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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.

Hyundai Motor shares slide following U.S. probe of airbag failures

SEOUL — Shares in Hyundai Motor tumbled on Monday on a U.S. probe into why airbags failed to deploy in some of its Sonata sedans, with investors fretting about potential recall costs for the once popular cars. The probe, which follows crashes that reportedly killed four people and left six injured, will review the 2011 Sonata sedan as well as the 2012-2013 Forte made by affiliate Kia Motors, encompassing some 425,000 vehicles. It marks the second investigation by the U.S. National Highway Traffic Safety Administration into the South Korean duo in less than one year, exacerbating headaches for Hyundai which reported in January its worst annual earnings in seven years. Hyundai has issued a recall for more than 150,000 U.S. Sonatas after incidents of non-deployment were linked to electrical overstress in the airbag control unit, but said it did not have a final fix. "What I am concerned about is that the recall will be expanded to other markets," said Ko Tae-bong, an analyst at Hi Investment & Securities. The Sonata and Forte sedans were responsible for driving sales for Hyundai and Kia in key markets in recent years, although they are no longer as popular as they once were. Ko estimated the U.S. recall could cost as much as $575 million if airbags were replaced in 425,000 vehicles under review and the automakers were found responsible for the problem. Hyundai Motor shares tumbled 4.8 percent while Kia Motors lost 3.7 percent. Parts supplier Hyundai Mobis fell 5.4 percent while the broader market was down 0.7 percent. Hyundai declined to comment on whether the recall would be expanded. Kia said it has not confirmed problems with the airbags but added it would "act promptly to conduct a safety recall, if it determines that a recall would be appropriate." The automakers told the South Korean regulator that the Sonata and Forte models sold in the domestic market were not affected, an official at South Korea's transport ministry told Reuters. The U.S. regulator said the airbag control units were built by ZF Friedrichshafen-TRW, a German auto supplier that acquired TRW Automotive in 2015, adding that it would determine if any other manufacturers used similar airbag control units and if they posed a safety risk. The NHTSA also said that electrical overstress appeared to be the root cause in the 2016 recall by Fiat Chrysler America of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.

High-performance 2019 Kia Forte spied with dual exhaust

The 2019 Kia Forte compact sedan introduced at the Detroit Auto Show earlier this year showed off a handsome, subtly aggressive exterior inspired by the Stinger. But the sporty exterior was betrayed by a simply adequate powertrain: a naturally aspirated 2.0-liter four-cylinder engine making 147 horsepower. Now, one of our spy photographers has caught a disguised Kia Forte out testing that has a number of visual changes suggesting it's a more powerful version of the Forte. It might be called the Kia Forte GT to fit the Stinger's nomenclature, or Kia Forte SX to follow the naming scheme of past punchier Fortes. The most notable of this Forte's visual enhancements is its dual exhaust outlets. All versions of the current Forte have just one exhaust outlet on the right side and more exhausts usually mean more power. Along the side, the body and side skirts are the same as regular Fortes with the more aggressive body kit. But up at the front, we can see some adjustments under the camouflage. The upper grille appears to be larger, with bottom corners that push out lower and wider than on the basic car. The lower grille also looks a bit taller, and seems to have larger fog lights mounted farther inward than the regular Forte. View 20 Photos As for what might power the newer, peppier Forte,the likeliest candidate is the 201-horsepower turbocharged 1.6-liter four-cylinder found in the Hyundai Veloster Turbo and Hyundai Elantra Sport. As discovered by The Korean Car Blog and someone going by SHM, there is information saying that the Korean version of the Forte will indeed have that turbo engine paired to either a six-speed manual or seven-speed dual-clutch automatic transmission. This wouldn't be surprising given that the new Forte shares its naturally aspirated engine with the base Elantra and Veloster. A version of that turbo engine was also used in the outgoing Forte SX models. Since the new Forte has been revealed and will go on sale later this year, we expect we'll hear about this high-performance version sometime early next year, with a release not too long after. Related Video: Featured Gallery 2020 Kia Forte GT spy shots News Source: The Korean Car Blog, SHMImage Credit: KGP Photography Spy Photos Kia Economy Cars Performance Sedan kia forte