Hyundai-Kia Automotive Group Chairman Chung Mong-koo, center, and Georgia Governor Sonny Perdue, third from left, pose with other dignitaries before cutting the ribbon to celebrate the opening of Kia Motors’ U.S. factory in West Point, Ga., Friday. / Courtesy of Kia Motors |
By Kim Tae-gyu
Korea Times Correspondent
West Point, Ga. ― South Korean carmaker Kia Motors officially opened its U.S. plant late last week in West Point, Georgia, through which the company hopes to expand its presence in North American markets.
Hyundai-Kia Automotive Group Chairman Chung Mong-koo participated in the event Friday, and was joined by Georgia Governor Sonny Perdue as well as Korean Ambassador to the United States Han Duck-soo.
After agreeing on the partnership with Georgia in 2006, Kia Motors has invested $1 billion over the past few years to establish the state-of-the-art facilities, dubbed Kia Motors Manufacturing Georgia (KMMG).
The 2.2 million-square-foot factory is now cranking out a single model, the 2011 Kia Sorento, a five-door crossover utility vehicle (CUV). It is to churn out about 130,000 cars this year and will increase the figure to its full capacity of 300,000 by 2013 by adding new models.
The CUV, otherwise called crossovers, is one of the fastest emerging segments. It is basically built on conventional car platforms while borrowing various features from the conventional sport utility vehicle (SUV).
The CUV market was negligible at less than 5 percent in the early 2000s but it recently topped the 20 percent mark, dramatically chipping away at the footing of SUVs.
In line with the changing trend in automotive demand, Kia Motors hopes that its all-new 2011 Sorento will be able to win the hearts and minds of customers this year with extensive safety features and 10-year, 100,000-mile warranty programs.
The model has already got off to a good start here. After its debut, it sold 7,398 in January to rank the third best-selling mid-size CUV in the world's second-largest automotive market.
Based on the popularity of the brand-new Sorento, Kia Motors aims to increase its U.S. sales this year to 347,000 vehicles, up 15.6 percent from last year.
``Today, we officially open the KMMG. With its opening, Kia has a firm foundation to respond rapidly to changing market trends by completing localization for research, manufacturing, sales and after-service in three major regions of the world ― Europe, China and the U.S.,'' Chung said in a keynote speech at the ceremony.
On top of the Georgia lines, Seoul-based Kia already has a pair of overseas factories in China and Slovakia, whose annual capacities amount to 430,000 and 300,000, respectively.
``I believe the plant will play a leading role in the revitalization of the entire American auto industry,'' he said.
Kia Motors says that its Georgian facilities are also only 134 kilometers away from the U.S. production lines of its sister company, Hyundai Motor, in Alabama.
This is good news for car component producers accompanying Hyundai and Kia to the U.S. as they can provide auto parts to both factories.
voc200@koreatimes.co.kr
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