Kia opens its first-ever US manufacturing plant

By Matt Brogan | March 02nd, 2010

Kia has opened its first US manufacturing plant over the weekend. The state-of-the-art Georgia plant is capable of producing 300,000 cars annually for both North American and global markets.

Attending the opening festivities was Mr Mong-Koo Chung, Chairman of Hyundai-Kia Automotive Group and Group President and CEO of Kia Motors America, Mr Byung-Mo Ahn.

“Kia is proud to call West Point, Georgia home and we look forward to many years of growing together,” said Mr Ahn.

“Continued diligence has helped elevate Kia to one of the fastest growing automobile brands around the globe.

“With the successful launch of the new Kia Sorento last month, and the opening of our first manufacturing plant in the United States, the Kia brand is well positioned for further growth and to become a worldwide leader in quality and innovation.”

Representing a US$1 billion investment by Kia Motors Corporation, the sprawling 204,000 square metre plant is situated on more than 2,200 acres of land.

The site has four main areas that include stamping, welding, paint and assembly. A transmission shop, module shop and two miles (3.2km) of test track are also included at the new facility.

As well as meeting the latest OH&S requirements, the plant is also on the cutting-edge of best environmental practices. A railway system within the grounds also helps facilitate transportation.

The plant provides some 1,200 jobs, a figure that is set to double by the end of the year. Nearby suppliers make up a further 7,500 jobs in the region.

The plant will primarily produce Kia Sorento models, but can be used to produce additional models as needs change.

Kia’s US sales grew by 9.8 per cent in 2009 over the previous year to 300,063 units. The brand aims to increase sales to 347,000 vehicles by the end of 2010.

http://CarAdvice The Salesman.

This is brilliant. In a country that has car manufactures shutting up shop and reducing production days Kia comes along and provides the American people with job opportunities and a future. Well done Kia…….

Andrew M

Actually if you pay attention the big US duo (Ford and GM) are actually running extra shifts.
Who exactlly is shutting up shop???
Some dealerships have been let go, but the factories are full steam again

http://CarAdvice The Salesman.

I thought you were a bit more familiar with current automotive affairs Mr. M.
Let me catch you up.
GM went bankrupt and are still trying to sell off or are closing down completely most of their brands.
Ford sold its majority share holding of Mazda and sold off Volvo completely.
Following so far?
Chrysler went completely bust and were bought out by Fiat.
So in summery you have the big American GIANTS downsizing and then you have the up and coming, profitable Koreans who for the first time are opening up factories in America.
On another note. Why are you responding to my comments instead of the article itself? Maybe you need a refresher on the code of conduct?

Shak

I thought you said shutting up shop at first and then you go on a bout downsizing. Make up your mind which one are you going on about. Mr. M was right, no manufacturer shut up shop in the US. They only slowed operations.
Andrew M

Get off your directors chair T/S.
If I arent allowed to reply to your comment, then why are you allowed to reply to mine??

Now let me bring you into 2010…..
Both GM and Ford are having to up their shifts to keep the volume to their demand.
GM going bankrupt was so last year and the FACT that they are ramping up their volume proves quite different to what you are trying to imply.

If its not that hard, please back up your claims of factories shutting up shop.

Mazda and Volvo arent American companies, and even so they havent been “closed down”. Those dealings by no way affects Fords American production does it??

Also the brands GM closed down were pretty much double up brands.
I doubt an Australian made Pontiac for eg affects American jobs. I bet you were one of those preaching for GM to up their efficiency and scale down their brands/platforms. Well they sort those problems out and people find something else to put the boot in about.

American Giants downsizing??? Since when???
The only one shrinking in the US is the Japanese giant….Toyota.
Ford and GM are globalising their operations, not shrinking them.

Either you arent caught up on today, or you have a very weird interpretation of what you read.

http://CarAdvice The Salesman

The economic impact caused by a single, large manufacturing plant closing in America is massive, according to research conducted by the Institute for Research on Labor, Employment and the Economy (IRLEE) at the University of Michigan.

In a case study on the closure of the General Motors Moraine Assembly Plant in Montgomery County, Ohio, IRLEE director Marian Krzyzowski and associate director Lawrence Molnar found that for every hourly job lost 15 jobs in the economy disappeared with it.

GM closed its 4.1 million-square-foot Moraine Assembly operation in late 2008, laying off 2,170 hourly workers. The event led to the loss of another 10,850 indirect jobs (for a total of 13,020 jobs lost) in the immediate vicinity of the plant.

But job losses cascaded through GM’s supply chain, with the elimination of another 3,334 jobs: DMAX laid off 645 workers; Jamestown Industries laid off 80 workers; Johnson Controls laid off 130 workers; PMG Ohio laid off 70 workers; Plastech laid off 88 workers; four Delphi plants that supplied Moraine laid off 2,120 workers; Tenneco laid off 118 workers; and EFTEC laid off 83 workers.

As a result, the total number of indirect jobs lost due to the Moraine plant shutdown was 27,520.

In all 33,024 workers were impacted by closing one large factory.

