Dongfeng Yueda Kia Motors, a joint venture between Dongfeng Motor Corporation, Kia Motors and Yueda, will open a third manufacturing plant in Nanjing, Jiangsu province, China.
Like this article? Sign up to receive our weekly news blasts here.The company sold 430,000 cars in 2011, almost equal to the production capacity of its existing two plants. The company is able to pushproduction up to 540,000 units annually through adjustments in both production lines and production shifts. However, production capacity expansion is inevitable for the carmaker, as it enters a period where it needs to deliver new products with very aggressive release schedules.
The company has set asales target of 480,000 cars for 2012. The two existing plants are located in Yancheng. Nanjing is a perfect choice for Dongfeng Yueda Kia Motors, due to its superior location and convenient transportation. Advantages in logistics costs, regional support facilities and talent pool also help Nanjing outrival Yancheng to become the company’s choice.
Nanjing is home to a number of complete vehicle makers including VW and Changan Ford Mazda Automobile as well as automotiveparts suppliers such as Tata and BOSCH. Establishing a plant in Nanjing mayplay an important role in Kia Motors’ global strategic development, according to a senior executive at Kia.
The Korean automaker is planning to integrate China into its global supply system and will move part of its manufacturingoperations into the country, according to insiders. Construction of the long-awaited new plant will start in the second half ofthis year and the plant will focus on new energy vehicles.
