By Stephen Downer, Special to Tire Business
MEXICO CITY — Kia Motors Corp. officially opened its first assembly plant in Latin America — in the municipality of Pesquería, northern Mexico — on Sept. 7
The factory's installed production capacity is 300,000 vehicles a year, according to the South Korean car maker.
Mong-Koo Chung, chairman of the Hyundai-Kia Automotive Group, said in a speech that the facility represents an investment of $3 billion — a figure three times higher than mentioned previously.
News of the ceremony appeared on the federal economy secretariat's website the same day as the inauguration. By the morning of Sept. 9, Kia's corporate website had said nothing about the event, which was also attended by Jaime Rodríguez Calderón, controversial governor of the State of Nuevo León, as well as by Economy Secretary Ildefonso Guajardo Villarreal.
Soon after taking office last October, Mr. Rodríguez objected to the package of tax incentives negotiated between Kia and the previous Mexico state administration. A dispute — which delayed the facility's opening by several months and even looked at one point like it would scrap the whole project — was only ended in the spring. Details of the deal have not been made public.
Where Mong-Koo Chung's estimate of $3 billion invested in the plant by Kia comes from is not clear. Previously the company said the investment was $1 billion.
Mexico expects to be assembling 5 million light vehicles a year by the end of 2020, according to industry and government estimates.
Stephen Downer is a Mexico-based freelance writer who covers that country and Latin America for Tire Business and its Latin America e-newsletter. Material in this story about Michelin's and Pirelli's plant expansions in Mexico was contributed from Tire Business staff reports.