Kia to Expand in Georgia

Kia to Expand in Georgia

Posted in the Autos Forum

TRD Tundra

Korea

#1 Feb 28, 2008
Kia Motors Corp. will build transmissions at its vehicle assembly plant being built in Georgia.

The factory also will supply transmissions to Hyundai Motor Co. in Alabama.

In return, Hyundai will supply engines built at its Montgomery, Ala., vehicle assembly complex to Kia's plant when the latter opens in late 2009. The two assembly plants are about 80 miles apart.

Hyundai has one engine plant building V-6s, and is building a second to make four-cylinder engines. This will be the first Hyundai or Kia transmission plant in North America.

The two automakers' component swapping emulates the relationship between Kia's auto assembly plant in Slovakia and one that Hyundai is building in nearby Czech Republic, Hyundai spokesman Oles Gadacz told Automotive News today in an e-mail.

In Europe, Kia will produce as many as 600,000 engines a year for both plants once the Hyundai plant comes on line next year. Hyundai will make a similar number of transmissions.

" One plant produces the engines while the other, transmissions, which they will share with each other, thus maximizing efficiencies of scale and avoiding duplicate investment," Gadacz said.
TRD Tundra

Korea

#2 Feb 28, 2008
The revelation explains where Kia will get powertrains for the 300,000 vehicles it plans to build annually in West Point, Ga.

When Kia broke ground on the $1 billion Georgia factory in October 2006, Kia CEO Chung Eui Sun said Kia would use engines built at Hyundai's Alabama plant.

At that time, Hyundai had an engine factory in Montgomery that had been producing 3.3-liter, six-cylinder engines since 2005. The V-6s are used in Santa Fe crossovers and some Sonata sedans assembled in Alabama.

But in January 2007, Ian Beavis, then-Kia Motors America marketing vice president, told Automotive News that Kia would one day build its own engines in Georgia.

He pointed to an unidentified building in an artist's rendering of the future Kia plant. Labeled only as " module," the building is roughly one-third the size of the final assembly building.

Beavis and CEO Len Hunt left Kia Motors America this month.

Adding to the confusion, Hyundai said last April that it would build a second engine factory in Montgomery to produce 2.4-liter, four-cylinder engines that would be shared with Kia's Georgia factory. The four-cylinder engine factory is to open in late summer with an initial production capacity of 200,000 engines annually.

But so far, Kia has announced only one vehicle for its Georgia factory: the Sorento SUV. The Sorento now is available with two engine variants: a 3.3-liter V-6 and a 3.8-liter V-6. Sorento sales volumes indicate that Kia will need to add at least a second nameplate to the Georgia factory's lineup.
TRD Tundra

Korea

#3 Feb 28, 2008
This is great news for Georgia and the U.S. economy. So much talk of jobs lost overseas and now a Korean company invests in powertrain manufacturing right in the U.S.

You will quickly see them localize production of the engine components as well.
Built Ford Tough

Philadelphia, PA

#4 Feb 28, 2008
Just building gook junk. Hyundai and Kia are the worst car manufacturers off all time. Korean JUNK.
TRD Tundra

Korea

#5 Feb 28, 2008
Hyundai placed two vehicles in Consumer Reports Top Ten list.....

Now they employ American workers.
Pat

Lagrange, GA

#6 Mar 7, 2008
Will this be more jobs on top of the 2500 that was the estimate for West Point Ga in the beginning?
TRD Tundra

Kernersville, NC

#7 Mar 7, 2008
Pat wrote:
Will this be more jobs on top of the 2500 that was the estimate for West Point Ga in the beginning?
It sure will. Kia is building a massive complex there.
Student

Lagrange, GA

#8 Mar 13, 2008
I have my interview with Kia tomorrow.

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