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USA: Kia to produce small cars in Georgia plant

Hyundai announced that its subsidiary, Kia, will build compact cars at the automaker's new plant in West Point, Georgia. According to executives, rising demand for fuel-efficient cars prompted the decision.

"We have plans to have the Georgia plant produce small cars," Hyundai Vice Chairman Kim Dong-jin, said in a news release. "The market environment changed rapidly, like higher oil prices, environmental issues. We have a strong presence in the small-car segment."

Kia executives in 2006 announced they would build a $1.2 billion plant at West Point, near the Alabama line in west-central Georgia. Slated to open in late 2009, it is expected to generate 2,500 new jobs and produce around 300,000 vehicles a year, officials said.

The plant will be Kia's first in North America. Hyundai currently has a plant in Montgomery, Alabama; it assembles the Sonata and Santa Fe. It is not confirmed whether the next-generation Sorento (XM) is still scheduled to be assembled in West Point as well.



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