The economic cost was monumental. By calculating the loss of 2,170 GM jobs at $100,000 each and the 10,850 indirect jobs lost at $45,000, the total economic impact to the regional economy from the GM Moraine Plant closure was $705,250,000.

“For every one direct job lost, four [more] people are affected by loss of livelihood, insurance, etc.,” so that the total number of individuals affected was 52,080, write the researchers in a presentation to the Federal Reserve Board of Chicago.

The loss of automotive manufacturing jobs has placed a “growing strain on the safety net,” say Krzyzowski and Molnar. Between 2007 and 2008, the Dayton Area United Way experienced a 240 percent increase in its Food Pantry Visits; a 220 percent increase in Basic Needs Calls for food, housing, material resources, temporary financial assistance and transportation; and a 160 percent increase in “other needs calls” for such things as legal services, income security and mental health care counseling. Yet, revenue at the Dayton Area United Way’s partner agencies declined by 17 percent. “As a result, two in three agencies are reducing non-personnel costs; four in 10 are laying off staff or are reducing staff hours and one in five has had to eliminate programs and reduce services,” say the researchers.

Under contract from the U.S. Economic Development Administration, the IRLEE spent three years studying 23 communities impacted by dislocations in the automotive industry in Michigan, Ohio, Indiana and Wisconsin. IRLEE found that the “regional social safety net [is] vastly inadequate to meet current and increasing needs.” The two recommended that the following policies be adopted:

• Identify a federal agency to provide emergency funding that will help meet the additional demand in social service agencies;

• Pay special attention to children of dislocated workers for lack of food and basic needs;

• Pay attention to families and their inability to meet their own needs; and

• Focus on layoff aversion and job retention and creation in small- to mid-sized firms.
Andrew M

T/S,
That plat manufactured trucks. Trucks fell out of favour due to increased costs etc.
GM went into making smaller fuel efficient petrol engines as well as electric type tech.

Why do you not mention the many jobs created by their ecotec engines and electric vehicle related stuff?? What about the plants created to make batteries etc for the new age of motoring along with many associated suppliers???
As I said earlier, you were probably one that slammed GM for making trucks, and now that they switched some of their production infavour of more fuel efficient and “with the times” sort of vehicles, you only find it conveinient to mention job losses with out a whisper of the many created
Andrew M

Oh, and Im still waiting to hear what Mazda and Volvo has to do with your comments on the subject.

http://www.caradvice.com.au Baddass

Where is the Borrego/Mohave built?
AAA

What would happen to them once the powerful American auto union get hold of the workers? Same fate as GM and Chrysler?

RD

I think you’ll find they’ll do quite well, South Korea is one of the most heavily unionized countries and that hasn’t impeded their industry at all. They’re very good at you know, treating their staff well…
Andrew M

What makes you think Unions will reign on Koreas parade in the US???

The government has pretty much abolishing unions since GM bankrupsy days, and Toyota has gotten away with out letting the unions in for years resulting in lesser wages and entitlements etc

safety first

Correct almost Andrew, however is isn’t Obama’s govco that has made them redundant, it is the Governments of places like Georgia that passed rules so as these companies would set up shop. Have a look at the sweetheart deals done for people like Toyota and Hyundai, even Mercedes were given (and i quote) 180,000 per employee, guaranteed pre sales of 18000 vehicles per annum for 5 years by the state government to set up shop… I would love to know how much Kia was given.
Don’t take me wrong, I have nothing against these deals… It is the people who brag about it without opening up about them that is wrong

HyundaiSmoke

You guys know that the State of Georgia paid KIA $60 Million to set up shop? As a matter of fact they will pay anybody big time $60 Million Minimum to set up shop there. Its a good thing, I hear that area of Georgia is very economically depressed and had nearly 20% unemployment before KIA came.

That area was so backwards before KIA came it didnt even have an Intersate Highway Exit. That’s why KIA opened the plant yesterday. They didnt even have highway access unil they opened the new Exit specially built for KIA and the town.

It a Super Banjo Area I understand KIA had to ask the town to bar confederate flags, etc…

It will bring much needed social change in terms of Race Relations to that region too.

HyundaiSmoke

Very Socially responsible of this company to do this!!! Good Work!!

HyundaiSmoke

Not just the Car companies, but the Korean People in General have been going into economically depressed areas in America for years and have been providing employment and opportunities to Minorities and poor White Groups.

There’s been bumps in the road, but most of those have been mended.

Andrew M

It wouldnt be for the cheap labour would it??

ohreally

Andrew M said “It wouldnt be for the cheap labour would it??”

Oh no all business decisions at KIA and all other motor companies are based upon ethics first and profits later.

It just sooo happens that when auto manufacturers move to taiwan, south africa, south america etc it is only to give people jobs they think are unwanted in their own country.

ToyotaFactorySabbotager

Some more good news guys!! 933,800 Camry, Avalon, Rav4, and Lexus vehicles equipped with V6 engines have been targeted for repair by ToMoCo. The affected vehicles have a defect in the oil hose whereby the rubber portion thereof could potentially develop a hole and cause leakage to the point of engine failure.

Source-MSNBC
http://CarAdvice The Salesman.

Andrew M,

Is the Sorento not a type of truck?