Auto Service World
News   April 3, 2006   by Auto Service World

Kia may not be the Answer

Kia is set to open a brand new automotive plant in Georgia, but this may not be the bailout some North American parts manufacturers were hoping for.
While some Detroit based companies have inked lucrative deals, many more are being left out, in favor of an existing supply chain.
According to a report released on Friday, it appears as though “Instead of looking for new suppliers in the United States, Kia will piggyback onto the largely Korean supply chain that opened last year in Alabama to serve Kia’s sister company, Hyundai Motor Co.”
In fact, that same report suggested that Kia has already informed officials in Georgia that perhaps only 5 or 6 new facilities will be necessary to service the new plant.
Mike Wall, an analyst with CSM Worldwide in suburban Detroit said: “we’ve been telling U.S. suppliers that there is still some opportunity in this deal. Not as Tier 1 suppliers, but in trying to work with the Tier 1s that are operating in Alabama.”

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