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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.

Tesla exec calls rival EVs 'little more than appliances'

Tesla's Vice President of Business Development Diarmuid O'Connell called the company's competition "little more than appliances" at the Center for Automotive Research's Management Briefing Seminars in Traverse City, MI yesterday. "In essence, [mainstream automakers] delivered little more than appliances," O' Connell said. "Now, appliances are useful. But they tend to be white. They tend to be unemotional." According to Automotive News, O'Connell's main critique is that vehicles like the Nissan Leaf and BMW i3 don't deliver enough performance or range to draw the attention of consumers outside of a small group. The solution, in O'Connell's mind, is more power, more range, more excitement and a lower price – that last point is particularly rich coming from an automaker whose cheapest current offering, the Model S 60, costs $66,000 – although the cheaper Model 3 is on the horizon, way out there, somewhere. But some EVs are better than none, O'Connell added. "On balance, I'm happier that [traditional automakers are] doing these cars than not," O'Connell said. "I just wish they would do them better and faster." O'Connell also used his appearance at the Management Briefing Seminars to launch a volley at the Michigan legislature, blaming its opposition to Tesla's direct-sales model for the lack of available EVs in the Wolverine State. "I think if the Michigan Legislature would allow Tesla to sell cars in Michigan, we could probably address [the lack of available electric cars]," O'Connell said. Related Video:

2021 Kia K5 First Drive | Comfy, cool, but not quite king

Despite the sedan market continuing to lose market share to crossovers and SUVs every year, it’s still a segment that sells millions of units a year. ItÂ’s also one of the most hotly contested segments with strong offerings from Honda, Toyota and Mazda among others, which means itÂ’s hard to stand out. But the 2021 Kia K5 aims to do exactly that. It discards the long-running Optima nameplate for the model's Korean-market alphanumeric designation, and adopts the most dramatic styling Kia has ever used on a midsize sedan. Kia has coupled that with a stylish, quality interior, and a driving experience that is exceedingly comfortable. It's not particularly engaging to drive, which prevents it from being the segment's best, but itÂ’s a strong competitor thatÂ’s worth your consideration. Like the K5Â’s Optima predecessor, the K5 is mechanically related to the Hyundai Sonata, and shares powertrains with it. But this time, itÂ’s a bit choosier. The only engine available at launch is a 1.6-liter turbocharged four-cylinder making 180 horsepower and 195 pound-feet of torque coupled to an eight-speed automatic transmission. The Sonata's naturally aspirated four-cylinder is nowhere to be found. Fuel economy comes in at 27 mpg city, 37 mpg highway and 31 mpg combined for most trim levels, with the base LX basically getting 1 mpg better. 2021 Kia K5 GT-Line View 11 Photos The K5 will also offer all-wheel drive with this engine, again differing from the Hyundai. Later this year, a much more powerful 290-hp turbocharged 2.0-liter engine shared with the Sonata N-Line will be offered on the K5 GT. This version will be front-wheel-drive-only and get an eight-speed dual-clutch automatic instead of a traditional torque-converter unit. Kia is promising a 0-60 time of 5.8 seconds, which would be blisteringly quick for a family sedan. In the EX and GT-Line models we tested out, we found the standard engine had plenty of torque throughout the rev band, so it will comfortably haul you around, but never really excite. ItÂ’s mostly quiet, but pushing it hard will elicit some buzziness. The transmission is quite smooth and chooses gears well enough, but gear changes in manual mode are sluggish. Again, weÂ’re hoping the GT will liven things up a bit. Not being exciting is not necessarily a bad thing, though. It wonÂ’t be long before you discover that the K5Â’s advantage is its superb comfort.