2012 Kia Optima Hybrid 2.4l I4 16v Automatic Sedan on 2040-cars

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Kia negotiating to build $1.5B auto plant in Mexico

After a string of recent announcements from automakers, Kia may be the next business to break ground on a factory south of the border. The Korean company is reportedly nearly finished with negotiations to build a $1.5-billion plant near the city of Monterrey in the Mexican state of Nuevo Leon. The state's secretary of economic development confirmed the news to Reuters and anticipated talks to be completed in the first two weeks of August. Unnamed insiders also said that the location was aiming for an annual production capacity of 300,000 vehicles.
Rumors from a month ago first suggested the possibility of the new factory. It would reportedly build two models of small cars, and assembly could potentially begin as soon as 21 months after breaking ground. Currently, Kia only has one North American plant, in Georgia, that builds the Sorento and Optima.
In the last few years, Mexico has become of hotbed of North American automobile production. Mazda, Honda and Volkswagen all recently opened new or expanded factories to build cars there. There are even more on the way with a joint venture plant from Mercedes-Benz and Infiniti and BMW's announcement of its own $1 billion undertaking in Mexico.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

2014 Kia Sorento

For most new car shoppers, three-row crossovers are little more than a way for the family-minded to avoid succumbing to the minivan stigma. Admit it - the only things that differentiate most larger CUVs from minivans are their lack of sliding side doors and - on most of them - the option of all-wheel drive. Having blossomed into a popular segment with thicker profit margins, though, automakers have plenty of incentive to keep their offerings fresh, and that's exactly why Kia is presenting its 2014 Sorento so soon.
At first glance, the crisply styled utility vehicle seen here appears to be nothing more than a mid-cycle refresh - and not a particularly extensive one, at that. But that's not the case at all. Despite looking very similar to the second-generation vehicle that came on the scene for the 2010 model year, this is an all-new Sorento. Or, more precisely, it's about 80-percent new. Kia says less than 20 percent of the parts have been carried over from the 2013 Sorento, and that's a pretty typical amount for an 'all-new' vehicle generation.
Since we've yet to spend quality time with the "Made in the USA" Sorento for more than a short First Drive in Arizona last February, we snagged the keys to a 2014 model in the all-new SX Limited trim level for a lengthy backroad sojourn from Florida to South Carolina.