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Kia confirms $1B factory in Mexico to be completed in 2016

Kia is the latest in a string of automakers to announce plans to build new or expanded factories in Mexico. The Korean company has signed a $1 billion deal to establish a plant in Monterrey in the state of Nuevo León, with construction starting in late September. If everything proceeds on schedule, the facility should be complete in the first half of 2016 and be able to produce 300,000 vehicles a year.
The $1-billion investment will create a "new, highly automated manufacturing plant," according to Kia's announcement, a facility covering 1,235 acres of land. Confirming earlier rumors, Kia will produce compact models there, but the company won't reveal specific model names, just yet. When complete, the factory in Mexico will boost the automaker's annual capacity to 3.37 million vehicles a year with 1.69 million of those in Korea and 1.68 million abroad. It will also join Kia's plant in Georgia (where the Optima and Sorento are made) as the business' other North American location.
Kia hasn't kept plans for the Mexican factory a very close secret and openly admitted it was "being considered as a possible location" to Autoblog. The country was chosen partially because of its free-trade agreements (read: NAFTA), that make it less costly to move models elsewhere, not to mention its easy access to the North, Central and South American markets. The new plant should also alleviate some of the tight supply issues Kia has had in the US.

U.S., South Korea strike a new trade deal

WASHINGTON — The United States and South Korea have reached agreement on a new trade pact, the White House said on Tuesday. "We have come to an agreement in principle, and we expect to roll out specific details on that very soon," White House spokeswoman Sarah Sanders told a briefing. Her comments were the Trump administration's first confirmation that the two sides had reached an agreement in trade talks covering revisions to the U.S. South Korean Trade Agreement (KORUS) and a South Korean exemption from new U.S. metals tariffs. Seoul on Monday announced a deal to limit exports to the U.S. of South Korean steel, while extending high U.S. tariffs on any possible South Korean pickup trucks and increasing U.S. automakers' access to the Korean market. But details of the agreement have not yet been released by the U.S. Trade Representative's office, which led the negotiations for the United States after President Donald Trump last year called the 6-year-old bilateral pact a "horrible deal" that had doubled the U.S. trade deficit with South Korea since 2012. The deal is expected to permanently exempt South Korea from Trump's tariffs of 25 percent on steel and 10 percent on aluminum, but South Korea will have to reduce its steel exports to the United States by 30 percent from its average over the past three years to about 2.68 million tons. South Korea was the third largest steel exporter to the United States last year after Canada and Brazil. The agreement also was expected to double South Korea's import quota for cars meeting U.S. safety standards — not necessarily Korean standards — to 50,000 per manufacturer per year from 25,000 previously. The big challenge now would be getting unimpressed Korean consumers to buy them. The 25 percent U.S. tariff for pickup trucks, which was due to begin a phase-out starting in 2019, would be extended for another 20 years, according to South Korean officials. This would virtually ensure that any pickup truck contemplated by Korean automakers Hyundai or Kia for the U.S. market would be built in the United States.Reporting by Ayesha Rascoe and David LawderRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Reuters Government/Legal Hyundai Kia

The anti-Prius | 2017 Kia Niro Hybrid First Drive

The 2017 Kia Niro is a significant model for the brand. It's the company's first car designed from the get-go to be a hybrid. And as Kia's VP of product planning explains, it's helping lead the company's push to improve fuel economy by 25 percent across the board. So it's kind of funny that almost everything about this car reads as "conventional" or simply "normal." There are exceptions to this. Under the attractive – if not adventurous – skin is some interesting technology. Most of the mechanicals are shared with the upcoming Hyundai Ioniq, including the direct-injected 1.6-liter inline-four and electric motor that send power to the front wheels. The powertrain makes a combined 139 horsepower and 195 pound-feet of torque. Kia also implemented various aerodynamic and weight aids to make the most of the engine and motor. The Niro features air curtains, a rear spoiler, and active air shutters to help achieve a 0.29 coefficient of drag, and the hood, hatch, brake calipers, and some suspension components are all made of aluminum. Plus, when ordered with navigation, the Niro will provide tips on driving more efficiently, and will use topographical information to use electric power in the most efficient manner. The various bits of fuel-maximizing technology mean the Niro manages Prius-like fuel economy ratings of 52 mpg in the city, 49 on the highway, and 50 combined. That's only for the base FE model, though. Moving up to the slightly better-equipped LX and EX models yields a small decrease to 51 city, 46 highway, and 49 overall. If you opt for the Touring model, shown here, because you want all the bells and whistles, be ready to sacrifice more mileage – it only manages 46 city, 40 highway, and 43 overall. Kia says this is due to the increased weight of the standard features, different roof rails that change the aerodynamic profile, and the larger, wider 18-inch wheels and tires that increase the rotational mass and rolling resistance. All of the effort Kia put into making the Niro a highly efficient Prius fighter seems to have been matched by an effort to make the car appear as normal as possible and give it the broadest appeal. So, no polarizing looks like on the latest Prius and Prius Prime. Glancing at it, you'd say the Niro is just another crossover. The greenhouse looks like a scaled-down version of the Sorento's. That's not necessarily a bad thing, since the larger Kia crossover is fairly handsome.