Kia Motors Completes First Manufacturing Plant in Georgia

Kia Motors recently completed a manufacturing plant in Georgia, USA, which is capable of an annual production of 300,000 cars. This marks their official entry into the U.S. market and, for many reasons, it is worthy of notice. Since the beginning of the construction of the plant in 2006, Kia Motors has invested more than $1 billion in the facility. For the Hyundai-Kia Automotive Group, this marks their leap into the global ‘Big 4’ manufacturers. The integrated plant will be able to carry out the design, manufacture, testing and sales of new cars — right down to providing after-service.

The world’s automotive industry is in the midst of a power shift and, with the world’s number-one producer, Toyota, issuing global recalls recently, the battle has lit up. America is the world’s biggest battlefield for the automotive industry, and hence it is particularly meaningful that Kia Motors has managed to secure its place in Georgia. At the ceremony for the completion of the plant, Chung Mong-Koo, chairman of Hyundai-Kia Automotive, expressed his wishes for the plant. “The new plant will be symbolic of Georgia . . . It will also bring new vitality to America’s automotive industry. We will contribute many good job opportunities while reviving the local economy, and we will work hard to be a company loved by neighboring residents.”

For local automotive groups to make the leap to global manufacturers, no task is more urgent than the establishment of local production systems. The strategy of focusing one-sidedly on exports to break into the foreign market in order to reduce risk-bearing is not wise. If no prior preparations are made to prevent trade conflicts with developed countries, it will be impossible to become a global business power. Moreover, with the global economic crisis and Toyota’s slump, it will be disturbing if the U.S. imposes protective measures when South Korea’s automobile industry increases its exports to the U.S.

In truth, the American government and Congress have been reiterating their stands on the automobile industry in the U.S. — the South Korean FTA (Fair Trade Agreement) needs to be supplemented. This was the reason Hyundai-Kia Automotive Group accelerated its plans for the construction of its new facilities.

Our automobile industry is striving for a global market share by building its local manufacturing capacity, etc. However, the tasks ahead are numerous. The most important task ahead is to push forward with local manufacturing plants in accordance with initial plans and establish local systems of R&D, production, sales and after-services. The industry should reflect upon the recent Toyota situation and put forth its best efforts to maintain quality, develop the latest technology and preserve excellent relationships with subcontractors. The recent Toyota situation highlights the problem with the quality and functions of local production. In order to be regarded as a global corporation, the industry has to work hard to attract top-notch talent and achieve corresponding standards on developing the latest technology and designs.