plant and would cost the company around USD 1.2 billion.

The idea is to expand production in the North America to tap the ever growing demand for compact cars which are ultra reliable. For this, a deal was signed on between Kia’s Chief Executive Chung Eui-Sun and Georgia Governor Sonny Perdue.

This would be Kia’s first plant to be located in the United States and production would begin by 2009. This would just be the latest attempt from an Asian automaker to expand its presence in the American market. Toyota and Hyundai are already making cars in America and are giving local players a hard time in the competitive North American market.

They are basing this unit near the Hyundai’s plant so they can share costs and maintain a close cooperative operation.