Kia Motors says to start Mexico output in first-half as scheduled

3/30/2016 Reuters

KIAKia Motors expects to start production at its first Mexico factory in the first half of this year as planned, despite local government calls for a change to an investment deal reached with the South Korean company.

The new government in the Mexican state of Nuevo Leon is demanding Kia renegotiate some of the incentives promised in the 2014 deal, citing the state’s difficult financial situation, Kia said.

“The investment contract between the company and the Nuevo Leon state government was done through a legitimate procedure, and we expect the state government to respect the contract and faithfully abide by it,” the South Korean automaker said in a statement on Wednesday.


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