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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.

2017 Kia Forte5 Quick Spin | Sporty compact, lots of bells and whistles

A few months ago, we drove the Honda Civic Sport and found it to be a surprisingly fun and frisky hatch thanks to quick steering, a snappy shifter, and a willing turbo engine. It's also somewhat unusual in being a driver-focused compact, available with a manual, but not solely concerned with performance; sort of a warm hatch as opposed to a hot hatch. Kia's own warm hatch, the Kia Forte5 SX, is a close match for the Honda in some ways, and even better in others – for a price, that is. The Forte5 SX starts on the right foot with its punchy turbocharged four-cylinder. It's the 1.6-liter unit, which you'll also find in the Elantra Sport and Veloster Turbo, and makes a healthy 201 horsepower and 195 pound-feet of torque that nearly matches the output of the sportier-than-the-Sport Civic Si. You'll never be waiting for that power either, as the turbo hardly lags, and any lag that is present is masked by how smoothly boost comes into play. The throttle is fairly responsive, and the revs don't get hung up between shifts like they do in the Civic Sport. The Kia continues in the right direction by offering a manual transmission, as our tester had. In fact, the turbo-equipped SX trim is the only way to get a shift-for-yourself transmission on the Forte5. It features reasonably short, light throws, and the gates are a breeze to find. It's a tad rubbery at times, and isn't quite as precise as the Civic Sport's lever, but you won't be disappointed by it. The responsive engine also makes it easy to rev-match downshifts, but the pedals could be a bit closer together for heel-and-toeing. This drivetrain is packaged in the crisp, clean hatchback body of the Forte5. It's refreshingly free of extraneous vents and badging, leaving the body tasteful and classy. It's a body that is happy to change directions, too. It turns in quickly and neutrally, with only mild body roll. The steering itself is also quick and accurate with virtually no dead zone. There are a couple of handling gripes, though. The helm feels a bit overboosted and fairly numb, the ride somewhat unrefined. The body feels less controlled than it should over bumps, and the tires aren't very grippy. Inside the Forte5, things are a bit dour. The only color on the dash aside from black are the modest number of chrome appointments strewn about. Some of the plastic has a faux carbon fiber texture, but it almost makes the dash look cheaper, or cheesier, than it could be with better material finishes.

Hyundai Palisade and Genesis GV80 production idled

In February of this year, the coronavirus pandemic forced Hyundai Motor Company to idle production at most of its factories in South Korea. The Chinese suppliers that provided wiring harnesses for models like the Hyundai Palisade and Genesis GV80 hadn't recovered from their COVID-19 shutdowns, causing a shortage of components. Since then, Hyundai, along with automakers around the globe, has faced repeated hurdles to restoring desired production numbers. Just-Auto reports another hiccup, with Hyundai compelled to shut down lines that build the Palisade and GV80 at its Ulsan, South Korea complex again last week over a lack of parts. Just-Auto didn't specify the parts in question. On top of that, Hyundai had already idled three lines at two plants after an employee at a supplier died, the cause of death thought to be COVID-19. Kia needed to do the same for two entire facilities in South Korea after two plant workers were diagnosed with the illness. In the U.S., Hyundai Motor Manufacturing Alabama was idled from March 18 to May 4, resuming production at lower output on May 4 to manage inventory after the coronavirus and lockdown measures gutted new car sales.   Hyundai, like giant Ford and tiny McLaren, will be ruing the lost momentum of its recovery. The group turned in its best quarterly profit since 2017 at the end of last year, thanks to the larger margins that crossovers and SUVs deliver. Hyundai brand U.S. sales last year of 688,771 units was tantalizing close to an annual sum the brand hasn't hit since 2012. In January, the automaker predicted it would improve on last year's 3.5% group operating profit margin by hitting 5% this year. The nearly 10,000 reservations taken for the GV80 fueled the optimism, when Genesis sold just over 21,000 vehicles in total last year in the U.S. However, through the first quarter, group sales were down 11% globally and in the U.S. Worse, Just-Auto says the group's global sales have nosedived 26% through the first five months. The production halts on the models that deliver the best return will prolong the pain and make it sharper. Related Video: