Kia To Build Brazil Plant In March

Autoparts Report, Feb 23, 2001

South Korea's Kia Motors Corp. plans to begin construction of an automotive plant in Brazil in March of this year, according to a report in the Chosun Ilbo. "We plan to produce 30,000 vehicles beginning at the end of 2001 after construction of the Brazilian plant starts in March," Kia Motors Vice President Park Sung-do said

A former affiliate of Kia agreed with the Brazilian government in early 1997 to build a $150 million auto plant in Brazil. But the factory plan was shelved after Kia and the former affiliate, Asia Motor Co, ran into financial troubles. The contract stipulated that Asia Motor would be subject to a fine of around $200 million if the plant was not completed this year.