Kia Motors (and its sister Hyundai) is one of the brands of cars that highest number of sales registering in the united States. Its growth has been meteoric in the last few years and with the opening of its factory in Pesquería (Nuevo León, Mexico) it seemed that everything was going to go to best. However, the arrival of Donald Trump the government of the united States could make good progress which bears the signature south Korean in the american country delayed all of a sudden.
Currently Kia only manufactures the Forte in Mexico, but its rate of production is very high because this year they expect to increase it to 250,000 units. The problem comes in the future addition of models to the assembly lines of this novel plant. The reason is that the firm had anticipated that Fishery was to become one of their most important production centers of the world. So if the products that are made there have as main market the united States the thing changes, and more if you are running tariffs of 20 per cent to products manufactured in the aztec country.
To try to counter the threats of Trump makers Kia have reported that are developing an emergency plan. Have Chun-soo, chief financial officer of Kia, has communicated that the uncertainty that there is about Mexico and the united States is very large and that the firms that operate between both countries could be strongly damaged if the economic situation and diplomatic is not treated with the delicacy due.
main line of action to pick up this emergency plan to pass the entry or consolidation in markets that are not present. With this could distribute the production of its factory mexican to other countries that don’t have that tax burden and therefore keep their prices at bay. In addition, this plan also would have another line and is not more than the expansion of the range of products of the firm into the segment small SUV; that is to say, the arrived of the new Kia Rio SUV that will hit the market soon.
Source – Kia Motors