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Kia Motors holds talks with Mexican officials over incentive row

All News 17:07 April 04, 2016

By Kim Kwang-tae

MEXICO CITY, April 4 (Yonhap) -- Kia Motors Corp., South Korea's second-ranked carmaker, held talks with Mexican federal government officials and representatives from the northern Mexican state of Nuevo Leon to try to work out differences over incentives, a government source said Monday.

Still, the South Korean insider did not provide any details of the meeting that took place on Sunday.

Kia Motors and Mexican officials were not immediately reached for comment on early Monday.

The meeting came ahead of the summit talks between South Korean President Park Geun-hye and her Mexican counterpart, Enrique Pena Nieto. The two leaders are expected to discuss the issue at their meeting.

Kia Motors was promised, among other things, land for a plant free of charge and a five-year corporate tax exemption by the state of Nuevo Leon.

The assembly plant -- which will have an annual capacity of 300,000 units -- is nearing completion. Kia has said it plans to begin producing vehicles there in May.

Still, the local government of Nuevo Leon has asked for renegotiations with Kia Motors, casting a pall over Kia Motors' plan.

Last month, a Kia Motors official said the local government of Nuevo Leon has asked for renegotiations on some incentives, citing reasons such as its financial shortage problem.


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