Mexico City • South Korea's Kia Motors Corp. said Wednesday 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 the new plant in Nuevo Leon state, across the border from Texas, will have the capacity to make 300,000 cars a year.
Kia's announcement follows several by other car companies planning to expand or build new factories in Mexico.
Last month, Germany's BMW said it will spend $1 billion to build a new luxury car factory in San Luis Potosi state that will start production in 2019 as part of an effort to expand the company's presence in the United States. BMW's announcement came a week after Daimler and Renault-Nissan said they would spend $1.6 billion on a factory in Mexico to make premium compact cars for the Infiniti and Mercedes brands.