Kia Plant Comes to West Point, GA

Governor Sonny Perdue traveled to Seoul to meet with Kia president and CEO, E. S. Chung at a signing ceremony where they announced the KIA Motor Corporation would build an automotive assembly plant in West Point, Georgia. The new plant will produce 2,800 job opportunities. Five supplier companies have committed to locating in Georgia. Which will bring in 2,600 more jobs. They will build the site along Interstate 85 in West Point on a portion of 3,300 acres. About 2,200 acres will be open for future growth, improvements, and roadwork. KIA will build a welcome center, training center, paint shop, two adjacent supplier facilities, two vehicle lines and include an engine assembly line. The company has not mentioned which models the plant will manufacture. KIA builds the Amanti, Rio, Sephia, Optima, Sedona, and the Spectra5, to name a few. The plant is scheduled to begin testing operations by May of 2008. KIA plans to begin production in 2009. Their goal is to sell $800,000 vehicles by the year 2010.

This will be the first plant built in the United States outside of South Korea, The plant will cost 1.2 billion, and it will bring many opportunities to Georgia. KIA sold 1.27 million vehicles world wide in 2005. KIA Motors America had a record sales of 20,719 vehicles for the month of February, 3.2 percent ahead record setting 2005 sales. Korea-based Hyundai Motor Company owns KIA; The Company has plans to produce 300,000 vehicles a year.

Georgia offered KIA an incentive package worth $258 million that includes $76 million in job tax credits over five years, $61 million to buy and prepare the site and $20 million for job training at the plant. West Point and Troup County have granted KIA $130 million in property tax abatements for 15 years. The total package to KIA from Georgia was $410 million.

GM and Ford have seen a decrease in sales this year and they have terminated workers or have laid them off. As sales are down could this be a sign that we may lose one of our biggest automakers in America by the year 2020? The Ford Motor Company will shut down their facility in Hapeville, Georgia by 2008. The plant produced the Ford Taurus and the Mercury Sable. The plant opened its doors in 1947 and employed 2,100 workers. GM will close its doors in Doraville, Georgia in 2008. At that time 3,100 workers will be unemployed. The GM plant produced Pontiac Montana SV6, Saturn Relay, the crossover sport vans Buick Terraza and Chevy Uplander.

As the news came out about the Kia plant coming to West Point, Georgia, not everyone was happy. Some of the quiet neighborhoods would be disturbed, some literally flattened to build this massive plant. Where as other residents are excited about the KIA plant cause of the 2,800 jobs it will offer. Many residents had lived in the area for many, many years. People started putting their homes up for sale, putting them on the market for double and triple the price they are worth. They hope to sell their homes to developers who will want to purchase the property and provide housing and commercial opportunities to the community. Some people in the community were offered a nice settlement for their property.