Kia says its Mexican plant is well positioned to deal with NAFTA renegotiation
Kia Motors considers its assembly plant in Pesqueria, Nuevo Leon would be well-positioned to export its compact vehicles even if the upcoming renegotiation of NAFTA goes wrong. The facility started operations in May 2016 to build sedan and hatchback versions of the Forte, Rio and Hyundai Accent families.
This week, in an exclusive interview to Reuters, managing director of Kia Motors Mexico Horacio Chavez, said “he is not losing sleep over the possibility that Mexico, the United States and Canada could impose the maximum tariffs allowed by the World Trade Organization”.
The three countries will begin renegotiating the North American Free Trade Agreement next week.
Kia is not the first automaker to notice how Mexico’s 10 Free Trade Agreements with 45 countries provide certain advantages. Earlier this year BMW officials claimed in an interview to the Financial Times that the Mexican plant, currently under construction in San Luis Potosi, will be profitable even if without access to the U.S. market thanks to those trade deals.
Last May, the Korean automaker announced plans to export the vehicles rolling out of the Pesqueria facility to 65 countries by the end of this year.