Kia Motors Corp., one of the two car divisions of Hyundai Automotive Group (HAG), has concerns over delays in the construction of its new plant in Slovakia. It appears these delays center around government acquisition of lands needed for the project.
According to the Korean Times, foreign manufacturers such as Kia and PSA Peugeot Citroen have chosen to invest in Slovakia, a former communist country that became a European Union member in May, to benefit from low labor costs, the country's Central European location and its flat 19 percent income tax.
The Zilina, Slovakia plant represents the first European investment by HAG. A key aspect of HAG's move involves expanding its global manufacturing capacity and locating plants closer to its markets. HAG currently has car-manufacturing facilities in Turkey, China, and India. A billion dollar plant in America will begin production in 2005.
HAG leadership plans for the company to become the world's number 5 car maker by 2010.
In March, Kia selected Slovakia over Poland to build its plant, citing cheaper land and labor costs and tax benefits.
No comments:
Post a Comment