South Korea's Kia Motors Corp. announces plan for $1 billion car factory in Mexico

MarketsAssociated Press

South Korea's Kia Motors Corp. says it will invest more than $1 billion to build a car factory in northern Mexico that is expected to begin production in 2016.

The company said Wednesday that the new plant in Nuevo Leon state, across the border from Texas, will have the capacity to make 300,000 cars a year.

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Kia's announcement follows several by other car companies that plan to expand or build new factories in Mexico.

Germany's BMW announced last month it will spend $1 billion to build a new luxury car factory in the northern state of San Luis Potosi that will start production in 2019 as part of an effort to expand the company's presence in the United States.