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Kia confirms $1B factory in Mexico to be completed in 2016

Kia is the latest in a string of automakers to announce plans to build new or expanded factories in Mexico. The Korean company has signed a $1 billion deal to establish a plant in Monterrey in the state of Nuevo León, with construction starting in late September. If everything proceeds on schedule, the facility should be complete in the first half of 2016 and be able to produce 300,000 vehicles a year.
The $1-billion investment will create a "new, highly automated manufacturing plant," according to Kia's announcement, a facility covering 1,235 acres of land. Confirming earlier rumors, Kia will produce compact models there, but the company won't reveal specific model names, just yet. When complete, the factory in Mexico will boost the automaker's annual capacity to 3.37 million vehicles a year with 1.69 million of those in Korea and 1.68 million abroad. It will also join Kia's plant in Georgia (where the Optima and Sorento are made) as the business' other North American location.
Kia hasn't kept plans for the Mexican factory a very close secret and openly admitted it was "being considered as a possible location" to Autoblog. The country was chosen partially because of its free-trade agreements (read: NAFTA), that make it less costly to move models elsewhere, not to mention its easy access to the North, Central and South American markets. The new plant should also alleviate some of the tight supply issues Kia has had in the US.

Kia still said to be considering diesels in US

Is Kia making diesel rumors a biennial thing? The South Korean automaker once again may take a closer look at making an oil-burner available for US consumption, JustAuto says. All in the name of fuel economy, of course. Kia Motors America vice president Orth Hedrick tells JustAuto that the automaker may start selling diesels in the States during the next few years. Kia is getting ready to debut its Soul EV battery-electric in the US later this year, and with diesel powertrains gradually overcoming their perceptions of being slow and loud, the company may find a receptive audience in the US for these powerplants. The problem has always been the inconsistent emissions standards between Europe and the US, but that may be resolved by 2018, says Hedrick. Kia's obviously encouraged by rising diesel sales from German automakers such as Volkswagen and Audi, as well as the fact that it just completed a record-breaking six-month sales period for the US. Kia spokesman Scott McKee, in an email to AutoblogGreen, would only say that "identifying new opportunities for growth is part of our long-term strategy" but reiterated that no announcements have been made. Of course, there was a similar buzz during the spring of 2012, when reports surfaced that Kia would start making a diesel-powered Optima, which it provides to European customers.

Hyundai closes the books on fuel economy litigation

Hyundai-Kia ended up with a lot of kimchi on its face in 2012 when it admitted it had mistakenly exaggerated fuel economy estimates on several 2012 and 2013 model-year offerings like the Hyundai Accent, Veloster and Elantra and Kia Soul. Before the admission a lawsuit had been filed by an entity called Consumer Watchdog, afterward there were "approximately 53" lawsuits filed in federal court that were eventually consolidated into one case in a California Central District court.
The companies apologized profusely and gave customers prepaid gas cards that they could refill with funds for as long as they own their vehicle, as well as perks like free car washes and routine maintenance services. The company has just announced that it has reached a preliminary settlement of the case by adding another method of reimbursement, a lump sum payment that would free drivers from having to go back to the dealership to have their mileage verified for debit card refills.
Assuming the preliminary agreement is approved by the judge, customers could choose the lump sum or the cards. The settlement's value could be as much as $210 million, but the exact number depends on which program plaintiffs choose. On average, affected customers will receive $353. Approval could come in "early 2014," after which Hyundai will notify customers. You'll find more particulars on the potential settlement in the press release below.