Kia Proceeding With U.S. Plant Plans

Korean automaker Kia, which is part of the Hyundai Kia Automotive Group, has reaffirmed their plans to build an assembly plant in U.S., according to a report published in the Associated Press. The plant, currently under construction in West Point, Georgia, will be finished in November 2009 with the first vehicles rolling off of the assembly line the following month.

Kia first announced the plant in 2006, giving the state of Georgia a new manufacturer who is investing $1.2 billion in the plant and creating 2500 new jobs. That infusion in the local economy will likely create thousands more jobs for the city located on the Chattahoochee River, just east of the Alabama line. When production reaches full capacity, the plant will be able to produce 300,000 Kia vehicles annually.

There has been some concern that rising global inventories could delay the plant's opening, but Kia has said that the automaker is proceeding on schedule. The company is taking a long term approach to the current economic crisis and is positioning itself to produce the types of vehicles that consumers want at the factory.

Kia has yet to announce which vehicles will be produced at the new plant, although the new Kia Soul seems to be a logical choice for the plant. The Soul, which had its worldwide debut at the 2008 Los Angeles Auto Show, has been warmly received by automotive media types who noted the car's youthful design, good looks, and likely competitive price. Designed to compete against the Scion xB and similar type models, the Soul could quickly become the leading seller for the automaker.

Both Kia and its partner, Hyundai, have been aggressively expanding over the past few years pushing the combined entity into the #5 slot among global automakers. Hyundai is the largest Korean automaker followed by Kia, with GM Daewoo taking the #3 slot. The latter company has been sending the Chevrolet Aveo stateside for several years now and is supplying additional small cars to GM for its Asian market.