- Title: Kia Mexico says future without NAFTA "manageable"
- Date: 10th August 2017
- Summary: MEXICO CITY, MEXICO (AUGUST 09, 2017) (REUTERS) REUTERS JOURNALIST GREETING DIRECTOR GENERAL OF KIA MOTORS MEXICO HORACIO CHAVEZ AS HE WALKS INTO ROOM CHAVEZ TALKING TO JOURNALISTS CHAVEZ SPEAKING DURING INTERVIEW GENERAL VIEW OF INTERVIEW (SOUNDBITE) (Spanish) DIRECTOR GENERAL OF KIA MOTORS MEXICO HORACIO CHAVEZ, SAYING: "Regarding finished automobile products for export I think it would be an additional impact of 2.5 percent, which will undoubtedly be reflected in an increase in prices but I think it is a manageable tax. It's not like other vehicles which don't have (local) production and which are pickups that will have much higher taxes and would complicate the export of these types of vehicles to the United States." REUTERS JOURNALISTS DURING INTERVIEW GENERAL VIEW OF INTERVIEW (SOUNDBITE) (Spanish) DIRECTOR GENERAL OF KIA MOTORS MEXICO HORACIO CHAVEZ, SAYING: "For the moment we have not been affected, but it is something that we are monitoring and to be ready for how things flow on this matter. But for the moment we haven't changed plans and we have export projections of about 50 percent of our production." REUTERS JOURNALIST ASKING CHAVEZ A QUESTION (SOUNDBITE) (Spanish) DIRECTOR GENERAL OF KIA MOTORS MEXICO HORACIO CHAVEZ, SAYING: "We will also launch production with a vehicle from Hyundai, a production that started last month. However, we have always produced this vehicle and we do not give out information on its commercialisation and the exportation of this vehicle, but it's a vehicle that is also produced in our Pesqueria (Nuevo Leon) plant." CHAVEZ RESPONDING TO JOURNALISTS REUTERS JOURNALISTS COMMENTING ON CHAVEZ' ANSWER JOURNALISTS AT END OF INTERVIEW WITH CHAVEZ
- Embargoed: 24th August 2017 01:04
- Keywords: NAFTA USA KIA trade automobile industry Canada Mexico Reuters Summit director general of Kia Motors Mexico Horacio Chavez
- Location: MEXICO CITY, MEXICO
- City: MEXICO CITY, MEXICO
- Country: Mexico
- Topics: Government/Politics,International Trade
- Reuters ID: LVA0016TKOK77
- Aspect Ratio: 16:9
- Story Text: Kia Mexico played down NAFTA trade fears during an interview with Reuters on Wednesday (August 09) as Mexico, the US and Canada prepare for negotiations this month to update the free trade deal.
South-Korean based Kia has used Mexico as a springboard for its market in the Americas. The carmaker in 2014 announced a $1 billion project to build the Mexico plant, with a capacity of 300,000 vehicles a year. It has since expanded to another plant in Mexico in the border state of Nuevo Leon. But the company also produces 360,000 vehicles in the US at its plant in Georgia. One scenario that could come out of NAFTA renegotiations is of a 2.5% tax on vehicles produced in the region. But those Kia cars brought from outside North America could incur a much higher tax.
U.S. President Trump has threatened to slap a hefty border tax and renegotiate the NAFTA trade deal, threats which reportedly saw Ford scrap plans for a $1.6 billion plant in Mexico earlier this year. But Kia told Reuters it will not follow the Michigan auto maker's decision and has even expanded production in Mexico to include vehicles from sister-company Hyundai.
Kia is relatively new to the Mexican car market but in the two years of production in Latin America's no.2 market it has clinched 5% of market share, which it had originally forecast to achieve in 2020. Although Mexico's emerging market has seen it become a boon for automakers, Kia exports 85% of its Mexican-made vehicles to North and South America. - Copyright Holder: REUTERS
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