According to the report published by Reuters, Hyundai plans to build a new version of the Accent model in the new Kia Motors plant in Mexico. It will be the first time a Hyundai vehicle to be manufactured in Mexico and is expected to commence production in July 2017. Reuters has indicated that production will reach 20,000 units this year, this figure will increase to 76,000 units next year and 100,000 in 2018 according to sources close to the planning.
The factors that have influenced this decision are lower labor costs, proximity to the North American and South American markets and the declining demand for small cars in South Korea. Hyundai and Kia have not yet confirmed these plans.
The sources cited by Reuters indicate that production of Accent in South Korea could be halved due to plans to produce a new subcompact SUV. The manufacturer is planning to introduce subcompact SUV models in South Korea, the US and Europe.
Kia Motors will begin full production at its plant in Monterrey in the region of Pesquería in Mexico in May this year, will begin with the Forte Rio model and introduce the model later. He is currently in negotiations with the railway company Kansas City Southern de Mexico (KCSM) for the construction of 15 railway sidings on the ground for loading finished vehicles.