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Kia calls reports of second US plant 'groundless'

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.

Cut the Cute: The 2017 Kia Rio grows up

The last time the Kia Rio got a ground-up redesign was for the 2012 model year. That gave the Rio a crisp, modern look, but was also extremely cute-sy. For the 2017 model year, Kia tweaked the Rio with a leaner, meaner look. Relatively speaking, anyway. The South Korean automaker previously released design renderings of the Rio, and now come official photos of the car. Kia claims that much of the styling changes were made to emphasize width inside and out. The headlights are slimmer and more aggressive than the wide-eyed lamps of the previous model, and much of the gently curving sheetmetal has been removed in favor of more flat planes. Not only that, but the new Rio is slightly longer, wider, and shorter than its predecessor. Inside, Kia has spruced things up with what looks like a nicer mix of materials. The most unusual part of the interior is the infotainment system, which Kia describes as "floating." The infotainment system extends up and off the dashboard, a bit like the screen on the Honda Civic. The good news is that Kia kept physical buttons part of the interface. The bad news is that the design looks a bit odd, as some of the buttons extend up with the screen and make it look a little like Kia used a stereo that didn't quite fit in the dash. Kia didn't reveal any other specs on the car, but those details will likely come during the Paris Motor Show. This updated Rio is an important model for Kia, as last year it sold 473,000 units worldwide. While it isn't Kia's biggest seller in the US, it did have a slight increase in sales this year. Related Video: Featured Gallery 2017 Kia Rio: Paris 2016 View 15 Photos Related Gallery 2017 Kia Rio Image Credit: Live photos copyright 2016 Drew Phillips / Autoblog Design/Style Paris Motor Show Kia Hatchback Economy Cars kia rio

Trump encouraged by talk of 'a level playing field' on trade with South Korea

South Korea is a longstanding American ally, but President Donald Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact. "We will do more to remove barriers to reciprocal trade and market access," Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos. Trump said he was encouraged by South Korea's President Moon Jae-in's assurances that he would seek a level playing field for American workers and businesses, particularly automakers. A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year. Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly. "Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies," she said. The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011. At the start of Friday's talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained. "I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side," he said. Ross said later on Friday that some progress had been made in the talks. The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues. (By David Brunnstrom and Lisa Lambert. Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay) Related Video: Image Credit: Kim Hong-Ji / Reuters Government/Legal Genesis Hyundai Kia trade